Experts advise to stock up on coffee
Experts are predicting higher prices for coffee, despite the decline thereof on the global market. The reasons, according to the coffee expert Serhiy Reminny, are domestic - namely, the problems coffee companies have with customs, informed UNN.
According to the expert, nearly all suppliers, even multinational companies pay double customs tariffs which affects the situation on the Ukrainian market of coffee. The importers compensate double tariffs paid at customs with the price of the product on store shelves. And the market reacts to price "experiments" with decline in sales.
According to Reminny, the difference between cheap and expensive varieties of coffee is 3 to 10 dollars on average. Thus, if more expensive coffee grows in price by 10%, the cheap coffee will drow by 30%. So, there will be problems with cheap varieties of coffee. Thus, the expert said, the growth will be exactly where it is most undesirable and will amount to 20%.
UNN also reminds that in November the price of Arabi Kuna on commodity exchanges fell to a record for the last 2.5 years level - 144.5 cents per pound.
4 September 2016 14:19