NYN | News
American newspaper Politico has highlighted the noticeable rise in coffee prices across Europe, a consequence of geopolitical disruptions, including attacks by the Sana’a government forces on ships associated with or headed to Israel in the Red Sea, in support of Gaza.
The report pointed out that these attacks by the Houthis in the Red Sea have forced commercial vessels to take longer and more expensive shipping routes, adding to the cost burden on coffee producers amid adverse weather conditions and new regulations imposed by the European Union.
As a result, according to *Politico*, European consumers have witnessed an increase in coffee prices, with the price of a typical espresso cup in Italy now exceeding €1.20.
The newspaper quoted commodity analyst Oran Van Dort from Dutch company Rabobank, who stated that the Houthis in Yemen have demonstrated advanced capabilities in their attacks, including the use of unmanned boats, causing significant disruptions in global coffee supply chains. Van Dort emphasized that the Houthis “have increasingly shown they can cause real damage.”
Van Dort also noted that the impact of these disruptions has been profound, with shipping routes forced to detour around the Cape of Good Hope, leading to substantial increases in transit times and costs. This route change has led to a significant rise in shipping costs, with a 150% increase on the Asia-Europe route, directly affecting the supply of coffee beans from major producers like Vietnam and Indonesia.
*Politico* further noted that the ongoing war in Ukraine and climate change have compounded the situation, with the war disrupting fertilizer supplies and raising energy costs, while adverse weather conditions have reduced crop yields in key countries like Brazil and Vietnam.
The newspaper concluded by noting that these combined factors have created a “perfect storm” that has severely hit the coffee market, with expectations that price pressures will continue in the coming period.
