Do you love coffee? Of course you do, it’s one of the most popular drinks in the country. Well, I’ve got some bad news for you. Bloomberg reports that coffee prices are about to go on the rise due to a drought in Brazil, too much rain in Vietnam, and a smaller than usual harvest in Indonesia. All these weather factors have combined into one sad and scary force, a force that threatens our daily cup of joe.
The areas affected mostly produce robusta bean, the bean used in instant coffee, espressos, and as a filler bean in mixed blends. This means prices across the board are set to rise, and it doesn’t look like there is much hope in a 2017 recovery for Brazil.
Big names like Folgers, Café Bustelo, and Dunkin’ Donuts have already begun to raise their prices to offset the lack of product. The same company owns all three brands, J.M. Smucker Company, and they have stated that packaged coffee will go up about 6 percent while K-cup prices will remain the same. For now, Dunkin’ Donuts prices will only increase on their packaged coffee, not the product sold in their various locations nationwide.
Over the summer, Starbucks rose their prices for the third year in a row, this time the increase was $.10 to $.20 per cup on select beverages, all to account for the slim supply that is expected to last through all of 2017. The chain bumped their prices once again right before Christmas on cold beverages and baked goods.
For those of us that love to start our day with a warm brew, this might be the year to splurge on an at-home espresso maker and avoid the inevitable price changes at our local coffee houses. 2017 looks like a rough year for coffee drinkers, let’s hope that 2018 brings a better outlook. Along with a rough year for coffee, it looks as though citrus will also be affected. Orange juice features traded at a four year high this past fall in New York. Maybe we should all sleep through breakfast this year and hope that lunch is shaping up to be a lot better.