Coffee Prices Hit Record High, Signaling a More Expensive Daily Cup of Joe

The high price is like the flashlight in the dark. ‘Look, folks, we have an issue.’ How do we use this to make sure farmers have stable and sustainable production?

Chief Executive of World Coffee Research, Vern Long, referring to the increased price in coffee. In January, the retail price of ground coffee hit a record high of $7 per pound. A multitude of reasons fuels the surge in prices.

Why It Matters: Traders often buy coffee shipments months or years ahead of time, therefore increased market price for coffee indicates a spike for consumers in the future. As ground coffee prices reached a record high price of $7 in January, consumers can expect to pay more for their cup of joe in coming months and even years.

A Few Reasons Why:

• Brazil and Vietnam continue to produce more coffee than any other countries. However, both nations experienced droughts in recent years, slowing down production.
• Disruptions in international shipping and trade wars can impact coffee distribution — such as the war between Israel and Hamas limiting shipments through the Red Sea or the ongoing potential impact of tariffs in Mexico and Canada.
• Coffee consumption overall continues to grow; China, for example, has seen a 150% surge in coffee consumption over the past 10 years.
• Weather and the impact of climate change pose concern for the sustainability and predictability of coffee production, as parts of the world typically ideal for growing coffee beans face deforestation or harsh weather events.

Read More: Why your coffee fix has gotten so pricey — and will only get worse (The Washington Post)

Coffee’s bitter future (Business Insider)