Coffee Drinkers: Prepare Yourselves For A Major Price Jump
By Cooking Panda
It’s a fly buzzing in your ear. You don’t want to hear it again, but it just keeps coming back: Coffee is getting more expensive.
By the end of 2016, the prices of both robusta (used in instant coffee) and arabica (nicer quality) coffees are expected to be at their highest since early 2015, revealed a Reuters poll of 11 traders and analysts.
To blame is the global market’s first supply deficit in coffee in six years, combined with steadying currencies and high demand.
Severe weather is also a threat to the precious caffeine beans; El Nino-related dryness in southeast Asia and drought in Brazil damaged crops and drained supplies, Fortune reports.
These factors contribute to hefty rises in price. Robusta coffee is forecasted to be 30 percent more expensive than it was in 2015, while arabica coffee is seeing a similar but less drastic change.
Mother Nature has no sympathy. Possible frost in Brazil and rains in Vietnam in the approaching months could further damage already dwindling bean crops, causing prices to rise even higher.
“Any kind of major weather threat could send … coffee prices back up to retest the 2011 highs near $3 per pound,” said Shawn Hackett, president of Hackett Financial Advisors in Boynton Beach, Florida.
While coffee-producing countries are expected to harvest more coffee beans than ever, demand is still presumed to outpace supply for the first time in six years.
If you need coffee in order to be a functioning human, we suggest preparing for the price storm. Stock up on your favorite bags now and stick ’em in the freezer, where unopened bags will last for a couple of years past the printed date.
As for those daily cappucinos at Starbucks: May your wallet rest in peace.coffee