Coffee shortage or manipulation: an expert explains why Ukrainians should not panic
17 December 15:38
Recently, the media has reported news of a possible coffee shortage and a sharp rise in prices for this drink, which has caused concern among Ukrainians. However, economic expert Andriy Novak told Komersant ukrainskyi that the situation is much less critical than they are trying to make it out to be.
“I saw these news about coffee. It is possible that this is someone’s information campaign. So that those who have the opportunity – both restaurants and shops – can quickly buy large volumes of coffee while it is at a lower price. This is also possible,” the expert explained.
According to Novak, the situation with coffee on the global market is indeed tense due to high demand. However, it is incorrect to call it a shortage.
“There is no shortage of coffee in the world… we cannot say that it is a shortage. So far, a very high demand for coffee is being met. But the fact is that we have a lot of competition in the domestic market of Ukraine,” he added.
Competition keeps prices down
One of the factors that will not allow a sharp jump in coffee prices is the strong competition in the domestic market. The number of coffee shops and retail outlets offering coffee is growing in Ukraine, which automatically restrains possible price manipulation.
“Both in the market of retail outlets and in the market of coffee shops. Coffee shops, as we see, are already at every corner, on every street. Ukrainians consume much more of it. And this mutual competition will not allow anyone to multiply the price by two for no reason,” emphasizes Novak.
At the same time, the expert admits that there will be a certain increase in coffee prices. However, it will not be catastrophic.
“If there is a price increase, I think it will not be as catastrophic as 80% or 100%. But there will be a certain increase,” says Novak.
According to him, the main reason for the rise in coffee prices is not the situation on the global market, but inflationary processes in Ukraine.
“The reason for this is not the situation in this particular market, but the general increase in inflation in Ukraine, which is in the nature of the cost of production. After electricity tariffs doubled in a short period of time, excise taxes increased, fuel prices went up, and taxes also increased,” he explained.
Novak emphasized that these key factors increase the cost of goods and services in all markets, including the coffee market.
