Rapid growth of natural coffee prices is awaiting Russia. At the New
York Commodity Exchange the price of a pound of coffee has grown up to 1.043
dollars. In a week the price has grown by 7% and in the last two months - by
40%. Thus, world prices for this exotic product have reached their high in
the last four years.
Russians who drink instant coffee have nothing to worry
about, but the lovers of natural coffee will have to come
down with their money. According to analysts, the reason of such a sharp
growth of prices is in the expected decline of coffee production. While
this year the world produced 114 million bags, the production in 2005 will
shrink to 108 million. In particular, Brazil, today's largest coffee
producer, will reduce its production by 5-8 million bags because of bad
weather. Another exporter - Columbia - can also lower its supply.
"The growth of wholesale price at the exchanges will have practically no effect at
the price of instant coffee", - Ramaz Chanturia, President of "Roschaikofe"
Association assured "Novye Izvestia" newspaper. The thing is that the
share of green coffee (which is the one sold at the world exchanges) in the
instant powder is no more than 15%. "Price oscillations of 4-7 or even
10-15% are too small and will therefore have practically no effect on the
price of the product", - Mr. Chanturia states. At the same time the growth
of the price for natural roasted coffee is predictable enough, market
experts think. The logic of their reasoning goes like that: coffee doesn't
grow in Russia, therefore the cost of production of natural coffee in our
country depends on the cost of raw materials. And if the world prices grow,
our producers just can't stay aside. So, by expert estimates, this
disappointing for coffee lovers price dynamics can be soon expected here as
It will affect relatively small number of people though. In Russia
about 80% of the population consume instant coffee, and our country is on
the first place in the world by this indicator. Only 38.7% of Russians buy
ground coffee and coffee grains. There are more of them in Saint Petersburg
and Moscow - 56.7% and 50% respectively.