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Now, if you're watching us in Europe,
you may well be enjoying a very strong
coffee. It's early morning and a good
cup of coffee is required. But is our
traditional pickeruppper in danger of
becoming a luxury as prices sore? Well,
like other foods, the cost of coffee has
gone through the roof on international
markets. The price of coffee, especially
Arabica, has seen dramatic increases. In
some cases, going up by 70% over the
past year. Jason Archie Ain Pong from
the Fair Trade Foundation told me why
farmers are unable to keep up with
demand.
It's a supply and demand issue, right?
Um but fundamentally with farmers,
farmers are just unable to supply the
beans that we so greatly need, right?
For years of underpayment, um they've
been unable to invest in their farms.
And then you couple that with the fact
you now have climate change which is
causing real devastation across many
farms. You've now got a recipe for
disaster. And so the demand has remained
high. Consumers were still drinking our
coffee, but farmers themselves are just
unable to supply the beans because of
the issues that they face right now on
the ground.
So consequently, the price of coffee is
is going up and up and and America, I'm
assuming, are huge consumers and for
them they're seeing even higher prices
because of tariffs.
Rightly so. Rightly so. I think there
are a range of um factors as well sort
of geopolitical tensions which are
causing challenges across shipping
routes in terms of supplying coffee out
of regions such as East Africa. But then
also when we look at factors such as um
the tariffs as you mentioned right
Brazil is arguably one of the most the
leading um exporters of Arabica coffee
also robuster as well and you know the
recent imposition of tariffs on on the
nation has caused real volatility and
also uncertainty in the market and that
creates real significant challenges as
well on the pricing of coffee as well
and with prices rising significantly and
you just explained why that is. Does
that mean the choice to go sustainable
is less likely?
In fact, you know, the choice to go
sustainable is even more so important as
we see when we look at pricing at the
moment and the challenges we're facing.
The issue is mainly because farmers have
not been invested in. They have been
unable to invest in their farms and are
now tackling real key issues on the
ground. You know, recent studies have
shown that by 2050, nearly 50% of the
global surface area currently used for
coffee farmer coffee farming may no
longer be suitable.
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