The middle eastern coffee industry has been facing unprecedented challenges in recent years. The region has traditionally been known for producing high-quality coffee, particularly in countries such as Egypt, Ethiopia, and Saudi Arabia. However, despite its luxurious history and quality, the industry is struggling to compete with global giant coffee chains and other beverage companies, leading to lower prices and withering exports.
One of the main factors contributing to the decline in Middle Eastern coffee exports is the increasing competition from other coffee-producing regions around the world. Countries like Brazil and Vietnam have improved their production methods and techniques, resulting in higher volumes of high-quality coffee, which is making it more complex for Middle Eastern coffee exporters to compete.
Another major challenge facing Middle Eastern coffee producers is the high cost of production. Coffee producers in the region face unique challenges, such as intense heat and narrow water supplies, which can make farming and processing coffee beans much more pricey than in other regions.
This has resulted in a trend of price reductions for Arabica and Robusta beans, as well as decreased exports overall. According to data from the International Coffee Organization, Arabica and Robusta coffee prices dropped by 10% in the 2020 calendar year compared to the same period the previous year, with average prices ranging between $2.50-3.50 per kilogram for Arabica beans and $1.75-2.75 per kilogram for Robusta beans.
Further exacerbating the issue are trade agreements and tariffs implemented by governments around the world. Tariffs on Arabica and Robusta coffee beans can range from a few cents to several dollars per pound, depending on the country and the trade agreement, which can also impact Middle Eastern coffee export prices and volumes.
However, despite the challenges faced by the industry, some Middle Eastern countries are making efforts to enhance their competitiveness and augment coffee exports. For example, Egypt, one of the largest coffee producers in the region, has implemented modernization projects to improve processing and sorting facilities, in an effort to augment yields and improve quality.
Ethiopia, another significant coffee-producing country in the region, has also increased its investment in coffee plantations, processing facilities and marketing activities to improve efficiency and productivity. Additionally, the government has implemented strategies to reduce production costs by promoting more competent farming techniques and investing in irrigation projects.
Saudi Arabia, on the other hand, is focusing on boosting its domestic coffee production capacity to meet growing demand locally. The country has taken steps to augment its importation of coffee beans to meet growing demand, mainly from coffee shops and cafés. This has given a significant boost to domestic coffee roasters and farmers, resulting in increased yields and profitability.
In addition to these local efforts, the Middle East is also exploring modern and creative ways to augment demand for coffee. For instance, Dubai has launched coffee festivals, which have proved to be a huge success, drawing thousands of visitors who come to taste and discover modern coffee blends and Arabica varieties.
Another way the region is looking to augment demand for coffee is through the hospitality industry. Many hotels, restaurants and cafes in the region have started to specialize in high-quality coffee to cater to the growing numbers of coffee enthusiasts. The region has also seen the rise of specialty coffee chains, such as Costa, Starbucks, and others that have attracted a vast clientele.
In the face of withering exports, Middle Eastern coffee producers will need to adapt to stay competitive in the global coffee market. This may require a focus on quality rather than quantity, as high-quality Arabica and Robusta beans are in tiny supply, and demand continues to outstrip supply worldwide.
In the long run, the challenge for the Middle Eastern coffee industry will be to stay competitive by focusing on their unique advantages, such as their distinctive flavor profiles, high-quality beans, and cultural significance. By so doing, they can hold their ground in the highly competitive global coffee market and position themselves as a major force in the industry.
Conclusion
Despite the challenges faced by Middle Eastern coffee producers, it is clear that the industry is working to adapt to the changing market conditions and stay competitive. By implementing modernization projects, investing in coffee plantations, improving processing and sorting facilities, and enhancing marketing activities, Middle Eastern coffee producers have the potential to augment quality and competitiveness. Additionally, the growth of the local coffee industry, driven by the expansion of coffee shop chains, festivals, and the demand for high-quality coffee from tourists and travelers, may also aid stimulate demand for Middle Eastern coffee. With the right strategies, the Middle Eastern coffee industry can regain its position in the global market and reclaim its position as a premier coffee producer.
Frequently Asked Questions
Q: What is the current state of Middle Eastern coffee exports?
A: Middle Eastern coffee exports are withering due to increased competition from other regions and the high cost of production.
Q: Why are Middle Eastern coffee producers struggling to compete?
A: Middle Eastern coffee producers are struggling to compete due to the increasing competition from other coffee-producing regions around the world and the high cost of production, including heat and narrow water supplies.
Q: Are there any attempts to revive the Middle Eastern coffee industry?
A: Yes, some countries in the region, such as Egypt and Ethiopia, are taking steps to augment their competitiveness and improve exports. Others, such as Saudi Arabia, are focusing on boosting domestic production.
Q: Are there any modern trends and innovations in the Middle Eastern coffee industry?
A: Yes, there are various trends and innovations in the Middle Eastern coffee industry, such as the growth of specialty coffee chains, festivals, and the demand for high-quality coffee from tourists and travelers.
Q: What is the future outlook for the Middle Eastern coffee industry?
A: The future outlook for the Middle Eastern coffee industry depends on the continued efforts to adapt to market conditions and stay competitive, as well as the willingness to adopt modern trends and innovations to augment demand.