By Tamsin Brown • 14 January 2022 • 9:48
The supply crisis resulting from reduced coffee production in Brazil and Colombia has led the price to double in Spain and other countries.
The result of the coffee crisis can be seen at Cafeteria Berrendero in Coslada (Madrid). Pedro de San Antonio runs this family business, which opened in 1967, with his brother. “On December 1 we had to increase the price of coffee, and also of sugary drinks”, he commented to El Debate. Pedro checked his receipts and discovered why they had had to raise the price of something so common and standard as coffee.
“In January 2021 we were buying coffee wholesale for 1,581.37 euros, but the purchase in November had increased to 2,019.11 euros,” he stated.
The price of coffee as a raw material listed on the North American market varied from 120 dollars to 250 dollars over the 52 weeks of 2021. On the market in London, the price went from 1,291 pounds to 2,499 pounds by the end of 2021.
This is what has taken place at thousands of establishments throughout Spain. Coffee now costs twice the amount it did a year ago. The root of the problem can be found in the droughts in Latin America and a reduction in purchases made, as the pandemic has forced many businesses to close or limit the number of customers.
Brazil is the world’s largest producer and exporter of coffee. In 2021, Brazil produced 49 million sacks of coffee, each one weighing 60 kg, with a reduction of 21.1% in comparison to 2020.
The prolonged drought in the first half of the year and the frost in June and July negatively impacted the harvest. Sao Paulo and Mato Grosso recorded the lowest levels of precipitation in history, which led to what they called “the worst drought of the century”.
The problem is similar in Colombia. In 2021, coffee production was 12.6 million 60-kg sacks, 9% less than in 2020. The National Federation of Coffee-Growers said this result was caused by “the negative impact of the social protests in the second quarter of the year and the effect of the climate in some coffee-producing regions”.
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Originally from London, Tamsin is based in Malaga and is a local reporter for the Euro Weekly News covering Spanish and international news.
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