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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