Terrible weather produced terrible crops, which produced the highest coffee bean prices in 14 years, affecting the price people pay for their caffeine kick.
The commodity price for coffee closed at $2.46 per pound on Feb. 17, which is the highest price since May 1997 when the price was $3.20 per pound, as reported by CNN Money on Feb. 18.
Leading coffee sellers, Starbucks and J.M. Smucker- the owner of Dunkin’ Donuts and Folgers- have increased prices, and are expected to respond to the new price increase for beans with yet another increase of their own, according to CNN Money. “Earlier this month, Smucker said it would once again hike prices, by an average 10 percent.”
An extreme demand for coffee combined with poor harvests caused by awful weather conditions led to the price increase. “Some imagine this just as inflation, but it is a combination of the growing demand for different types of coffee and the poor harvests we have had in past years,” said Hector Galvan, a senior trader at RJO Futures in the Feb. 18 CNN Money article.
The future for coffee lovers seems pricey, but a couple of students claim the increase in price will not decrease their dependency and purchase of the energizing beverage.
“I definitely drink coffee a lot; I don’t know if it’s necessarily because I need the caffeine or if I’m addicted to the concept I need it,” stated sophomore secondary education and history major Meaghan Dillon. “I will still continue to buy it, I will probably just complain about it.”
“I have about two cups a day; sometimes I rely on it for the caffeine in the morning, sometimes I just like it for the sweet taste as a dessert after lunch,” saidsophomore government and politics major Caroline Rubin. “I’ll probably just buy it at the same rate I do now, because I love it and I can’t stop.”
However, the students did have suggestions for saving money to compensate for the increased price of their caffeine craze.
“I know some places if you bring a reusable mug they will discount it, which is something I will try more if prices keep on going up,” noted Dillon.
“I definitely recommend getting a Starbucks card,” commented Rubin. “You get points or stars when you purchase and then you get rewards for how many stars you have, like free syrups and stuff.”