Coffee is getting more expensive

Coffee beans

The humble cup of coffee is not so humble nowadays, a fact which will shock drinkers in Spain and beyond.

The price of a cup of coffee is set to rise even further than the highs seen last February.

Back then, the price of coffee in Spanish shops rose by 23% compared to the same month in 2021. The figures come from the National Institute of Statistics (INE).

The coffee market is predicted to climb higher during the next crop cycle.

The US Department of Agriculture reported that the global demand-supply balance for coffee beans is currently looking fragile.

The trouble stems from what’s left at the end of the last cycle – the 2023-2024 season – that can be used in the following season.

It is reckoned that at the start of the 2023-2024 season, there was barely 16% of future consumption available. Compare this to 33% which was available in the 2005-2006 season.

As to what we’re likely to consume in this season, it comes in at 170 million 60kg bags, higher than any season for the last 20 years. In 2005-2006, the figure was 125 million bags.

Less rainfall is behind the reason for reduced inventories, as both Vietnam and Brazil have been hit by poor growing conditions.

Fears are that the current crop growing in both countries could be hit again by the weather.

Market observers predict that coffee producers might panic before the crop is harvested and push up prices whatever happens with the next harvest.

Cava production decimated by drought in Catalonia

The lack of water in Spain’s Catalonia region is having real implications for the local wine industry and major player Freixenet has signalled it will have to potentially place its workers on short-time.

Grupo Freixenet, which is based in Barcelona and is owned by the German group Henkell and the Ferrer family, is famous for its cava brand.

It expects the continuing drought to cut production capacity by 30%, forcing it to present a temporary employment regulation file (ERTE) for more than 600 workers.

The ERTE was legally justified due to “force majeure,” meaning it has had to take the exceptional action. 

Last year’s rainfall plummeted by half in the area and 80 million bottles were lost.

The proposal has been sent to the Catalan Generalitat and will be passed onto the workers’ unions. 

The group said in a statement: “The measure, implemented as an exercise of responsibility, aims to guarantee the operation of the business and preserve employability to be able to face external causes and force majeure caused by the serious drought.

“Seeing that global demand for cava is booming and that we cannot produce enough bottles to adequately satisfy it in the short term, the situation is really complicated at all levels.”

The group has 778 workers, with 615 affected by the order. Much will now depend on how much it rains over the coming months.

Despite the water worries, the group posted an increase in turnover for 2023 of 4%.

Has coffee been around longer than the modern form of humans?

With experts now saying coffee is 600,000 years old, it’s sobering to think that the modern form of humans only evolved around 200,000 years ago.

Okay, human life has been around for around six million years, but popping into Starbucks for a skinny latte was maybe the last thing on their minds.

So how do we know coffee has a longer history than we originally throught? Well, it comes down to how long a coffee plant has been growing on the planet. Researchers built a family tree based on the coffea arabica plant, which supplies our most favorite type of coffee, and found the species evolved over half-a-million years ago via the natural crossbreeding of two other coffee species.

The researchers main objective was to discover more about the plants and help protect them from pests and climate change.

Wild coffee plants were first observed in Ethiopia. But as to when the coffee bean was first roasted and brewed to produce a cup of coffee, this was thought to be in the 15th century in Yemen. Two centuries later and legend has it that Indian monk Baba Budan smuggled some raw coffee beans back to his homeland, and Starbucks was born (well, to be precise, Starbucks started in 1971 in the US, so a little off).

Arabica is the world’s most popular coffee flavour, accounting for around 70% of the market.

The journal Nature Genetic published the study which was co-led by University of Buffalo.

Spain’s latest population figures

Spain´s population is just over 48 million. On 1 January 2023 the official number of people in Spain was 48,085,361, an increase of 598,634 during 2022. This was mostly down to an increase in foreigner nationals, whose number grew by 580,574.

The figures come from the annual Population Census which publish the National Statistics Institute (INE).

The number of foreigners in 2023, in Spain, was 6,089,620, a record, and steadily increasing over the years. At the turn of the century, they numbered just 1,572,013.

The most numerous nationalities currently in Spain are:

  • Moroccons (893,953);
  • Romanians (629,755);
  • Colombians (453,911);
  • Italians (301,791);
  • British (284,037);
  • Venezuelians (278,159).

New solar park to power 200,000 households

Plenitude, a company which produces electricity from renewable sources, is building a new solar park in Extremadura, the province of Badajoz.

The site is called Renopool and consists of seven photovoltaic plants. They will generate 660 GWh per year, equivalent to the energy consumption of around 200,000 households.

It will be the largest solar park ever undertaken by the company.

The deal was announced by Plenitude’s CEO Stefano Goberti, alongside Ignacio Gragera, Mayor of Badajoz, and D Víctor del Moral Agúndez, General Secretary for Sustainable Development of the Department of Agriculture, Livestock and Sustainable Development of the Regional Government of Extremadura.

Renopool will be built by construction companies OHLA, Sacyr and Sarpel, and will be finished in 2025.

Goberti said: “The construction of the Renopool solar park, the largest photovoltaic plant built by Plenitude, confirms our commitment to the Spanish renewable energy sector, where we operate about 400 MW of wind and photovoltaic plants in operation, more than 1,000 MW under construction, and more than 2,000 MW under development.

“In addition, thanks to our integrated business model, we are also growing in the country’s retail market, with more than 300,000 customers, and we have recently begun to expand our network of electric vehicle charging points in the Iberian Peninsula as well.”

Renopool will be connected to the national transmission grid via three connection nodes and a high-voltage line built and shared with other developers.

Plenitude is part of the Italian power group Eni.

Spanish olive oil giants merge

The world’s most successful seller of olive oil, Deoleo, and the world’s largest producer of the oil, Hojiblanca, are to merge.

The deal is set after CNC, Spain’s competition authority, gave the go-ahead following Deoleo agreeing to certain undertakings, including not to share market sensitive information.

Deoleo markets three of the globe’s top-four olive oil companies: Bertolli, Carapelli and Carbonell.

Hojiblanca has over 95 co-ops and is said to have around a 10% stake in Deoleo.

The idea is to create a group is a leader of the entire process, from production to shop.

Golden visas to be scrapped

European bureaucrats don’t like golden visas and Spain plans to scrap its scheme over the coming months.

Such schemes, designed to offer wealthy people from outside the European Union residency permits in return investing set amounts in property, have been blamed for housing speculation, putting pressure on locals.

In Spain, golden visas can be ‘bought’ for a half-a-million euros investment (not mortgaged) in a residential property. The visa lasts for three years with various conditions, before it has to be renewed. Similar schemes exist throughout Europe.

As part of the process to scrap the scheme, socialist Prime Minister Pedro Sánchez said the government would now begin to study reforms.

Sánchez said housing is “…a right, not a speculative business.”

Spanish golden visas were first introduced in 2013 by a previous right-wing Popular Party government as a means to attract foreign investors. Since its launch, over 10,000 golden visas have been issued.

Tourists pay more to visit Barcelona

Spain’s second City has its hand out and tourists will feel its grip.

In its plan to attract ‘quality’ tourists, the strategy is to increase the tax it levies on visitors. 

It was way back in 2012 that Barcelona first introduced a tourist tax.

And from 1 April, 2024, visitors will now pay both a regional tourist tax, and a city tax.

The regional tax ranges from €1.70 to €3.50 per night depending on the type of accommodation. Those coming in from a cruise liner don’t get off the hook, as they will also have to pay from €2 to €3.

The City tax ranges from €2.75 a night for lower range establishments, to €6.75 per night for top hotels. Renters pay €5.50 per night and cruise passengers will pay €6.25.

The money raised will go to fund mostly infrastructure projects such as public transport and road improvements. 

Observers welcome the move, but still believe Barcelona has to address some inherent issues such as the local’s hostility towards affluent visitors pricing them out of their own city and the high levels of petty crime.

85 years ago, the Spanish Civil War ended

Some 85 years ago on 1 April 1939, General Franco entered Madrid and declared victory via a radio broadcast.

He led the nationalist forces which ousted the Second Spanish Republic. Revenge was harsh and thorough, with thousands on the republican side either killed, or forced to flee.

After three bloody difficult years of struggle, the Spanish Civil War was over. Not only was the country torn apart, but it was a dress rehearsal for the horrific second world war which was to last five years and spread across the globe.

But, although the German fascists were defeated in 1945 and their 1000-year Reich was still born, Spain’s relationship with facsim did not end until 1975 when General Franco died.

And from 1939 to 1975 Spain was a shadow of its former glory and lost many decades of progress to the fascist rule.

When you think about modern Spanish history, Franco looms large. His full name was Francisco Franco Bahamonde and his party was the Falange Española Tradicionalista y de las Juntas de Ofensiva Nacional Sindicalista.

Basically a dictator, he assumed the title of Caudillo, which means a type of
leader, based upon almost a personality cult who wields immense military and political power. Definitions in the English language are hard to come by, but the closest is said to be ‘strongman’, or ‘warlord.’

In the early days Franco became the eventual figurehead of a military junta to which rallied a collection of far right parties and factions, including conservatives, monarchists and Falangists. They squared up to the republicans, an equally odd mixture but this time of republicans, socialists, communists and anarchists.

The touchpaper for the start of the war was a partially failed coup d’état in July 1936 which was orchestrated against the Republican government. It was led by a group of generals of the Spanish Republican Armed Forces with initially Generals Emilio Mola and José Sanjurj at the fore. When the latter two died, Franco rose to fill their boots.

The country quickly became divided, with military units showing the strongest support for the coup in such cities as Burgos, Cádiz, Córdoba, Pamplona, Seville, Valladolid and Zaragoza.

There was far less support in the cities and urban areas of Barcelona, Bilbao, Madrid, Malaga and Valencia.

It came down to a bloody and passionate fight between the Nationalists and Republicans, with both sides committing atrocities.

Other countries offered support depending on their political outlook at the time. The Nationalists were backed by Germany, Italy and Portugal. The Soviet Union and Mexico supported the Republicans.

And although the UK and US leant towards the Republicans, they stood on the sidelines via an official policy of non-intervention. Despite this, the nationals of the two countries voted with their feet and fought in a number of pro-Republican International Brigades.

The Spanish Civil War became a beacon for many of the liberal elite who categorised it as a simple struggle between freedom and tyranny.

The country still bears the scars of those years, with many Spaniards having long memories about what happened throughout the four years of confliuct and following harsh supression. It will take a number of generations for the wounds to heal before Spain can truly move from this dark period in its modern history.

Read: UN warns Spanish right not to white-wash Franco era