Coffee prices have skyrocketed for various reasons. Among them, the low production due to climate change, the logistical problems of the pandemic, generalized inflation and the war in Ukraine. The latter has considerably reduced access to inputs such as inorganic fertilizers, which has not only increased the costs of coffee production, but has also significantly reduced the profit margin of coffee farmers. Russia is the world's biggest fertilizer exporter, but its war with Ukraine has disrupted shipments and pushed up prices for natural gas, a key ingredient in fertilizer manufacturing. Ammonium nitrate and urea, the two main sources of nitrogen fertilizer, are the most widely used fertilizers in the world. Fertilizer prices had already more than doubled in the last 18 months, affecting coffee growers around the world.
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This month we have received many messages from roasters asking when the new coffees we have selected in Peru and Indonesia will be arriving to our Barcelona warehouse. And the answer is not easy to articulate.
We have recently read that due to the logistical problems that conflict the world these days, the American multinational Amazon is innovating in its logistics supply chain by reforming twin-engine aircraft to adapt them for cargo and leasing container ships to be able to fulfil their orders and avoid the traffic jams that we are seeing in all the ports of the five continents since last year. |
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