Experts: Global coffee prices could jump due to low supply, growing demand
GREENVILLE, N.C. (WITN) - The price of coffee could be on the rise due to a low supply.
The world’s largest coffee supplier in Brazil has lost nearly 30% of its crops due to drought.
The Wall Street Journal says coffee drinkers may already be experiencing a spike, as the price of a cup has increased 17% in the past five years, more than the rate of inflation.
On average, a cup of coffee today costs about $4.50, but five years ago, it was only $3.85.
In addition, world coffee production is expected to be down 11 million bags from last year.
Experts say buyers may not immediately feel this rise in prices however, as many bigger coffee companies usually negotiate rates years out to avoid market volatility.
If the higher costs do pass on to customers, it likely wouldn’t be until early 2022.
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