The Cut Throat World of Coffee Prices

This afternoon, I went to Caffe Cardosi in Thurso for my regular coffee and scan of the newspapers, and had the inconvenience of returning to my purse for another 15p as I was informed that the brownish liquid with a spot of frothed milk (known as a macchiato) had increased in price by over 10%.

At first glance, this seemed counter-intuitive as this week the Daily Record predicted a 40% fall in coffee prices.   On closer inspection, I saw this is due to a fall in cost for Robusta beans, which are the primary source of instant coffee and hit a seven year high in 2006 following poor harvests in Vietnam.

So, good news for Reid’s in Thurso, where they spoon the instant coffee into the mug before your eyes. Not good news for drinkers of ground coffee, which tends to Arabica green beans as this has been predicted by Kraft amongst others to be set for a dramatic increase.

This is not the first price shock. Hurricane Katrina in 2005 damaged some 1.6 millions 60 kg bags of green coffee beans, or almost 2% of the world’s supply at that point.

Oh, the pain.

Advertisements

2 Responses to “The Cut Throat World of Coffee Prices”

  1. Полезный идиот Says:

    You’re turning into Wardy, Alec.

  2. efrafandays Says:

    Well, Wardy’s a ponce.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: