Lavazza says UK coffee prices unlikely to fall for at least two years
AI Market Summary
Lavazza expects UK coffee prices to stay elevated for at least two years, citing Brazil and Vietnam supply disruptions (delayed harvest, heavy rains, quality risks), potential El Niño impacts, and increased speculative participation. With Arabica and Robusta sharply higher since 2021 and recently at multi-month highs, the news reinforces a tighter near-term coffee balance and sustained volatility, supporting elevated coffee-linked pricing and hedging demand.
Impact level
● Medium
Affected assets
NCCOCOFFEE2USD/USDT+0.29%
AI Insight · NCCOCOFFEE2USD/USDTAI Insight
▲ Bullish
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Lavazza said coffee prices in the UK are unlikely to ease for at least two years as supply shocks in Brazil and Vietnam keep markets tight. The company cited Brazil’s delayed harvest, heavy rains and quality concerns, alongside worries about this year’s El Niño and increased speculative activity. Arabica prices have risen 230% since 2021 and Robusta is up 325% over the same period, with both recently hitting multi-month highs.
