Coffee farmers could be winners as prices spike and countries hoard during the pandemic

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Coffee farmers could be winners as prices spike and countries hoard during the pandemic
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Fears over disruptions to supply chains have led to some degree of coffee hoarding among consumers and countries — and that's given coffee prices a much-needed boost.

surged 8.8% in March, to an average of about $1.16 a pound. They climbed further to last settle at $1.2120 as of late Thursday during Asia hours.

The current coronavirus pandemic has led to supply disruptions — from manufacturing to transportation to retail — as lockdowns were imposed around the world., another major coffee exporter, could be temporarily disrupted because of its lockdown, according to the ICO. It explained that Colombia's usual harvest in April is likely to be affected by the containment measures as well as fewer migrant laborers from neighboring countries.

On the global situation overall, the ICO said: "Currently demand is estimated to exceed production ... disruptions to the supply chain both in shipping and harvesting could lead to temporary shortages in the supply, putting upward pressure on prices in the short term.". Some countries have stopped exports of some crops, while others have been stockpiling food supplies, to ensure they have enough for their own citizens.

Following an initial spike in demand, there will be proportionally less demand in the coming weeks and months as consumers draw down stocks kept at home."Retail- and supermarket-level data suggest that panic buying and stockpiling has led to increased consumer demand in some countries," the ICO said in a report last week.

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