Why is Coffee Getting So Expensive? - In a Nutshell

-> Unpredictable weather in Brazil and Vietnam (the 2 biggest coffee producers)

-> Low yields

-> To make up for shortfalls, big commodity buyers start buying crop from low-end specialty markets.

-> Demand pushes Arabica market price up

-> High-end coffee producers see the high market price and start harvesting crops early/unripe, rushing to get it on the market and sell high

-> Exporters move to disincentivise this behaviour by guaranteeing even higher prices for high quality lots

-> I pay more, you pay more.

Next
Next

What is Hoppy Coffee?