Coffee Predictions: Market breaks 34 year record
April 23, 2011 by baldguy · Leave a Comment
Well, it was bound to happen…on April 21, the coffee market broke the $3.00 a pound barrier. This movement on the C market breaks a 34 year old record that has weathered many a storm. According to a post in the Guardian the price increase is a result of ” poor harvests of high-grade arabica coffee beans and a growing taste for gourmet coffee among burgeoning middle classes in China, Brazil, Indonesia and India”.
What does that mean for the crew at Bald Guy Brew Coffee Roasting Company? First off, it means that the coffee we have on reserve will give us a couple of months to see whether or not the C market will even out. Second, don’t be surprised to see Folgers and friends raising their prices for a fourth time this year.
Finally, the deal breaker will be the Brazilian Harvest. Since Brazil is the largest producer of coffee in the world, a poor harvest will rock the C market as the demand for coffee from the Americas will drive the price through the roof to make up for the shortage.