ALTIDONA The cost of coffee (Robusta variety) is at an all-time high. And the bullish trend does not seem to have ended. Even Perfero Caffè of Altidona, which had its list prices blocked from 2022, starting from last April 1st, was forced to adjust them, with a slight increase. Because in addition to the record rise in the price of coffeethe company also suffers from the increase in transport costs which, due to the crisis Red Seahave quadrupled compared to 2 years ago.
The surge
«We don’t know exactly the reason for this surge in coffee prices. In the last year the price of Robusta has doubled” states Daniele Pioppi, who together with his partner Simone Meriggi, founded the company in 2010. Perfero Caffè remains one of the few Italian companies to have around thirty varieties of coffee available, coming from Worldwide. Some, a small part in terms of quantity, come from Guatemala where the company owns a plot of land. Pioppi claims that every year a decline in coffee production is announced due to parasites and climate change but then, punctually, this does not occur. So the Fermo entrepreneur thinks that the increase in the price of raw materials is the result of a speculative phase. Pioppi explains how the world coffee trade is dominated by two varieties: Arabica, mainly produced in Brazil, and Robusta, which comes from Vietnam. The latter is less expensive, easier to toast and is the most widespread in Italy.
«Until a year ago, Robusta cost half as much as Arabica. Now its cost exceeds some varieties of Arabica” specifies Pioppi. What are the repercussions for Perfero Caffè? «We kept the list prices unchanged from 2022 until March 31st. Then we were forced to apply a touch-up” confesses Pioppi. Perfero Caffè generates 85% of its revenues outside Italy. In particular Hungary, the Netherlands, Estonia and Miami (USA). «We note that both in Italy and abroad our customers report a lack of liquidity. Collecting on time is becoming more and more complicated” observes Pioppi himself. What consequences for the coffee-loving citizen? «For a bar, the cost of the raw material, I believe, affects between 20 and 25% of the price of a cup of coffee. Fixed costs linked to the rent of premises, electricity, personnel and others have a greater impact. Furthermore, the rise in coffee comes at a time when people find themselves with less money in their pockets” reflects Pioppi.
The consumption
«Have the increases caused coffee consumption to fall? No, but they have changed. There has been an increase in so-called single-portion coffee (the one in pods/capsules) which boomed during the pandemic when you couldn’t go to the bar. But beyond the sustainability aspect linked to the disposal of pods – concludes Pioppi – it would be enough to do the math to realize that single-portioned coffee is much more expensive than purchasing it in beans and manually grinding it at home”.
