What’s causing the coffee costs to skyrocket–Do you have to cut back on your daily cup?
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As the sun peeks over the horizon and the aroma of freshly brewed coffee fills the air, another cherished morning ritual is achieved for many in the senior community. But what if that simple pleasure became a luxury?
Experts are sounding the alarm that our daily cup of coffee could soon become significantly more expensive, and this phenomenon is the culprit behind the rising costs. Could you still savor your cup of joe or is it time to find a cheaper alternative?
The beloved arabica coffee beans, known for their superior quality and flavor, are at the heart of this issue. These are the beans that grace the shelves of our favorite cafes and local grocery stores.
However, the price of arabica beans has recently surged to $3.50 a pound, marking a 70% increase this year alone.
This is the steepest price hike since 1977–if we adjust that for inflation, $2.50 would be around $0.66 back then. Coffee prices skyrocketed before due to a frost killing more than a billion coffee bean trees.
David Ortega, a professor of food economics and policy at Michigan State University, has been closely monitoring the situation.
He points out that, “We’ve seen significant drought in some of the key coffee-growing areas in the world, places like Brazil, which is the largest coffee exporter in the world.”
Vietnam, another significant player in the coffee market, has also been affected. While Vietnam primarily grows robusta beans, which are considered slightly lower in quality and are often used in instant coffee products, the impact on their crops further strains the global coffee supply.
The frequency of extreme weather events is increasing. Experts like Ortega warn that “We’re going to see these types of [climate] events just get more frequent into the future. And so we have to start taking this seriously and make investments in agricultural research and development to be able to mitigate and tackle the impacts of climate change on our agricultural production and agricultural system.”
Investing in agricultural research and development is crucial to mitigate the effects of climate change on our food systems. But these solutions take time, and in the interim, the cost of coffee is climbing.
Jackie Newman, vice president of World of Coffee Inc., a family-owned business that processes and packages coffee beans, echoes Ortega's concerns.
“Climate change is the No. 1 factor on the increase and change in prices in the coffee market. It puts a lot of stress on the market. The supply is down and the demand is up,” remarked Newman.
She highlights that climate change is the primary factor driving up coffee prices, putting immense pressure on the market. With supply dwindling and demand soaring, everyone in the coffee chain feels the pinch—from farmers to roasters to distributors.
As consumers, we're bound to feel the impact of these price increases.
“We’re going to try to be as fair as possible and eat as much of the cost as we can. Obviously, people still need their cup of coffee in the morning,” Newman said. “But we also have to make sure that we’re accounting for all of our costs, not just the increase in coffee but also the increase in packaging and labor costs, as well.”
Newman predicts that coffee prices could rise by 50 cents to $1 a pound in the near future. This might not seem like much at first glance, but it adds up quickly, especially for those of us who savor a cup or two (or more) each day.
“Roasters are extremely affected because the price is so high and we still have our customers that we have to fill orders for. That does trickle down the chain and affects the everyday consumer,” Newman quipped.
As we age, aside from issues like climate change, we also become more mindful of what we consume. When it comes to coffee, the options are endless, but what's the best for our health?
In earlier news, we covered the healthy and harmful coffee options. Take your pick by reading this story here.
Have you noticed a change in the price of your favorite coffee? Are you concerned about how climate change might affect other aspects of your daily life? Share your thoughts and experiences in the comments below!
Experts are sounding the alarm that our daily cup of coffee could soon become significantly more expensive, and this phenomenon is the culprit behind the rising costs. Could you still savor your cup of joe or is it time to find a cheaper alternative?
The beloved arabica coffee beans, known for their superior quality and flavor, are at the heart of this issue. These are the beans that grace the shelves of our favorite cafes and local grocery stores.
However, the price of arabica beans has recently surged to $3.50 a pound, marking a 70% increase this year alone.
This is the steepest price hike since 1977–if we adjust that for inflation, $2.50 would be around $0.66 back then. Coffee prices skyrocketed before due to a frost killing more than a billion coffee bean trees.
David Ortega, a professor of food economics and policy at Michigan State University, has been closely monitoring the situation.
Arabica coffee bean prices have spiked, leading to the highest prices for the crop since 1977. Image source: Pexels / Madison Inouye.
He points out that, “We’ve seen significant drought in some of the key coffee-growing areas in the world, places like Brazil, which is the largest coffee exporter in the world.”
Vietnam, another significant player in the coffee market, has also been affected. While Vietnam primarily grows robusta beans, which are considered slightly lower in quality and are often used in instant coffee products, the impact on their crops further strains the global coffee supply.
The frequency of extreme weather events is increasing. Experts like Ortega warn that “We’re going to see these types of [climate] events just get more frequent into the future. And so we have to start taking this seriously and make investments in agricultural research and development to be able to mitigate and tackle the impacts of climate change on our agricultural production and agricultural system.”
Investing in agricultural research and development is crucial to mitigate the effects of climate change on our food systems. But these solutions take time, and in the interim, the cost of coffee is climbing.
Jackie Newman, vice president of World of Coffee Inc., a family-owned business that processes and packages coffee beans, echoes Ortega's concerns.
“Climate change is the No. 1 factor on the increase and change in prices in the coffee market. It puts a lot of stress on the market. The supply is down and the demand is up,” remarked Newman.
She highlights that climate change is the primary factor driving up coffee prices, putting immense pressure on the market. With supply dwindling and demand soaring, everyone in the coffee chain feels the pinch—from farmers to roasters to distributors.
As consumers, we're bound to feel the impact of these price increases.
“We’re going to try to be as fair as possible and eat as much of the cost as we can. Obviously, people still need their cup of coffee in the morning,” Newman said. “But we also have to make sure that we’re accounting for all of our costs, not just the increase in coffee but also the increase in packaging and labor costs, as well.”
Newman predicts that coffee prices could rise by 50 cents to $1 a pound in the near future. This might not seem like much at first glance, but it adds up quickly, especially for those of us who savor a cup or two (or more) each day.
“Roasters are extremely affected because the price is so high and we still have our customers that we have to fill orders for. That does trickle down the chain and affects the everyday consumer,” Newman quipped.
As we age, aside from issues like climate change, we also become more mindful of what we consume. When it comes to coffee, the options are endless, but what's the best for our health?
In earlier news, we covered the healthy and harmful coffee options. Take your pick by reading this story here.
Have you noticed a change in the price of your favorite coffee? Are you concerned about how climate change might affect other aspects of your daily life? Share your thoughts and experiences in the comments below!
