Wake Up And Smell The Higher Coffee Prices

[jeffrey]

Coffee prices are on the rise again. After a 14% increase in retail prices on ground coffee last December, Proctor & Gamble raised prices for its retail ground coffee 12% yesterday with experts predicting that all major coffee companies will follow suit.

The coffee price increase is attributed to a large run up in price for arabica coffee bean futures on the New York Board of trade. These prices have increased 40% since last December and the last coffee price increase.




For the last four years, coffee prices have remained depressed due to oversupply. The current rise in prices is attributed by industry expectations of a global supply deficit in coffee beans this year. Predictions are for world consumption to be about 115 million 60 kilogram bags which would exceed output by approximately 8 million bags.