Monday, February 28, 2011

Coffee Prices Hit 34 Year High

Well..  I saw it coming down the road late last year and it was only time that the increase in coffee prices would hit us in the pockets.  During the past 12 months alone, those prices rose by 145% which has led to retail price increases. Some of the big coffee companies have already increased their coffee prices three times during the past year.  There are other smaller companies that have not raised their prices but getting pretty close to doing so.  Don't be surprise to see your favorite coffee shop pries increase  5 to 10 cents.  You can only hold the line on prices for so long before making a lost.

Numerous nations are struggling to sustain their coffee crops while demand keeps rising. As a result, inventories have fallen to their lowest levels since the International Coffee Organization (ICO) started tracking this data in the 1960s.  Over the past three years, Columbia largely drove the rally in the coffee market . It suffered from a string of bad crops, partly due to heavy rains and partly due to its program to replant coffee trees.  Coffee trees do not live forever and replanting will ensure continuous supply of good quality coffee.
Meanwhile, Mexico is suffering a bad crop due to low temperatures and Brazil, the world’s top coffee exporter, could have a small harvest of low quality beans as well.  Most industry insiders say Arabica bean coffee prices are headed to at least $3 a pound.

Don't forget that BlackGold coffee company has NOT raised its prices on roasted or green coffee beans.  Check the website for the best prices.

 Deanna Helie, Morning Cupper