By JAMES KILA
THE price of coffee, occasionally referred to as “green gold”, peaked at a record high a few days ago, causing frenzy and excitement amongst coffee industry stakeholders in the country.
Coffee factories, processors and road-side buyers in major Highlands coffee producing areas like Goroka, Kainantu, Kundiawa, Mt Hagen, Minj and Banz have increased their prices.
Figures from the New York coffee market earlier this week showed the price peaked at US$1.6010 (K4.72) per pound and US$1.56 (K4.59) per pound last Monday and Tuesday, respectively. These figures were a record high over the last two decades for the local coffee.
Coffee Exporters Council chairman and PNG Coffee Exports manager John Edwards said the record increase in coffee price for local coffee has been attributed to the movement of capital funds to agricultural commodities in the international markets due to fears over the looming recession in the US.
Mr Edwards told The National the recent big price jump had nothing to do with drought, frost or flooding in major coffee producing countries which normally triggers price increases.
“The recent huge increase in price was primarily due to investment funds participation in the New York features market,” Mr Edwards said.
The National has noticed that road side prices in Goroka was between K4.50 and K4.60/kg, which coffee industry experts say was very encouraging for smallholder farmers.
Mr Edwards said major investors with billions of capital investment were turning to invest in coffee futures market due to speculation of recession in the US.
Because of this, prices of coffee and other agricultural commodities are seeing an increase in price
However, Mr Edwards said coffee price is volatile and could change any time.
He said it is a rewarding news for local farmers because they are getting good income from the sales of their coffee.
Meanwhile, chief executive officer of the Coffee Industry Corp Ricky Mitio told The National yesterday that farmers must take advantage of the price increase by harvesting and selling their coffee because there is a better income to make.
He said although it is still off-season for coffee, farmers must take care of their gardens now by rehabilitating their trees so that when such surge in price occurs, they have something to benefit from.