Coffee Crisis Escalates as Prices Surge to $2.3 Per Pound Amid Global Demand Shifts

The coffee industry is experiencing a significant crisis as global prices soar. The price of robusta coffee, often used for instant beverages, has reached a record high since 2008, driving up demand for alternative varieties like Colombian Arabica. Consequently, the New York Stock Exchange price per pound reached $2.31, its highest since June 2023. Colombia’s internal reference price has seen a similar hike, rising from $1.4 million to $1.7 million as of April 19th.

This situation has sparked a national strike by Colombian coffee growers, who demand fairer prices to cover production costs, currently estimated at $1.8 million. Industry experts note that the current pricing mechanisms do not adequately reflect these costs, leading to financial strain for growers.

Furthermore, the European Union’s upcoming Green Deal regulations pose additional hurdles for Colombian coffee exporters. The zero-deforestation and traceability requirements, set to take effect in late 2024, might disproportionately impact small-scale farmers. In response, the Colombian coffee sector is seeking alternative markets, with China emerging as a significant growth area.