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Cost of pleasure...

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 well.

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.


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