Colombia is the 3rd largest coffee-producing country in the world, behind Brazil and Vietnam.
Coffee prices at the store and at coffee shops will rise (or continue to rise). Supply simply cannot keep up with world demand. And speaking of supply, bad weather has plagued key coffee growing regions like Brazil and Colombia. And the region’s next crop isn’t expected to produce a bigger yield. As a result, wholesale arabica coffee prices surged by 13% in December, a 60% year-over-year increase. Damn Biden!!!! 😉
Coffee futures then hit a NEW high after Trump threatened a 25% tariff on Columbia because of immigration differences. The tariff never went into effect but it affected futures prices because of the unpredictability of Trump.
Starbucks, Nestle and Keurig source a lot of coffee from Colombia but they lock in prices years in advance, so consumers often don’t feel price increases right away. Companies, however, will start increasing prices, maybe not all at once, but little by little, so that they’ll have a little cash reserve against when coffee starts coming in at higher wholesale prices.
My favorite coffee is Seattle's Best, which I always get at Sam's Club. Before covid, the cost was $9.98 for 2 lbs. Now, it is $13.54, a 36% price increase.
Coffee prices at the store and at coffee shops will rise (or continue to rise). Supply simply cannot keep up with world demand. And speaking of supply, bad weather has plagued key coffee growing regions like Brazil and Colombia. And the region’s next crop isn’t expected to produce a bigger yield. As a result, wholesale arabica coffee prices surged by 13% in December, a 60% year-over-year increase. Damn Biden!!!! 😉
Coffee futures then hit a NEW high after Trump threatened a 25% tariff on Columbia because of immigration differences. The tariff never went into effect but it affected futures prices because of the unpredictability of Trump.
Starbucks, Nestle and Keurig source a lot of coffee from Colombia but they lock in prices years in advance, so consumers often don’t feel price increases right away. Companies, however, will start increasing prices, maybe not all at once, but little by little, so that they’ll have a little cash reserve against when coffee starts coming in at higher wholesale prices.
My favorite coffee is Seattle's Best, which I always get at Sam's Club. Before covid, the cost was $9.98 for 2 lbs. Now, it is $13.54, a 36% price increase.
