Coffee sales are falling worldwide due to record prices. But there are conditions under which it will become cheaper

Coffee sellers have cut purchases to a minimum due to a sharp jump in product prices. Suppliers are finding it difficult to convince stores to accept the product at the new prices.

This is reported by the Saudi newspaper Arab News.

Participants in the National Coffee Association convention in Houston reported a 70 percent increase in Arabica coffee futures on the ICE exchange. Ecuadorian coffee producer ELCAFE CA sold less than 30 percent of its expected annual production through March for the first time this year.

The price of coffee has increased due to a decrease in production, particularly in Brazil. As a result, the supply of coffee beans has decreased significantly.

Brokers said companies have purchased raw materials in the quantities needed now and have given up on stocks. A source told Arab News that many of the fresh deals in Brazil were made “in a very conservative manner”.

Reuters predicted that prices for Arabica coffee could fall by 30% this year as high prices dampen demand and Brazil is likely to harvest a record crop next year.

But until prices fall, the coffee industry could suffer significant losses. The head of one of the largest roasting companies in the United States says his customers are unsure about the future of their businesses. Supermarkets and stores have resisted higher prices, leaving coffee on shelves in some stores.

In response to the crisis, India, Uganda, Ethiopia and Brazil are expanding their plantings, which could also lead to a collapse in prices.

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