A long queue lines up outside a vintage Italian coffee cart on London’s Coo Bridge. Runners, tourists, and dog walkers all love to start the day with a coffee in hand. But cart driver Anthony Duckworth has his sights set more on prices than customers. Iced Latte is available here for 4.5 pounds (580 rupees). His concern is that the price may not reach 5 pounds (Rs 644). This is a concern for the entire global economy. Today, the climate crisis, trade war and changing consumer culture are all visible in a cup of coffee. The world’s coffee rests primarily on two beans – Arabica and Robusta. Arabica grows in the cool hills of Brazil, Ethiopia and Kenya, while caffeine-rich robusta is dominated by Vietnam. But in the last two years the weather has caused major damage to both the crops. As a result, the price of Arabica beans went from an average of $1.2 per pound to over $4 (Rs 384). Coffee industry veteran Guiseppe Lavazza believes relief is not going to come soon. Meanwhile, US tariffs deepened the crisis. The Trump administration imposed tariffs of 46% on Vietnam, 32% on Indonesia and 50% on Brazil. In America, the price of ground coffee became costlier by 17% and instant coffee by 25%. Ultimately, after growing resentment, coffee had to be relieved from the tariff. But the trouble did not end here. Due to Houthi attacks in the Red Sea, ships bound for Europe from Vietnam are now taking a long detour to Africa. The journey extended by 4,000 miles. On top of this, under the new rules of Europe, coffee farmers will have to prove that it was not grown by cutting down a lot of forest. Purchasing even when the price increases, that’s why the price does not come down. Interestingly, despite being expensive, the demand for coffee did not decrease. The picture is clear – supply chains are in crisis, climate change and geopolitics are driving up prices, but the world’s love of coffee remains steadfast. Now coffee is not just a drink but has become an ‘experience’. The Chinese company is challenging Starbucks on the basis of coffee data and technology, while Britain’s Greggs has become the largest coffee seller by selling cheap coffee through automation.
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Coffee now one of the most expensive habits: In 2020, the coffee packet available for $ 4.3 reached $ 9.6, but the demand did not cool down.
