Pandemic restrictions pushing coffee prices up and undermining production – dpa international

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Sign outside a Dublin coffeeshop. Cafes in Ireland have been restricted to takeaway services, and more recentky, offering outdoors dining, since December 2020 (Simon Roughneen)

Sign outside a Dublin coffeeshop. Cafes in Ireland have been restricted to takeaway services, and more recentky, offering outdoors dining, since December 2020 (Simon Roughneen)

DUBLIN — Even as the coronavirus pandemic has receded in some parts of the world, coffee drinkers might not be able to sip in peace anytime soon: According to a recent analysis, coronavirus restrictions have likely spurred a crisis across the global coffee industry.

In a study published by the National Academy of Sciences in the US, researchers led by academics from Rutgers University said “socio-economic disruptions” since the start of the pandemic “are likely to drive the coffee industry into another severe production crisis.”

Lead author Kevon Rhiney warned of “serious implications for millions of people across the globe” if there is turmoil in the sector.

Retailers and consumers could be affected, as well as the estimated 100 million people, mostly in low-income countries, who depend on coffee for their livelihoods.

In keeping with a recent jump in food price inflation, global coffee bean prices hit a five-year high earlier in June, prompting fears that rising costs would be passed on to consumers.

While demand for coffee is expected to pick up with the easing of restrictions, according to the International Coffee Organization (ICO), high shipping costs and a related shortage of containers “remain a major concern to trade.”

Dutch bank ING said in June that rising shipping costs were in part due to the “disruptive effects” of lockdowns.
The ICO said earlier that the pandemic” has affected labour supply, either directly due to illness or indirectly as the movement of farm labourers and migrant workers is limited by social distancing measures, lockdowns and travel restrictions.”
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