The price of Colombian smooth arabica coffee closed Friday at $3.2293 per pound, its highest price for 34 years according to the International Coffee Organization (ICO), Portafolio reported Monday.
This peak price was recorded two days after the $3 per pound barrier was broken on Wednesday. The ICO and traders attributed the high price to a shortage of coffee, as well as technical factors and an increase in the price of commodities, fueled by the weak dollar.
Whilec it is of note that the price paid by importers in Hamburg and New York includes shipping and insurance, the director of the ICO, Jose Sette, highlighted that the price is the real, prevailing price of the day, governed by the global market.
The record for smooth arabica was set at $3.32 per pound on April 14, 1977.
Colombia grows 80% of the world’s smooth arabica coffee with the bean also produced in Tanzania and Kenya.
The price of Colombian coffee has risen by $0.581 during the year, translating into good prices for the internal market.
In March Colombia’s export of coffee rose by 53% with 884,000 sacks of 132lb exported compared to 576,000 sold in the same month last year.