The price of your morning cup of coffee is going up – here's why
There’s a storm brewing for anyone who can't start their day without a cup of joe.
Coffee prices have been steadily climbing since January, and experts believe more increases are on the way, in part due to climate change.
“Coffee prices at retail have gone up about 17 per cent so far since January and we are expecting more increases by the time we're done with 2021,” said Sylvain Charlebois, senior director at the agri-food analytics lab at Dalhousie University in Halifax.
The weather is causing an impact. In late July, Brazil, which is one of the largest coffee producers in the world, saw snow for the first time in years, affecting the harvest of Arabica beans and sending coffee price higher.
“Futures actually went over $2 U.S. a pound for the first time since 2014, and it really spiked very rapidly,” explained Charlebois.
Higher transport costs are also to blame.
And the recent UN report on climate change has experts worried more price hikes are on the way for the weather-sensitive crop.
Worldwide coffee demand keeps rising, said Charlebois.
“Even in china Asia. They're getting more acquainted with a strong coffee, essentially, and so demand for Arabica beans is going way up,” he said.
And there’s no doubt Canadians love their coffee. The average Canadian consumes 5.5 kilograms of it every year, making us one of the most coffee-loving nations in the world.
The price hikes are a positive, though, for struggling producers, said Andrew Kyres of the Canadian Roasting Society.
“The majority of the coffee we source, like 90 per cent, is from small-holder farmers who basically live below poverty line and struggle daily wondering if they even want to continue growing a crop like coffee for the margins they receive,” he said.
Many cafés say higher bean costs will likely lead to higher prices.
“The profit isn't crazy right now,” said Matisse Gill, head roaster of Melk café. “So we do need to match it and a bit more than what it is now.”
CTVNews.ca Top Stories
DEVELOPING Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
BREAKING Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
The Body Shop Canada explores sale as demand outpaces inventory: court filing
The Body Shop Canada is exploring a sale as it struggles to get its hands on enough inventory to keep up with "robust" sales after announcing it would file for creditor protection and close 33 stores.
Vicious attack on a dog ends with charges for northern Ont. suspect
Police in Sault Ste. Marie charged a 22-year-old man with animal cruelty following an attack on a dog Thursday morning.
On federal budget, Macklem says 'fiscal track has not changed significantly'
Bank of Canada governor Tiff Macklem says Canada's fiscal position has 'not changed significantly' following the release of the federal government's budget.