THE’inflation It is now a fact: the prices of raw materials have grown exponentially, up to the boom linked to the turbulence in the Black Sea with the attacks of the Yemeni Houthi rebels on ships in transit towards the Suez Canal. A situation that has made transportation more expensive than in the past, a burden borne exclusively by consumers. But pay attention to the two reasons mentioned above, central in this phase made of high volatility and an unprecedented upward trend.
Regarding the effects of climate change, confirmation has arrived from an excellence in the sector such as Illycaffe. “It could halve the cultivated land by 2050”, the analysis of the CEO Christina Scocchia: “Just think about what is happening in recent months: from torrential rains in Brazil to drought in Vietnam”. The local company offers an example of the increases: illycaffè’s production costs in the two-year period 2022/2023 increased by 17 percent, but only a third of this increase in costs was passed on to consumers.
That’s not all. As highlighted above, among the factors of the 2 euro cup of coffee there is also the new European Union-backed deforestation rule which will come into force in 2025. In 2023, the European Parliament approved a law aimed at combating climate change and biodiversity loss that requires companies to ensure that products sold in the EU do not cause deforestation. Among the products affected is also coffee, which is often exported from countries such as Brazil, Vietnam, Colombia, Ethiopia and Honduras. In this case too – as always, in reality – consumers will pay a higher price.
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