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Coffee Prices Still Surging: No Significant Relief In Sight…

We’ve were warned – given ample cues years in advance. But some folks out there are still expressing shock and alarm at the continuing increase in coffee prices. Time for an update on the global coffee market. And what to expect in the foreseeable future…

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The latest numbers from the International Coffee Organization (NCA) reported that the ICO Compos-ite Indicator Price for raw coffee averaged 238.92 cents or around (US)$2.39 per lb. / (US)$5.26 over the past two consecutive months. That’s a 47-year high,.

A complex equation

The global coffee price equation is a complex one with many variables – the most important ones out of human control.

The foremost of those is climate change, which is bring not only unwanted warming to coffee growing regions by unpredictable weather patterns as well.

“Supply chain disruptions have driven up the cost of everything from beans – up 60 percent since 2021 – to paper cups,” Marco Meier, owner of Amano Café in New York City recently told Good Morning America Add in rising labor costs and shipping expenses, and it’s a challenge to stay competitive.”

Demand-side pressure

Consumer demand for coffee has also driven up retail prices in North America. In spite of steadily rising prices.

According to the National Coffee Association, American adults drink an average of nearly 465 million cups of coffee every day. That’s a two-decade high.

My take

Adding up all the contributing factors, the average retail price of a pound of coffee in the US rose from (US)$4.56 a year ago to (US)$6.11 this past July, according to the US Bureau of Labor Statistics.

The good news is, recent harvest shortfalls in the world’s largest producing regions are expected to rebound at least a little next year. And that should lead to at least a small decline in coffee prices in North America and Europe by 2026.

I’ll believe it when I see it…

~ Maggie J.

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