Harvest losses

Pepper and coffee prices at record highs

Coffee harvest in Guatemala

(Bild: Robert Fröwein)

Spice prices on the commodity markets are currently rising rapidly. The price of pepper alone has almost doubled since the beginning of the year. According to the spice industry, this has been triggered by crop losses due to extreme heat and flooding, as well as increased freight costs due to the war in the Middle East.

For example, the extreme heat in Brazil has led to crop losses for pepper and coffee - a drop of 40 percent is expected for pepper. "In Vietnam, the largest producer of pepper, the harvest is forecast to be around 15 percent lower," said Erwin Kotányi, Chairman of the Association of the Spice Industry, on Monday.

Alongside Brazil, Vietnam is also one of the most important countries of origin for coffee. The droughts had led to record prices internationally and made the situation on the world market "difficult", said the managing director of Fairtrade Austria, Hartwig Kirner. Harvest yields are generally becoming increasingly uncertain due to the climate.

According to the Austrian Federal Economic Chamber, the laurel cultivation area in Turkey has still not recovered from the fires in 2021. The caraway price, which has risen by around 40 percent, is due to exceptional demand from India, "as the cumin harvest in this country was poor and caraway, with a similar taste, is added to cumin".

Garlic and paprika also more expensive
Peppers and garlic are also becoming increasingly expensive. The cost of herbs such as marjoram and basil grown in Egypt is currently at an all-time high. This is due to the extreme heat and the current switch in cultivation area from spices to wheat.

Another aspect is the increased freight costs for many spices. "The reason for this is that the transport ships have to sail around the Suez Canal, which adds around four weeks to transportation," said Kotányi and Katharina Koßdorff from the spice industry division of the Austrian Chamber of Commerce in a joint press release. The situation is unlikely to ease any time soon.