EBN-Because coffee costs have climbed “, the Adulterated coffee has made its way to the Brazilian and European markets.
Cuban authorities recently dismantled a clandestine coffee factory in the municipality of Marianao, Havana, that was producing it and packaging it in well-known brand containers at prices considerably lower than the actual price of real coffee. This followed a significant increase in coffee prices in Colombian markets.
The Director Cubano website reported that the factory was manufacturing coffee reflected and packaging it under well-known black market brands, sparking outrage among companies that discovered it.
The website noted that the coffee reflected the serious crisis facing the country. Many social media users expressed concern about the involvement of government officials or employees in the trade of packaging materials used by the factory.
Some accused officials at packaging plants of selling the containers for use in illegal activities, while others pointed to weak state control over agricultural production as the root of the problems.
The dismantling of this clandestine factory is part of the Cuban government’s campaign against corruption and drug trafficking. However, the island’s residents still face difficulties accessing basic goods, leaving a general sense of frustration.
It prices hit an all-time high on the New York Stock Exchange, closing at $4.21 per pound, the longest streak of continuous gains ever. The historic price surge threatens to raise costs for producers and consumers, according to Colombiano newspaper.
Rises in 2025 possible
FAO said that it export prices may rise further in 2025 if major growing regions experience further significant supply reductions.
Key factors behind the recent price increase include limited export quantities from Viet Nam, reduced output in Indonesia, and adverse weather impacting coffee production in Brazil.
In Viet Nam, prolonged dry weather caused a 20 percent drop in coffee production in the 2023/24, with exports falling by 10 percent for the second consecutive year. Similarly, in Indonesia, coffee production in 2023/24 declined by 16.5 percent year-on-year on the back of excessive rains in April-May 2023 that damaged coffee cherries. Exports dropped by 23 percent.
In Brazil, dry and hot weather conditions prompted successive downward revisions to the 2023/24 production forecast, with official estimates shifting from an anticipated 5.5 percent year-on-year increase to a 1.6 percent decline.
