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The world will face coffee shortages for an “unprecedented” third year in a row due to lower-than-expected harvest from top grower Brazil, according to coffee trader Volcafe.
Global supply will trail demand by 3,8 million bags in the next season, with robusta beans hitting a record shortfall amid surging demand for the variety used in instant coffee and as a blend in espressos, the ED&F Man division said in a January report. The shortfall comes after demand in the current season is seen as outstripping supply by 4,5 million bags, according to the firm.
“This would imply an unprecedented, third consecutive deficit,” Volcafe said in the report. “We expect the tightest period to begin from August 2023 and continue into 2024, with global stocks, especially robusta, falling to record lows.”
Volcafe’s bullish projection could drive up prices for coffee lovers.
A robusta deficit of such magnitude could make even traditional brands at the supermarket more costly for consumers trying to cut expenses while dealing with stubbornly high food prices. Brazil is also expected to harvest less arabica, the bean favoured by Starbucks Corp., which could translate into higher prices at coffee chains and cafes. — Bloomberg.
Online Reporter