the Stock price of the coffee has reached the minimum prices in may last year, and after short-term growth has again fallen almost to the bottom. In Russia the cost of product has increased and this is the explanation.
market value contracts for the supply of coffee has fallen by almost 1.5 times, and during a pandemic, the demand decreased.
the Price of Arabica varieties, the most popular, since the end of March decreased by 16%. During the quarantine, restaurants, coffee shops and cafes were closed, and it is one of the largest wholesale consumers of coffee. Decreased purchases and in retail – in the morning there was no need to rise early to work or to cheer yourself coffee while you work. In the end the current financial quarter was one of the worst in the history of coffee growers. The price for it was lower only in December 2001 due to oversupply and the global crisis.
But Russia is a significant decline in prices will not reach the cost of coffee growing. It involves complicated logistics and transportation costs, and sellers ‘ desire to quickly recapture financial losses. Although the end of 2019, coffee became more popular than tea.
coffee Sales for the first quarter in Russia fell by almost a third, while the average price increased by 19%. While sales of tea declined by 26%, and its average value increased by 9%, according to the operator’s fiscal data “Taxco”.
While exchange-traded contracts in London and new York for the supply of coffee is slowly becoming more expensive: the coffee variety Arabica 4% to $ 1 per pound (about 450 grams) of Robusta by 2.3% to 1.2 dollar. Demand is growing after the lifting of the quarantine in the countries: open coffee shops, restaurants, grow online purchases.
According to Bloomberg, Brazil, the largest coffee producer in the world, has already sold 60% of the new harvest 2020. The share of the Arabica varieties account for approximately 70% of the market. Variety in addition to Brazil and is grown in Mexico and Indonesia. The Robusta variety is produced in Africa and some Asian countries.
According to the Russian Association of manufacturers of tea and coffee “rusteacoffee” for the past 10 years, the Russians began to drink more coffee by 97%. Last year, consumption of coffee amounted to 180 thousand tons.
this tea last year Russians drank 138,8 thousand tons (151,5 tons in 2018). According to experts, “the consumption pure tea dropped dramatically.” In addition, the growing popularity of herbal and fruit drinks.
last year, the Russians began to drink more chicory coffee. If in 2018 the share of soluble coffee accounted for 48%, and the grain is 52%, while last year the ratio was already up 44.7% to 55,3%.