1 00:00:02,440 --> 00:00:10,080 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, Coffee Taste. 2 00:00:09,720 --> 00:00:15,160 Speaker 2: Every flavor, Old Coffee, buy Experts for experts. It's the 3 00:00:15,200 --> 00:00:18,800 Speaker 2: world's most popular drink, but it's not getting any cheaper. 4 00:00:19,160 --> 00:00:22,919 Speaker 2: Coffee Buyers are paying record prices for the Crown coffee 5 00:00:22,920 --> 00:00:25,600 Speaker 2: prices and Robusta hiasins the nineteen seventies. 6 00:00:25,640 --> 00:00:27,760 Speaker 3: We are going to still consuming a cup of coffee 7 00:00:27,760 --> 00:00:30,400 Speaker 3: every morning, almost no matter what the price is. 8 00:00:30,720 --> 00:00:34,239 Speaker 2: In Uganda, farmers received a record seven thousand shillings per 9 00:00:34,360 --> 00:00:37,800 Speaker 2: kilo of robusta beans. That's around one dollar and eighty 10 00:00:37,880 --> 00:00:41,720 Speaker 2: nine cents. But it's not all good news. This windfall 11 00:00:41,800 --> 00:00:44,200 Speaker 2: comes at a time of a cost of living crisis 12 00:00:44,520 --> 00:00:47,480 Speaker 2: and has made the farms an obvious target for criminals. 13 00:00:47,880 --> 00:00:51,320 Speaker 2: They're using dogs to guard plantations, they're using bees. 14 00:00:51,479 --> 00:00:55,160 Speaker 4: This is two stop thieves from snatching those unharvested beans 15 00:00:55,200 --> 00:00:57,040 Speaker 4: straight from the trees under the cover of darkness. 16 00:00:57,120 --> 00:01:00,400 Speaker 2: On today's Next Africa Podcast, we'll look at the impact 17 00:01:00,440 --> 00:01:03,520 Speaker 2: the rising cost of coffee is having and whether this 18 00:01:03,760 --> 00:01:10,080 Speaker 2: unprecedented crime wave is actually here to stay. I'm Jennifer 19 00:01:10,160 --> 00:01:13,520 Speaker 2: Zabasajob and this is the Next Africa Podcast. 20 00:01:13,240 --> 00:01:15,399 Speaker 4: Bringing you one story each week from. 21 00:01:15,280 --> 00:01:18,399 Speaker 2: The continent, driving the future of global growth with the 22 00:01:18,440 --> 00:01:25,000 Speaker 2: context only Bloomberg can provide. So joining us on the 23 00:01:25,040 --> 00:01:28,039 Speaker 2: podcast this week is Mumby Guitao. She is a soft 24 00:01:28,040 --> 00:01:31,880 Speaker 2: commodities reporter covering all things commodities globally. 25 00:01:32,360 --> 00:01:34,200 Speaker 4: Mumby, how are you? Thanks for joining us. 26 00:01:34,360 --> 00:01:36,000 Speaker 1: I'm very well. Thank you for having me. 27 00:01:36,920 --> 00:01:39,000 Speaker 2: Yeah, it's been a busy year for you, I think, 28 00:01:39,040 --> 00:01:41,960 Speaker 2: to say the least, we were just talking about how 29 00:01:42,280 --> 00:01:45,040 Speaker 2: it started off with coco for you. Now it's coffee 30 00:01:45,480 --> 00:01:48,000 Speaker 2: maybe pink the picture for us right now, about what 31 00:01:48,160 --> 00:01:50,920 Speaker 2: exactly is going on and what we should focus on 32 00:01:50,960 --> 00:01:53,080 Speaker 2: when it comes to coffee right now. 33 00:01:54,240 --> 00:01:57,000 Speaker 1: It's been an interesting market for me. As you said, 34 00:01:57,000 --> 00:02:00,800 Speaker 1: we started off with the cocoradi and then we've moved 35 00:02:00,840 --> 00:02:03,840 Speaker 1: on to the coffee market. And it's important to know 36 00:02:03,920 --> 00:02:06,920 Speaker 1: that these are all the luxurious things that everyone of 37 00:02:07,040 --> 00:02:09,440 Speaker 1: us likes to have. Every once in a while, the 38 00:02:09,480 --> 00:02:14,160 Speaker 1: coffee market has seen significant weather challenges, particularly in Vietnam. 39 00:02:14,200 --> 00:02:16,760 Speaker 1: So we have two types of coffee. We have the 40 00:02:16,880 --> 00:02:20,040 Speaker 1: robusta and we also have the Arabica beans. The Arabica 41 00:02:20,120 --> 00:02:24,080 Speaker 1: beans are what we consider the premium, smooth, flavored beans 42 00:02:24,080 --> 00:02:27,200 Speaker 1: that are favored by the likes of Starbucks or probably 43 00:02:27,280 --> 00:02:29,960 Speaker 1: your favorite coffee chain. And then we have the likes 44 00:02:30,000 --> 00:02:33,760 Speaker 1: of robusta beans, which is considered cheaper and considered a 45 00:02:33,840 --> 00:02:37,760 Speaker 1: little more acidic, but has a higher caffeine content. Now 46 00:02:37,840 --> 00:02:41,360 Speaker 1: the shock that we've seen in supply is in robusta beans. 47 00:02:41,480 --> 00:02:45,080 Speaker 1: Vietnam is the largest producer of these beans, and earlier 48 00:02:45,120 --> 00:02:48,120 Speaker 1: this year they had bad weather, so we've seen production 49 00:02:48,280 --> 00:02:49,720 Speaker 1: in that country go down. 50 00:02:50,160 --> 00:02:50,600 Speaker 4: This year. 51 00:02:50,639 --> 00:02:54,120 Speaker 1: We started with robusta beans at about two seven hundred 52 00:02:54,160 --> 00:02:57,840 Speaker 1: dollars and right now we are looking at five three 53 00:02:57,919 --> 00:03:00,160 Speaker 1: hundred dollars, so that has been about an eight two 54 00:03:00,200 --> 00:03:05,040 Speaker 1: percent increase introbusta beans. That has made coffee very expensive, 55 00:03:05,240 --> 00:03:08,639 Speaker 1: especially the instant type or your blends that are used 56 00:03:08,639 --> 00:03:11,320 Speaker 1: in espressos. So that's why you think probably the cost 57 00:03:11,360 --> 00:03:12,799 Speaker 1: of your coffee go up this year. 58 00:03:13,320 --> 00:03:15,080 Speaker 2: And maybe not to put you on the spot, but 59 00:03:15,120 --> 00:03:18,000 Speaker 2: I do remember when we talked about cocoa. You don't 60 00:03:18,040 --> 00:03:21,640 Speaker 2: necessarily consume coco too much when it comes to coffee. 61 00:03:21,680 --> 00:03:24,000 Speaker 2: I mean, is this a mumby favorite or are you 62 00:03:24,160 --> 00:03:26,240 Speaker 2: just very interested in covering it? 63 00:03:26,520 --> 00:03:28,960 Speaker 1: I hate to say, but I'm more of a tea drinker. 64 00:03:29,160 --> 00:03:32,080 Speaker 1: I'm trying to get into coffee just so that I 65 00:03:32,200 --> 00:03:35,880 Speaker 1: know how to taste and identify good coffee. But I 66 00:03:36,000 --> 00:03:38,480 Speaker 1: like my tea, But I'm now starting to get into coffee. 67 00:03:38,480 --> 00:03:41,120 Speaker 1: But I'm not those coffee snobs that won't take a 68 00:03:41,160 --> 00:03:42,720 Speaker 1: particular type of coffee. 69 00:03:42,960 --> 00:03:45,200 Speaker 2: And I think all of us know coffee is very 70 00:03:45,280 --> 00:03:47,520 Speaker 2: precious to people, right and the taste and where it 71 00:03:47,520 --> 00:03:51,000 Speaker 2: comes from. And so maybe you touched a bit there 72 00:03:51,040 --> 00:03:54,840 Speaker 2: on some of the biggest growers globally, maybe you can 73 00:03:54,880 --> 00:03:57,920 Speaker 2: tell us more about that where are these beans coming 74 00:03:57,960 --> 00:04:01,000 Speaker 2: from that people are willing to spend a lot of 75 00:04:01,080 --> 00:04:03,000 Speaker 2: money to get their cup of coffee. 76 00:04:03,160 --> 00:04:07,040 Speaker 1: Initially, as I mentioned, Vietnam is our biggest producer of 77 00:04:07,240 --> 00:04:11,440 Speaker 1: robusta beans, but globally, Brazil is the biggest producer of 78 00:04:11,560 --> 00:04:16,159 Speaker 1: both Arabica and Robusta beans, so cumulatively it's the biggest 79 00:04:16,240 --> 00:04:19,479 Speaker 1: exporter and producer of coffee beans. But we also have 80 00:04:19,600 --> 00:04:24,839 Speaker 1: the likes of Ethiopia, Uganda, Indonesia, India, Columbia, Honduras, which 81 00:04:24,839 --> 00:04:28,880 Speaker 1: are also very important to the supply of coffee in 82 00:04:28,920 --> 00:04:31,159 Speaker 1: the world. But most times we pay a lot of 83 00:04:31,200 --> 00:04:34,400 Speaker 1: attention to what is happening in Brazil and what is 84 00:04:34,440 --> 00:04:36,280 Speaker 1: happening in Vietnam, and. 85 00:04:36,279 --> 00:04:39,120 Speaker 2: So then what was the catalyst to where we are now, 86 00:04:39,120 --> 00:04:43,800 Speaker 2: to where we're seeing prices future prices at levels we 87 00:04:43,839 --> 00:04:46,000 Speaker 2: haven't seen in quite a while, and that's with both 88 00:04:46,040 --> 00:04:46,880 Speaker 2: of these beans. 89 00:04:47,120 --> 00:04:50,520 Speaker 1: Yes, so initially it started with Robusta. That's where we 90 00:04:50,680 --> 00:04:54,200 Speaker 1: saw the first shock. It was not widely anticipated that 91 00:04:54,240 --> 00:04:57,599 Speaker 1: we would have lower production in Vietnam, but they had 92 00:04:57,720 --> 00:05:01,279 Speaker 1: bad weather, they had dropt, and then that obviously led 93 00:05:01,320 --> 00:05:04,240 Speaker 1: to a decline in production, and that's kept the market 94 00:05:04,360 --> 00:05:07,679 Speaker 1: quite heated, and even this year, we're expecting the country 95 00:05:07,720 --> 00:05:11,000 Speaker 1: to get even less production because they had dropped earlier 96 00:05:11,000 --> 00:05:13,320 Speaker 1: in the year. Now the world is now paying so 97 00:05:13,440 --> 00:05:16,960 Speaker 1: much more attention to Brazil, where there's also dry weather 98 00:05:17,320 --> 00:05:19,400 Speaker 1: and the trees that are meant to be flowering, but 99 00:05:19,440 --> 00:05:22,320 Speaker 1: the rain is not coming down yet. So anything that 100 00:05:22,400 --> 00:05:26,000 Speaker 1: is weather related causes the market to be on the edge, 101 00:05:26,040 --> 00:05:29,760 Speaker 1: and the market is very sensitive to dry weather, to frost, 102 00:05:30,040 --> 00:05:32,880 Speaker 1: to lots of rain. So that's why we are seeing 103 00:05:32,920 --> 00:05:37,360 Speaker 1: the market rarely to thirteen year highs for Arabica and Robasta, 104 00:05:37,440 --> 00:05:40,360 Speaker 1: to records that we've not seen since the nineteen seventies. 105 00:05:41,600 --> 00:05:44,240 Speaker 2: Wow, And I wonder, as somebody who's covering this closely, 106 00:05:44,640 --> 00:05:49,040 Speaker 2: what's been your perspective and watching these prices continually tick up? 107 00:05:49,240 --> 00:05:51,200 Speaker 2: It was it inevitable just given a lot of the 108 00:05:51,200 --> 00:05:53,400 Speaker 2: weather related events that we've been seeing. 109 00:05:54,040 --> 00:05:57,040 Speaker 1: Some of it was inevitable because it's hard to predict 110 00:05:57,080 --> 00:05:59,000 Speaker 1: the weather. I think that's one of the things that's 111 00:05:59,279 --> 00:06:02,679 Speaker 1: very hard to predicting this life. So in one week 112 00:06:02,760 --> 00:06:04,560 Speaker 1: we are looking at a frost, the other week we 113 00:06:04,600 --> 00:06:06,600 Speaker 1: are looking at heat waves. The other week we are 114 00:06:06,600 --> 00:06:10,520 Speaker 1: looking at possible typhoons or drought. In one region, the 115 00:06:10,600 --> 00:06:14,799 Speaker 1: weather has been oscillating between two extremes, and that's always 116 00:06:14,920 --> 00:06:18,000 Speaker 1: very hard to predict how a crop will behave if 117 00:06:18,000 --> 00:06:20,880 Speaker 1: it's in every coast and Ghana where we have coco, 118 00:06:21,120 --> 00:06:24,360 Speaker 1: too much rain is bad, but very hot weather is 119 00:06:24,400 --> 00:06:28,040 Speaker 1: also bad. So plants require such a delicate balance of 120 00:06:28,240 --> 00:06:31,800 Speaker 1: just optimum weather, and if that is not available, then 121 00:06:31,800 --> 00:06:34,160 Speaker 1: we have the supply shocks that we are seeing currently. 122 00:06:34,560 --> 00:06:37,000 Speaker 2: And before we go to the break, maybe you can 123 00:06:37,040 --> 00:06:40,680 Speaker 2: explain how you're mentioning how this affects producers. 124 00:06:40,800 --> 00:06:44,080 Speaker 4: How does this then trickle down to the consumer. 125 00:06:44,360 --> 00:06:46,280 Speaker 2: Is it that a lot of these buyers are just 126 00:06:47,000 --> 00:06:50,239 Speaker 2: increasing their prices because the supply is just so limited. 127 00:06:51,240 --> 00:06:54,359 Speaker 1: Yes, it starts with the farmers. So when farmers realize 128 00:06:54,360 --> 00:06:57,320 Speaker 1: that there's competition for their beings, they start to raise 129 00:06:57,360 --> 00:06:59,880 Speaker 1: their prices, and even among traders, they also start to 130 00:07:00,160 --> 00:07:03,200 Speaker 1: bit among each other. So it's the highest builder that 131 00:07:03,279 --> 00:07:06,800 Speaker 1: gets the bins, that helps to fuel prices higher and 132 00:07:06,880 --> 00:07:10,200 Speaker 1: higher every day. And I think that's good for the farmer, 133 00:07:10,440 --> 00:07:12,920 Speaker 1: especially in an era where they've not been getting as 134 00:07:13,040 --> 00:07:16,160 Speaker 1: much money for their beans. But for the consumer that 135 00:07:16,320 --> 00:07:19,440 Speaker 1: just means spending more dollars and more pounds for your 136 00:07:19,480 --> 00:07:22,120 Speaker 1: cup of coffee. In the long run, I think the 137 00:07:22,200 --> 00:07:25,960 Speaker 1: issue has been to ensure that farmers are fairly remunerated 138 00:07:26,000 --> 00:07:28,840 Speaker 1: for their amount of work that they put in the fields. 139 00:07:30,400 --> 00:07:33,520 Speaker 1: Tending to a coffee plantation is not easy, picking the 140 00:07:33,640 --> 00:07:36,640 Speaker 1: cherries taking them to the washing station. So farmers have 141 00:07:36,720 --> 00:07:39,600 Speaker 1: always been saying, we need a fair price, and maybe 142 00:07:39,600 --> 00:07:43,000 Speaker 1: the rallying prices helps them get part of that fair price. 143 00:07:43,640 --> 00:07:44,720 Speaker 4: Stick with us Mumbai. 144 00:07:44,840 --> 00:07:47,440 Speaker 2: After the break, we'll talk more about how these rising 145 00:07:47,520 --> 00:07:51,640 Speaker 2: prices are affecting farmers and growers on the ground in Africa. 146 00:07:51,720 --> 00:07:58,200 Speaker 4: We'll be right back and welcome back. 147 00:07:58,320 --> 00:08:02,280 Speaker 2: We still have Mumbaiker tow Bloomberg Soft Commodities reporter joining 148 00:08:02,360 --> 00:08:04,920 Speaker 2: us to talk all things coffee and coffee crops. So 149 00:08:05,240 --> 00:08:07,320 Speaker 2: maybe we were talking a little bit about the global 150 00:08:07,560 --> 00:08:11,280 Speaker 2: producers before the break, but you mentioned some of the 151 00:08:11,360 --> 00:08:15,000 Speaker 2: African producers and in particular how what we're seeing right 152 00:08:15,040 --> 00:08:17,760 Speaker 2: now is affecting them. Can you dig more into that 153 00:08:17,880 --> 00:08:20,280 Speaker 2: and where we're seeing this really have an impact on 154 00:08:20,360 --> 00:08:21,160 Speaker 2: coffee farmers. 155 00:08:21,720 --> 00:08:24,880 Speaker 1: So when we saw earlier in the year that Vietnam 156 00:08:25,080 --> 00:08:28,400 Speaker 1: was not giving as much supply as the world needed, 157 00:08:28,800 --> 00:08:32,160 Speaker 1: a lot of attention started also to shift to Uganda, 158 00:08:32,200 --> 00:08:35,120 Speaker 1: which is also coming up as a powerhouse in terms 159 00:08:35,120 --> 00:08:39,160 Speaker 1: of coffee production. It's coffee production has gone up increasingly 160 00:08:39,679 --> 00:08:42,760 Speaker 1: higher every single year and so it was very helpful 161 00:08:42,800 --> 00:08:45,480 Speaker 1: for it to come and plug the short fall. But 162 00:08:45,600 --> 00:08:47,600 Speaker 1: that did not mean that prices were going to fall 163 00:08:48,000 --> 00:08:51,720 Speaker 1: that much lower. So we saw farmers in Uganda and 164 00:08:51,800 --> 00:08:55,840 Speaker 1: exporters in Uganda shipping a lot more coffee to Europe, 165 00:08:55,840 --> 00:08:58,640 Speaker 1: to the Middle East, to the Americas, and that way 166 00:08:58,720 --> 00:09:02,240 Speaker 1: they helped to ensure that the shortfall so from Vietnam 167 00:09:02,760 --> 00:09:03,840 Speaker 1: was being fulfilled. 168 00:09:04,320 --> 00:09:08,840 Speaker 2: And in New Ganda there's an interesting picture that's being 169 00:09:08,880 --> 00:09:12,640 Speaker 2: painted there. We actually talked to our reporter fred O Jambo, 170 00:09:12,840 --> 00:09:15,280 Speaker 2: who is based in Kampala, and he told us in 171 00:09:15,320 --> 00:09:17,880 Speaker 2: particular what the farmers there are having to resort to 172 00:09:18,160 --> 00:09:20,760 Speaker 2: just as the prices continue to take up. 173 00:09:21,000 --> 00:09:24,079 Speaker 3: Farmers say that their farms are targeted because of the 174 00:09:24,200 --> 00:09:30,000 Speaker 3: high prices and they resorted to guarding their farms to 175 00:09:30,240 --> 00:09:35,600 Speaker 3: avoid being victims to the thefts of cherries from their farms. 176 00:09:35,920 --> 00:09:39,760 Speaker 3: Some of the methods they are using employing logs others 177 00:09:39,800 --> 00:09:44,160 Speaker 3: into a pierae, although this one is meant to enhance 178 00:09:44,520 --> 00:09:47,960 Speaker 3: pollination of the prop but they added that it could 179 00:09:48,240 --> 00:09:52,800 Speaker 3: scare away thieves who use the couple of darkness drop 180 00:09:52,840 --> 00:09:58,000 Speaker 3: their crop, so they say they may fear to antigolize 181 00:09:58,040 --> 00:09:58,680 Speaker 3: the bees. 182 00:10:00,120 --> 00:10:03,360 Speaker 5: Is the coursern. It takes a lot of money higher 183 00:10:03,360 --> 00:10:06,520 Speaker 5: gods to God. But some of them have resorted to 184 00:10:07,000 --> 00:10:10,920 Speaker 5: working up occasionally during the night scout around their farms 185 00:10:11,120 --> 00:10:12,880 Speaker 5: which are at their backyards. 186 00:10:12,960 --> 00:10:15,040 Speaker 1: I think from my days when I was in Kenya, 187 00:10:15,080 --> 00:10:18,200 Speaker 1: I used to see how excited coffee and tea farmers 188 00:10:18,320 --> 00:10:20,160 Speaker 1: used to be when they get their pay, and I 189 00:10:20,160 --> 00:10:23,160 Speaker 1: imagine that's the same case for Uganda farmers, they're seeing 190 00:10:23,160 --> 00:10:26,280 Speaker 1: prices that they've probably not seen in their lifetime. They're 191 00:10:26,320 --> 00:10:29,520 Speaker 1: getting a lot more money for their coffee, and that's 192 00:10:29,559 --> 00:10:32,400 Speaker 1: incentivizing crime. So if you see that your neighbor is 193 00:10:33,000 --> 00:10:35,640 Speaker 1: earning a lot more from coffee, and you probably do 194 00:10:35,720 --> 00:10:38,880 Speaker 1: not own a coffee plantation, then you might be incentivized 195 00:10:38,920 --> 00:10:41,560 Speaker 1: to walking there in the middle of the night. Pluck 196 00:10:41,640 --> 00:10:44,040 Speaker 1: a future is go drive them and then sell them 197 00:10:44,080 --> 00:10:45,559 Speaker 1: to the highest speeder. 198 00:10:46,840 --> 00:10:49,760 Speaker 2: And we know that coffee beans, mambe are not the 199 00:10:49,880 --> 00:10:53,840 Speaker 2: only only craft that's been targeted for food crime, especially globally. 200 00:10:53,880 --> 00:10:56,440 Speaker 2: I mean, is there anything that we know just based 201 00:10:56,440 --> 00:11:00,360 Speaker 2: on your own reporting, that people are doing to prevent 202 00:11:00,440 --> 00:11:01,280 Speaker 2: this from happening. 203 00:11:01,360 --> 00:11:01,840 Speaker 5: You're right. 204 00:11:01,920 --> 00:11:05,040 Speaker 1: So early in the year we also covered about thefts 205 00:11:05,080 --> 00:11:08,200 Speaker 1: of cocoa in the West Africa region. At the time, 206 00:11:08,320 --> 00:11:12,000 Speaker 1: prices had also rallied to eleven thousand dollars a time, 207 00:11:12,280 --> 00:11:15,040 Speaker 1: and that also incentivized the kind of theft that you're 208 00:11:15,040 --> 00:11:19,600 Speaker 1: seeing in Uganda. I have seen most government as communities 209 00:11:19,679 --> 00:11:23,680 Speaker 1: to form patrols to try and ensure security in their areas. 210 00:11:23,960 --> 00:11:26,840 Speaker 1: There's very little that a government can do apart from 211 00:11:26,920 --> 00:11:30,920 Speaker 1: trying increase policing activities and patrols in the area, because 212 00:11:30,960 --> 00:11:33,880 Speaker 1: remember some of these farms are not fenced, so they're 213 00:11:33,960 --> 00:11:37,440 Speaker 1: very open, so they're open to any trust persons to 214 00:11:37,520 --> 00:11:41,320 Speaker 1: come in and out. But I think community patrols and 215 00:11:41,360 --> 00:11:45,360 Speaker 1: the government giving them access to more patrols that might 216 00:11:45,360 --> 00:11:46,320 Speaker 1: be helpful for them. 217 00:11:46,760 --> 00:11:50,120 Speaker 2: And in Uganda were also seeing bees even getting into 218 00:11:50,120 --> 00:11:53,800 Speaker 2: the next to helping esport thieves. What does all of 219 00:11:53,840 --> 00:11:56,560 Speaker 2: this mean then there's this win fall here today for 220 00:11:56,679 --> 00:11:59,760 Speaker 2: some of these African countries and especially you mentioned that 221 00:11:59,800 --> 00:12:00,840 Speaker 2: you've is trying. 222 00:12:00,679 --> 00:12:01,439 Speaker 4: To be a powerhouse. 223 00:12:01,559 --> 00:12:04,320 Speaker 2: Is it possible considering the situation they're dealt with. 224 00:12:04,800 --> 00:12:08,439 Speaker 1: I think as long as we are still facing whether 225 00:12:08,559 --> 00:12:12,920 Speaker 1: related challenges, farmers may continue to earn a lot more. 226 00:12:13,360 --> 00:12:15,960 Speaker 1: It's hard for these prices to come off the highs 227 00:12:15,960 --> 00:12:21,160 Speaker 1: that they're at without and significant supply rebound. Now we've 228 00:12:21,200 --> 00:12:24,280 Speaker 1: been going from one year of bad weather, one year 229 00:12:24,360 --> 00:12:26,480 Speaker 1: of bad weather, to another year of bad weather. So 230 00:12:26,720 --> 00:12:29,920 Speaker 1: we've had consecutive years of bad weather so much that 231 00:12:29,960 --> 00:12:33,320 Speaker 1: we are not replenishing the stocks that we are slowly 232 00:12:33,360 --> 00:12:37,360 Speaker 1: tapping into. So for the seeable future, prices could stay high, 233 00:12:37,600 --> 00:12:40,760 Speaker 1: will they rarely continue? I think that's all dependent on 234 00:12:40,800 --> 00:12:43,839 Speaker 1: the weather, whether it's favorable or not. But at least 235 00:12:43,840 --> 00:12:46,280 Speaker 1: for now prices are likely to stay high. 236 00:12:46,320 --> 00:12:50,240 Speaker 2: And mumbe, just finally, what's the next commodity to watch for? 237 00:12:50,520 --> 00:12:53,959 Speaker 2: Just considering, I mean, weather is affecting so many different crops. 238 00:12:54,000 --> 00:12:56,160 Speaker 2: I mean, I wonder what you've got your eye on next. 239 00:12:56,679 --> 00:13:00,320 Speaker 1: My eyes are actually on sugar because Brazil is also 240 00:13:00,440 --> 00:13:04,720 Speaker 1: the biggest producer of sugar, and we've seen fires in 241 00:13:04,760 --> 00:13:08,000 Speaker 1: the region, dry weather in the region, and that's impacting 242 00:13:08,080 --> 00:13:11,280 Speaker 1: sugar production. Just yesterday we saw prices go back to 243 00:13:11,440 --> 00:13:14,240 Speaker 1: levels that we last so in April. So road sugar 244 00:13:14,360 --> 00:13:17,120 Speaker 1: is an important one for us to what now. Africa 245 00:13:17,200 --> 00:13:20,000 Speaker 1: is not the biggest producer of roach sugar. Actually it's 246 00:13:20,040 --> 00:13:23,480 Speaker 1: a net importer. So if prices of road sugar sad 247 00:13:23,600 --> 00:13:26,559 Speaker 1: in other parts of the world, then Africa will probably 248 00:13:26,600 --> 00:13:30,079 Speaker 1: have a higher import bill when it comes to importing sugar, 249 00:13:30,200 --> 00:13:32,880 Speaker 1: and they'll have more expensive sugar going. 250 00:13:32,760 --> 00:13:36,160 Speaker 2: Forward, just at a time when they're hoping inflation to ease. 251 00:13:36,320 --> 00:13:39,240 Speaker 2: Mumbig Guitar Bloomberg's oft Commodities reporter leb. 252 00:13:39,080 --> 00:13:40,560 Speaker 4: Be always great to get you on. Thank you so 253 00:13:40,640 --> 00:13:41,520 Speaker 4: much for your reporting. 254 00:13:41,840 --> 00:13:44,079 Speaker 2: Thank you, and you can read all the latest on 255 00:13:44,080 --> 00:13:47,720 Speaker 2: the price of coffee across Bloomberg News platforms. Now we'll 256 00:13:47,720 --> 00:13:50,319 Speaker 2: also put a link to Fred's reporting in the show notes. 257 00:13:52,280 --> 00:13:54,719 Speaker 2: Now here's a few other stories in the region that 258 00:13:54,760 --> 00:14:00,360 Speaker 2: we're watching. Historic rainfall bucket it down in Central Europe, Africa, Hi, 259 00:14:00,559 --> 00:14:03,920 Speaker 2: and the US Carolinas. This week, at least one thousand 260 00:14:04,000 --> 00:14:05,800 Speaker 2: people have died in Africa. 261 00:14:05,760 --> 00:14:07,959 Speaker 4: And millions of people have been displaced. 262 00:14:08,520 --> 00:14:12,160 Speaker 2: Also, the South African Reserve Bank joined the Federal Reserve 263 00:14:12,240 --> 00:14:15,400 Speaker 2: and other central banks globally cutting interest rates for the 264 00:14:15,440 --> 00:14:19,720 Speaker 2: first time in years as inflation eases across their economies. 265 00:14:20,520 --> 00:14:23,400 Speaker 2: And you can follow these stories across Bloomberg, including the 266 00:14:23,440 --> 00:14:26,080 Speaker 2: Next African Newsletter. We'll also put a link to that 267 00:14:26,160 --> 00:14:32,560 Speaker 2: in the show notes. This program was produced by Adrian Bradley. 268 00:14:32,680 --> 00:14:35,320 Speaker 2: Don't forget to follow and review this show wherever you 269 00:14:35,400 --> 00:14:39,680 Speaker 2: usually get your podcasts. I'm Jennifer's Abasaja. Thanks for listening.