Will the average price of a cup of coffee rise?
Starting your day off with a cup of coffee to some people is a must need, and some need that first cup of coffee before work or before they talk to anyone.
The average cup of coffee is under 3 dollars; however, some recent events could cause the average price to rise slightly.
The rise to due to several reasons. According to a report from fitch solutions, major coffee producers likes Vietnam, Brazil and Colombia are experiencing significant issues.
Vietnam is currently battling the worst Covid outbreak since the start of the pandemic. A lockdown in exporting coffee has affected overseas shipments of coffee and other goods.
Brazil is seeing waves of frost and drought that have damaged crops. Bad weather has affected Colombia's harvest and the emergence of the covid virus could lead to prolonged restrictions and labor shortages.
"The drivers of the pandemic and the drivers of the economy and that being an air cultural product, will continue to see some volatility and some increases," said Levi Smith, Head Roaster at Voyager Coffee and Tea.
Does this mean that the big corporations like Maxwell and Folgers will see an increase?
Not necessarily; the big companies that produce mass orders of coffee have already had contracts in place at a set price. So it boils down to the farmers; the small ma and pa shops and even restaurants will see the biggest hit.
For every cup of coffee that you have with Sunday Brunch, that cost will be eaten by the restaurant or charged back to the customer. It all comes down to volume and how much of a hit can the restaurant and shop take.
After going through the pandemic, some restaurants and small shops can't afford to take the increased hit for an extended period. However, there are some local coffee shops won't raise their price.
Mathew Cambell, the owner of Branch St. Coffee Roast, said, " We have been really fortunate on our side as we have purchased the top 10 to 15 percent of the coffee produced worldwide so we're not tied to the sea market price."
So don't be surprised when you get your next cup of Joe, that it could be slightly more expensive.