Coffee prices may rise by 15% in Russia

Coffee prices in Russia may rise by 15% this year on the back of rising world prices. About it informed in a conversation with RIA Novosti on the sidelines SPIEF marketing director of Milfoods (a former subsidiary of Paulig) Mikhail Glukhov.

“Naturally, we expect growth to be minimal. We are trying to somehow create reserves, to produce as much as possible at the old prices … But in general, we can predict a smooth growth of 15% during the year,” he said.

According to Glukhov, coffee prices in Russia directly depend on prices in the main supplying countries. He recalled that India and Vietnam are the largest producers of Robusta, and Brazil – Arabica.

At the end of August 2022 WSJ informed about problems with the harvest in Brazil, which could exacerbate the shortage of international supplies and contribute to a new increase in prices. In the summer of 2021, the cost of Arabica coffee futures during trading on the ICE Intercontinental Exchange rose above $2 per pound (0.45 kg) for the first time since October 2014. This was due to fears of lower output after a sharp drop in temperatures in Brazil’s three largest coffee-growing regions – the states of Paraná, São Paulo and Minas Gerais. On November 30, futures for December delivery hit $2.33 a pound, the highest since November 1, 2011.

Finnish company Paulig closed a deal to sell the Russian part of the business in May 2022. The plant was taken over by Milfoods, but Paulig did not transfer its own brands and recipes to it. At the end of August 2022, the company start coffee production in Russia under the new Poetti brand.