Will coffee prices continue uptrend?

Global coffee traders and roasters are facing a challenging time as prices surge to unprecedented levels, causing ripples across the industry. Adeyinka Tekenah, the CEO of Happy Coffee, sheds light on the recent price movements, the potential for local production, and value addition in West Africa. The coffee market has experienced a staggering 70% surge in prices since November last year, prompting concerns and reactions within the industry. Tekenah attributes this surge to the influx of new coffee drinkers, particularly from countries like China and India, who are driving up demand. With traditional coffee-growing regions like Brazil and Southeast Asia already stretched thin, attention is turning to regions like Africa for increased production. However, Tekenah highlights the lack of investment in countries like Nigeria, where the coffee industry remains largely underdeveloped. He emphasizes the need for strategic planning and investment to capitalize on the growing global demand for coffee. While countries like Ethiopia have made strides in coffee production, Nigeria's output remains minimal, accounting for less than 2,000 metric tons on the global scale. Tekenah advocates for increased investment in Africa's coffee sector to maximize its potential as a key player in the global coffee market. Despite challenges in production and supply chain development, Tekenah remains optimistic about the future of coffee in West Africa. Happy Coffee is focusing on local production and processing to meet the rising demand for Nigerian coffee. By partnering with local farmers and establishing new coffee farms, the company aims to enhance the quality and competitiveness of Nigerian coffee on the global stage. Tekenah stresses the importance of government support and a clear national policy for the coffee industry to drive growth and innovation. He calls for collaborative efforts between industry stakeholders and policymakers to establish a strategic roadmap for the sector's development. As Africa positions itself within the African Continental Free Trade Area, Tekenah underscores the importance of data collation and market understanding to attract investors and drive sustainable growth in the coffee industry. With increasing interest from international markets, Tekenah sees a bright future for Nigerian coffee but emphasizes the need for immediate action to harness its full potential. As the industry navigates the challenges posed by rising prices and supply chain disruptions, Tekenah's insights offer a roadmap for the coffee sector's sustainable growth and competitiveness in the global market.