You may have heard in recent news about the drought in Brazil and how the coffee prices rose significantly. How does this apply to the average consumer trying to buy coffee? I’ll tell you!
Firstly, Brazil is the largest exporter of coffee in the world and they have been experiencing some bad weather for coffee growing. Ideally, coffee is grown in two seasons; wet and dry. The wet season is important because it allows the coffee to flower and grow during the rain. Then, coffee is ripened and picked under the sun of the dry season.
Unfortunately, Brazil has had a little too much dry season this year and not enough rain to help with the development of coffee growing. Already, 5% of the Arabica coffee from Brazil has been found to be bad and cannot be sold.
Gourmet coffee prices closed in late February around $1.55 per pound of green coffee beans. This number is shocking to most buyers because last week coffee was closing around $1.40 per pound and the price went up 9.1% in one day. This is the highest percentage of price increase for coffee since November 2004.
Back to what this means to you. Luckily, coffee is bought months in advance so roasters will not have to adjust prices for the time being. However, if coffee prices stay where they are at or they get higher in the next 2-3 months, then you might be seeing some price increases in retail coffee. So don’t fret quite yet, there is still time for the market to stabilize before any retailers are affected.