Next time you go to get your favorite cup of Joe in the morning and are startled at the price, you can thank Brazil, Mexico, Colombia and other coffee producing nations “disappointing” crops for that.
The price of coffee hit a 14-year high this week, with futures prices hitting the $2.46 per pound price on Thursday. That is the highest price since 1997 when prices were over the $3.00 mark.
The demand for different types of coffee and continuously poor harvests in Latin America especially Brazil are to blame for the low supply and high demand driving prices up. Most coffee in the U.S. is imported and when large coffee producing countries like Brazil and Colombia have bad harvests other countries can’t make up the shortfall.
It is inevitable that roasters and retailers will pass on the higher price to consumers, Starbucks and Dunkin’ Donuts have already done so.