Logistics continue to be a struggle but we better get used to it because there is no end in sight!
The local currency is devaluing as we expect however the pace has accelerated in the last couple of months bringing with it fears of basic goods price hikes in the near term:
The recent terminal market action has incentivised business to such an extent that shippers are currently reluctant to offer until current commitments are fulfilled. The minimum price that a few months ago was an impediment to business has become totally irrelevant, shippers’ prices are now well above those set by the Coffee & Tea authority (C&TA). The graph below shows the differential of Lekempti 5 minimum registration price vs NYC. Currently Lekempti 5 is trading at a 20 cent premium to the Minimum registration price set by the C&TA:
Birr 43.1 = USD 1
Have a good weekend.