In Croatia, five kilograms of coffee are consumed per person annually, placing the country among the biggest coffee lovers in Europe. On average, we drink two cups a day. The trade war has led to a drop in coffee prices, so many might assume that a cup of coffee will soon cost less—but it’s not that simple, reports HRT.
More than 30 exhibitors gathered in one place at the Coffee Festival in Zagreb’s Lauba. A touch of exotic flair was brought by partner countries Morocco and Qatar.
But the question arises: due to global market events, is coffee becoming a luxury not everyone will be able to afford?
“Some coffees we used to buy regularly—Brazilian coffees—have increased in price by 300% over the past year. Prices have never been this high in history,” said Petar Ševič, a Slovenian expert in specialty coffee.
Gas prices in Europe sharply decline
Uncertainty in the market has been caused by three factors: a trade war, inflation, and a 30% decrease in Brazil’s coffee harvest, which is one of the world’s largest producers.
“Everyone is struggling to source raw materials. At the moment, that’s the biggest issue for coffee roasting companies. The price of a cup of coffee in a café ultimately depends on it. Roasters have to raise prices every month. There is such a shortage of green coffee,” said Carlo Rodrigo, representative of Fiorenzato.
Not just coffee—machines and grinders are more expensive too
Over the past five years, due to various geopolitical factors, the prices of coffee grinders and espresso machines have significantly increased.
“We’ve raised our prices by between 18 and 21 percent. That was the minimum needed to maintain stable operations with some profit,” highlighted Marco Butti, director of BFC.
For coffee lovers, the outlook isn’t promising, as not even the end of inflation or the trade war can solve the problem of poor harvests.
“If raw coffee prices keep rising, we’ll all have to raise our prices—and in the end, the final consumer who drinks coffee will pay. I think there will be fewer people in coffee shops and more and more drinking coffee at home,” added Ševič.
At this rate, Croatia’s average of two cups of coffee a day could soon become a thing of the past.