Turkey Eases Tariffs On Least Developed Countries In Attempt To Bring Prices Back Down – CoffeeTalk

Turkey has eliminated import tariffs on raw coffee beans sourced from Least Developed Countries (LDCs), which is expected to slightly reduce domestic prices of filter and espresso coffee over the next two to three months. The decision covers 49 countries categorized as LDCs, including prominent coffee producers such as Ethiopia and Yemen, known for their high-quality Arabica beans. Turkey’s coffee imports exceeded $400 million in 2024, according to official data. Ahmet Tiryakioglu, Chair of the Cereals, Pulses, Oil Seeds and Products Sector Board at the Turkish Exporters Assembly (TIM), said the tariff removal could have a positive impact on domestic markets. However, any price drop will depend on several variables, including global supply-demand dynamics and broader economic factors.

Sertac Yalcin, CEO of Arabica Coffee House, echoed the sentiment, noting that zero tariffs directly reduce procurement costs but are not the sole determinant of final prices. Coffee prices have surged since the pandemic, reaching record highs of up to $450 per ton. Currently, futures prices are still volatile and hover around $400. Despite the tax exemption, such elevated market levels make an immediate price drop unlikely.

The recent surge in coffee prices has been primarily driven by supply disruptions in Brazil and Vietnam, the world’s two largest coffee producers. Persistent weather-related challenges and logistical constraints since 2024 have limited global output, tightened supply, and fueling price hikes.

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