Coffee could get pricier in Azerbaijan

Coffee has become pricier in the world market mainly due to the increase in prices in Brazil, the homeland of coffee.

The coffee plantations in this country suffered a great deal of damage from the drought that occurred last year and then from the frost, so the plans of the local farmers for crops failed. As a result, coffee prices on commodity exchanges have started to break records over the last ten years. So, the cost of one pound of Brazilian coffee has increased to $2.58, and now the price has stabilized at $2.23, which means an increase of about 35% compared to last year.

Along with Brazil, plantations in Colombia, another leading coffee exporter, have also suffered from adverse weather conditions. As expected, the productivity of some farms in this country may decrease by half. The Minasul cooperative, which unites some of the farmers engaged in the production, sale, and export of coffee in Colombia, expects the total production volume to decrease to 1 million bags in 2022.

It's not just scarcity that makes coffee more expensive. These factors also include the difficulties that have arisen in global logistics - the increase in transportation costs. According to the International Coffee Organization, global demand for this drink may exceed supply. As a result, coffee may become pricier in all countries, including Azerbaijan.

Samir Guliyev, an expert of the company that supplies coffee shops in Azerbaijan with coffee, stated to Report: "We buy coffee according to the price on the world stock exchanges. If the prices on the stock exchanges rise, prices in our country will rise automatically."