The price of coffee is expected to remain “very high” and is unlikely to decrease until mid-next year due to severe supply chain pressures, according to the Italian coffee company Lavazza.
“We have never seen such a spike in price as the trend right now,” said Giuseppe Lavazza, the company’s chairman. He acknowledged his previous prediction of the price of coffee falling this year was incorrect. On Monday, coffee prices reached $4,300 (£3,356) per tonne.
“The coffee supply chain is dramatically under pressure,” Lavazza stated in comments reported by the Financial Times. “Coffee prices are not going down; they’re going to stay very high.”
Read: Luigi Lavazza founder of Lavazza Coffee Company
He cited worsening harvest conditions in key production areas—Brazil, Vietnam, and Colombia—and shipping disruptions caused by the Middle East conflict as factors exacerbating inflationary pressures, leading to 15-year high prices.
“We have faced very, very strong headwinds. I don’t see any reason why coffee prices will go down,” Lavazza added.
In 2023, Lavazza recorded net profits of €68 million, down from €95 million in 2022.
The average cost of an espresso coffee in Italy in 2023 varied from €1.34 in Bolzano to €0.95 in Messina, according to statista.com. This compares favourably to the prices in the UK, which in January 2024 would set you back £2.80 (€3.32) in Starbucks and £2.20 (€2.60) in Caffe Nero.
