Competitiveness and increasing demand challenge the impact of the global high coffee prices on the local market

Experts and specialists in the supply of coffee products stated that the height of competitiveness and the increase in demand in the UAE markets will limit the impact of the significant rise in the global markets recently, and reduces the rates of increases that are imposed locally.

They indicated, to «Emirates Today», on the sidelines of the activities of the “Coffee World 2025” exhibition, which recently finished its work at the Dubai World Trade Center, that the UAE markets are witnessing a growth exceeding 30% in demand for coffee since the beginning of this year, with the support of the boom sectors Tourism, business and population growth, which reduced the intensity of the effects of superior increases in coffee prices globally, with the competitiveness of supply to the local market, noting that global coffee markets will witness radical transformations this year, with the challenges of crop deficiency and supply chains.

While a study of the “Staysta” International Research Foundation showed that the expected estimates of coffee market revenues in the Emirates this year amount to 22.47 million dollars (82.4 million dirhams) with an annual growth exceeding 11%.

“The prices of global coffee have been recorded since the beginning of this year record heights, especially for (Ariba) pills, and with rates that may reach in their entirety to about 100% compared to the similar period last year,” said the CEO of the Krishnash Foundation for the Trade and Supply of Coffee, Yusril Digava. He pointed out that “the world’s coffee markets will witness radical transformations this year, with a lack of crops in a number of countries and some challenges of supply chains.”

He explained that «the UAE markets are witnessing an increase exceeding 30% in demand for coffee products, with the support of tourism and activities and businesses, which in turn raised the competitiveness of supply to local markets, and in turn limited the influence rates for global prices that are likely to take time to appear in retail markets Local, but in much lower proportions than global heights. ”

The head of the Colombian Coffee Company, Franch Arikon, said that “this year has witnessed radical transformations from the global coffee markets, began with great record heights, and at different rates of coffee types, due to the challenges of supply chains in a number of regions of the world, and the effects of climate variables on Other coffee crops, “noting that” these transformations and price increases have reflected on the decline in the supply of coffee. “

She explained that “the increase in demand and competitiveness in the Emirati markets will reduce the rates of increases and effects on the supply prices of coffee, which may take time to show their repercussions in the local markets”, pointing out that “suppliers will resort to reducing profit margins, so that they can maintain shares Sales, and companies operating in the local retail market will in turn reduce any rates of increases, to keep pace with the intensity of competitiveness in the markets.

“The prices of global coffee have recorded successive heights during the recent period, but their effects on the local market will take time until the consumer feels, and it will be less severe, with the support of high competitiveness and increasing the demand that A growth of up to 35% since the beginning of this year, “expected that” increases in the local market reach about 15% due to global heights. “

The director of the “Sawat” company to supply and roast coffee, Al -Bara Al -Harbi, pointed out that “it is difficult, in light of the high demand and competitiveness in the local markets, that global increases rates be imposed, with companies going to maintain their market sales, and thus will work to reduce The rates of increases, in the event of the inability to absorb them, and work to delay the periods of their application as much as possible.

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High demand

“The local coffee markets are witnessing a remarkable increase in demand and growth in competitiveness, which its indicators appeared through the great demand to participate in the activities of the last session of the World Coffee Exhibition With increasing the competitiveness of international companies to go to supply to the state and region markets through the exhibition platforms in Dubai.

. 82.4 million dirhams expected revenues for the coffee markets in the Emirates this year.