Coffee prices fall 25%

JEDDAH: Coffee and cardamom prices in local markets have witnessed a decline over the past four months, according to market leaders.
"Coffee prices fell at a rate of between 20-25 percent in global markets throughout the past four months, which has been reflected in the local market, with prices dropping by 25 percent during the same period," Salem Bin Mahfouz, a Saudi merchant, told Arab News. The price of coffee from Abyssinia (Ethiopia) was SR670 for a 50 kg pack, which is sold today in the local market for SR550.
"The fear prevails among the global markets that Brazil's crop each year might be huge and will produce large quantities, so prices start to fall in preparation for this, which has been reflected in the local markets," he said.
He explained that most of the coffee imports to Saudi Arabia come from Abyssinia, noting that the prices will continue to fall, according to the Brazil’s season announcement during this month.
"The Brazilians say that the crop this year is similar to last year's crop or is perhaps even less, and therefore global stock prices have stalled for two weeks between 125 points and 135 points," Bin Mahfouz said.
Another coffee dealer, who preferred anonymity, said: "The demand for coffee in the local market is very high, and the price has fallen to SR120 for a wholesale bag weighing 50 kg, which has influenced other food items. Wholesalers sold their stocks a month ago and, currently, there is a great demand for retailers due to the low prices."
Bin Mahfouz revealed that the favored types of coffee for the Saudis are Al-Harari and Al-Lughmati, adding that the consumption ratio between the two is two thirds for Al-Lughmati and a third for Al-Harari, due to the high price of the latter.
On the other hand, cardamom prices also witnessed a decline of almost 20 percent, where a kilogram was sold for $ 16 last February, and today is sold for $ 2.50.
He pointed out that the best types of cardamom come from Central America, which is the Super Jumbo variety, noting that Indian cardamom (Farhana) has also witnessed a decline in prices recently.
Abu Abdullah, a 55-year-old citizen, expressed his satisfaction over the decline in coffee prices lately and said: "We cannot dispense with Arabic coffee, as it is an authentic inheritance and a symbol of Arab hospitality for decades. The decline in prices is good and we hope it continues, because we have become used to seeing such a rise in prices due to the season at this time of year."