To many people in the world, coffee is not just a beverage; it's the extra push that gives a person the energy and courage to face their day. Coffee has been a crucial part to people's early mornings and long nights for generations, but could these days be behind us? According to the Bureau of Labor Statistics, the average price per pound of coffee as of November was $4.31, down from $5.04 in 2013, but in the recent years coffee's price per pound has been significantly lower, but prices are beginning to rise again.
The price of coffee now is estimated at $1.49, this has increased to more than 15 percent from one year ago, and bean cost are increasing as well.
According to the International Coffee Organization, economists have found that when the price of coffee futures go up, consumers usually see a price increase; but when futures prices fall, retail prices don’t typically fall at the same rate.
Coffee production has always been volatile but not impossible to predict for dry seasons or wet seasons to know when cultivation is at it's most fruitful, but recent climate shifts may create a terrible coffee conditions for major coffee growing countries like Vietnam and Brazil in the near future.
With Brazilian production of the higher quality arabica bean forecast to fall 13 percent in the 2017-2018 crop year, the key indicator of inventory available for consumption is expected to decline to an eight-year low, according to Rabobank. October, November and December are also considered Vietnam's dry season, but the country has been pummeled with rain that exceeds over 200 percent of their normal rain fall creating terrible growing conditions.
It's not known how far the extent of the price increase will go, but for now it shows no sign of decreasing.