Coffee, Albania’s most popular drink, has increased in price by some 20% over the last six months, according to industry stakeholders who are concerned it will harm businesses and consumers alike.
Enri Jahi, the chairman of the Bar-Restaurant association, told Monitor that a cup of coffee has increased in price by 10-20% depending on the type of coffee.
This price increase is due to multiple factors, including inflation, the war in Ukraine, but also the climate change which is harmful and impacting production. Coffee prices have already been impacted by weather-induced supply shortages and are expected to increase further next year. Coffee such as Arabica and Robusta has already increased by 17% and 5%, respectively, since 2021.
Arabica prices topped $6 a kilo in February and June, the highest since May 2011.
The World Bank said the increase was driven by weather-related issues in Brazil, which hampered production. The production of coffee is expected to increase 4.5% over the next 12 months, while consumption will reach pre-pandemic levels by 2023.
According to INSTAT, beverage prices in Albanian cafes increased by almost 6% during June, the highest increase since 2007, when data was first recorded.
Market players warn that the price increase is expected to continue, influenced by the rise in costs and the lack of labour force, which is forcing the increase in wages.