The price of your morning cup of coffee is going up – here's why
MONTREAL -- 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.”