International media: Alarm, top coffee in 50 years

Coffee prices have reached the highest levels of lift in the last nearly 50 years, the prestigious international media have sounded alarms these days.

The Reuters news agency reports that this increase will directly affect the price of coffee both for domestic and local consumption. According to them, this increase in the market price affects large corporations, such as Nestle and Starbucks, which will be forced to sell their products more expensive than yet.

The recent increase in coffee prices comes mainly as the results of bad weather in Brazil and Vietnam, places that produce lots of coffee for the global market.

Coffee production has been problematic for the past three years in a row, causing major market shortages and price increases of up to 4.06 euros per kilogram, which has not been seen since 1977.

If this situation persists, coffee prices can hit consumers and businesses even more heavily. Brazil, the leading producer of arabica coffee, is missing the flowers needed for coffee beans because of severe drought, while excess rainfall in Vietnam has damaged the production of captive coffee. Experts say production in these countries could drop by 10% next year, further exacerbating global shortages.

This situation has plunged coffee merchants into crisis. Many large commercial companies in Brazil are facing debt restructuring, and some risk bankruptcy because of high prices and difficulties in obtaining their goods.

In an effort to avoid losses, traders are trying to link new future coffee contracts, which is promoting even higher prices. This situation is creating a dangerous cycle that can lead to more serious market consequences.

For consumers, this means only one thing: the most expensive coffee. The Rotters, who bought coffee months ago, are expected to increase the prices of their products within 1-2 months.

Reuters estimates that the most hit by price hikes will be ordinary consumers buying coffee at the store or preparing at home.