The boss of coffee giant Lavazza has said hedge funds are to blame for pushing up the price of a morning brew.
Giuseppe Lavazza said speculation by the big financial firms was responsible for the vast majority of the surge in prices on wholesale coffee bean markets.
He said: ‘Hedge funds are really big players and they make a lot of difference, especially in the volatility of the market and the uncertainty of the market.’
Without their speculation, prices would simply reflect market fundamentals – such as supply and demand, he added.
Blame game: Giuseppe Lavazza said speculation by the big financial firms was responsible for the vast majority of the surge in prices on wholesale coffee bean markets
‘Over the last four years, where prices rose so much – [it was] 80 per cent speculation, especially hedge funds.’ That has led to higher costs for consumers and a decline in consumption – down 3.5 per cent last year – Lavazza said.
His firm was forced to put up prices by 20 per cent last year but costs may have stabilised.
Lavazza said high global prices were ‘totally unsustainable for the industry’.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .