Rising costs of most items is expected. Normal necessities to the average American like healthcare, food prices, and gas become more expensive all the time so it’s no wonder, yet still a bit of a surprise, that soon the cost of something as simple as coffee is expected to rise as well.
Smuckers, a company who owns both the Cafe Bastello and Folgers brands announced on January 11 that they plan to raise their prices by at least 6% percent to account for what they cited as “sustained increases in green coffee costs”. Since this statement, there has been plenty of controversy about what other brands could possibly decide to raise their prices due to this new coffee bean epidemic, but to solve the problem people have to get down to the bottom of it- which strangely enough is the weather.
A recent dry spell in the countries of Brazil and Vietnam, two of the biggest exporters of the tiny beans, has caused a global supply shortage which in turn has made the cost of arabica and robusta coffee beans gradually rise from their once steady cost. But will raising the price of the beans be for better or for worse?
“On average a $.0.10 increase in green coffee bean prices per pound would yield a $0.02 increase in both manufacturer prices and at the register.” says Marketwatch, a website which prides itself on providing the latest stock market and business news.
Raising the coffee beans prices, even ever so slightly, should definitely help get back on track towards evening out the average global supply, but the search for a long term solution is still ongoing.