Will skeptics begin to believe in the existence of global warming when it starts to affect their morning cup of joe?
The price of coffee beans have reached its peak this April, and will soon be reflected in prices charged by the grocery store. Dunkin Donuts and Folgers are just a few of the brands that will increase their price. What the Joe? As of right now, it does not look like the price of K-cups will increase. Although an immediate change in price may not be noticed, you may notice a change in price much sooner.
According to the Wall Street Journal online, J.M Smucker Co. Was the first major company to show a rise in price. A 9% increase will be introduced to brands like Folger’s and Dunkin Donuts in the grocery store.
The rise in prices come as a result of drought in Brazil. The country is known for its abundance of arabica coffee, the bean used in the majority of coffee shops. The drought may cause not only a change in price for the bean, but a change in the demand. Retailers may start to look to other countries, like India or Vietnam. Often, the rise in prices come a few months after the market. Many roasters will try to avoid raising their cost, by using inventory from stockpiles of less expensive beans. However, this technique can only be relied on for so long, before wholesalers start to raise the price of the bean all together. As if the world doesn’t already pay enough per cup, now it’s going to start forking over a lot more for the bag of beans.
Now, some individuals are in a sticky situation. Most Americans depend on their morning coffee to provide them with the energy to get through the workday, which begs the question: will people really be willing to give that up for a small percent of price increase?
Thankfully, rain in Brazil seems to have picked up. Hopefully in the next couple of months the crop will be producing better, allowing prices to happily decline again.