{"id":9277,"date":"2025-02-27T22:00:30","date_gmt":"2025-02-27T22:00:30","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/why-are-coffee-prices-rising-in-the-u-s\/"},"modified":"2025-02-27T22:00:30","modified_gmt":"2025-02-27T22:00:30","slug":"why-are-coffee-prices-rising-in-the-u-s","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/why-are-coffee-prices-rising-in-the-u-s\/","title":{"rendered":"Why are coffee prices rising in the U.S.?"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p>It&#8217;s not only <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/egg-prices-bird-flu-inflation-stores-limit-purchases\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">the surging cost of eggs<\/a><\/span> that is making breakfast pricier these days \u2014 the price of coffee is also spiking because of a confluence of factors.<\/p>\n<p>The cost of wholesale arabica beans \u2014 the most popular on the planet \u2014 surpassed $4 a pound for the first time this month and have doubled over the past year, running up from less than two bucks a pound in January 2024 to a record $4.30 a pound on February 13, 2025, according\u00a0<a href=\"https:\/\/www.ice.com\/products\/15\/coffee-c-futures\/data?marketId=6996425&amp;span=1\" target=\"_blank\" rel=\"nofollow noopener\">to<\/a>\u00a0futures contracts traded in New York.\u00a0<\/p>\n<p>For consumers still grappling with high food costs, that means soaring prices in the grocery aisle. The retail price of ground coffee hit an all-time high of $7 a pound in January, up 75% from $4 in January 2020, government data\u00a0<a href=\"https:\/\/fred.stlouisfed.org\/series\/APU0000717311\" target=\"_blank\" rel=\"nofollow noopener\">shows<\/a>.\u00a0<\/p>\n<p>Coffee drinkers are likely to see even steeper prices over the next three or four months, with Andrea Illy, chairman of Italian roaster and global retailer Illycaff\u00e8, recently\u00a0<a href=\"https:\/\/www.youtube.com\/watch?v=GxQCaOTQ87A\" target=\"_blank\" rel=\"nofollow noopener\">predicting<\/a>\u00a0that bean prices could climb 25% this year.\u00a0<\/p>\n<p>Unlike some products, coffee is viewed as essential by many consumers, making them more willing to pay up for their java fixes. Without a direct substitute for coffee, retailers and suppliers generally have greater room to raise their prices.\u00a0<\/p>\n<p>&#8220;Coffee, as we all know, it&#8217;s a pass-through category,&#8221; J.M. Smucker CEO Mark Smucker said in an earnings\u00a0<a href=\"https:\/\/seekingalpha.com\/article\/4740420-the-j-m-smucker-company-sjm-q2-2025-earnings-q-and-a-call-transcript\" target=\"_blank\" rel=\"nofollow noopener\">call<\/a> in November. &#8220;We&#8217;ve been very pleased with our performance in the quarter, despite the fact that we continue to see significant inflation,&#8221; said the executive, whose company&#8217;s brands include Folgers and Cafe Bustelo.\u00a0<\/p>\n<h2>Cost of climate change<\/h2>\n<p>As with the cost of other global commodities, supply and demand are a large part of the equation. Getting caffeinated is likely to become an ever-costlier proposition because of rising temperatures, droughts and excessive rains striking Brazil and Vietnam, the world&#8217;s two biggest producers.\u00a0<\/p>\n<p>The 2024 coffee growing season saw a drought followed by August frost in Brazil, and flooding in October came in the wake of a drought in Vietnam. Brazil&#8217;s coffee exports during the month were down 7.4% year-over-year and Vietnam&#8217;s December export fell nearly 40%, according to a January\u00a0<a href=\"https:\/\/www.ico.org\/documents\/cy2024-25\/cmr-0125-e.pdf\" target=\"_blank\" rel=\"nofollow noopener\">report<\/a>\u00a0from the International Coffee Organization.\u00a0<\/p>\n<p>&#8220;When the crop in Brazil does not produce as much coffee as expected in the year, that causes the prices to shoot up,&#8221; Gregory Zomfotis, founder and CEO of Gregory&#8217;s Coffee, told CBS News.\u00a0<\/p>\n<p>&#8220;Some of the major producers have really not seen the production levels that were expected and quite far from it, so that&#8217;s caused a severe spike in the price of coffee,&#8221; added Zomfotis, whose company operates more than 50 stores nationwide and expect to purchase up to 700,000 pounds of coffee this year.<\/p>\n<p>Amid those supply constraints, global demand for coffee in growing. For example, consumption is up 150% over 10 years in China \u2014 the world&#8217;s most populous country, according\u00a0<a href=\"https:\/\/apps.fas.usda.gov\/psdonline\/circulars\/coffee.pdf\" target=\"_blank\" rel=\"nofollow noopener\">to<\/a>\u00a0the U.S. Department of Agriculture.\u00a0<\/p>\n<figure class=\"embed embed--type-video embed--type-content_video is-video embed--float-none embed--size-medium \"><figcaption class=\"embed__caption-container\"><a href=\"https:\/\/www.cbsnews.com\/video\/breaking-down-the-trillion-dollar-risk-posed-by-climate-change\/\" class=\"embed__headline-link\" data-invalid-url-rewritten-http=\"\"><\/p>\n<p>          <span class=\"embed__icon\"><br \/>\n            <svg viewbox=\"0 0 32 32\" aria-hidden=\"true\"><use xlink:href=\"#icon-video\"\/><\/svg><\/span><\/p>\n<p>          <span class=\"embed__headline\">Breaking down the trillion-dollar risk posed by climate change<\/span><\/p>\n<p>          <span class=\"embed__video-duration\">04:02<\/span><\/p>\n<p>                      <\/a><\/p>\n<\/figcaption><\/figure>\n<p>Other factors also are contributing to the pricing pressures, including politics. President Trump on Tuesday vowed to proceed next week with his previous threats of 25% tariffs on Canada and Mexico. A levy on Mexico, whose largest coffee export market is the U.S., would likely push prices up further.\u00a0<\/p>\n<p>Separately, a new European Union <a href=\"https:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/?uri=CELEX%3A32023R1115&amp;qid=1687867231461\" target=\"_blank\" rel=\"nofollow noopener\">law<\/a> that is now set to take effect in December prohibits the sale of products, including coffee, if companies can&#8217;t show they are not linked to deforestation\u00a0 \u2014 a bid to lessen greenhouse gas emissions and biodiversity loss. That effort to address the climate crisis could further tighten supplies of coffee beans.<\/p>\n<p>Geopolitical conflicts are also a factor in rising coffee costs. Fighting between Israel and Hamas has caused havoc in the Red Sea, which carries <a href=\"https:\/\/blogs.worldbank.org\/en\/developmenttalk\/navigating-troubled-waters--the-red-sea-shipping-crisis-and-its-\" target=\"_blank\" rel=\"nofollow noopener\">30%<\/a> of the world&#8217;s container traffic, including coffee from Vietnam. Slowdowns in the Red Sea and the Suez Canal meant as many as 5 billion bags of coffee had not yet arrived in Europe, the International Coffee Organization <a href=\"https:\/\/www.ico.org\/documents\/cy2024-25\/cmr-1224-e.pdf\" target=\"_blank\" rel=\"nofollow noopener\">reported<\/a> in December.\u00a0<\/p>\n<p>    <!-- data-recirc-source=\"chartbeat\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation component--type-recirculation-collection\">\n<div class=\"component__heading-wrapper\">\n<h3 class=\"component__title\">ClimateWatch: Climate Change News &amp; Features<\/h3>\n<p>                      <a href=\"https:\/\/www.cbsnews.com\/feature\/climate-change\/?intcid=CNI-00-10aaa3a\" class=\"component__view-more component__view-more--lg\" data-invalid-url-rewritten-http=\"\"><br \/>\n              More<br \/>\n              <svg viewbox=\"0 0 32 32\" class=\"icon__caret-right\" aria-hidden=\"true\"><use xlink:href=\"#icon-caret-down\"\/><\/svg><\/a>\n                  <\/div>\n<p>                  <a href=\"https:\/\/www.cbsnews.com\/feature\/climate-change\/?intcid=CNI-00-10aaa3a\" class=\"component__view-more component__view-more--sm\" data-invalid-url-rewritten-http=\"\"><br \/>\n            More<br \/>\n            <svg viewbox=\"0 0 32 32\" class=\"icon__caret-right\" aria-hidden=\"true\"><use xlink:href=\"#icon-caret-down\"\/><\/svg><\/a><br \/>\n                    <\/aside>\n<p><!-- tags --><\/p>\n<div class=\"content-author\">\n      <a href=\"https:\/\/www.cbsnews.com\/team\/kate-gibson\/\" class=\"content-author__name\" data-invalid-url-rewritten-http=\"\">Kate Gibson<\/a><\/p>\n<div class=\"content-author__bio\">\n<div class=\"content-author__full-information\">\n<p class=\"content-author__text\">Kate Gibson is a reporter for CBS MoneyWatch in New York, where she covers business and consumer finance.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cbsnews.com\/news\/why-are-coffee-prices-so-high-inflation\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s not only the surging cost of eggs that is making breakfast pricier these days \u2014 the price of coffee<\/p>\n","protected":false},"author":1,"featured_media":9278,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[3280,957],"class_list":["post-9277","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us","tag-coffee","tag-inflation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why are coffee prices rising in the U.S.? - World News<\/title>\n<meta name=\"description\" content=\"Consumers still coping with high food costs face scalding hot coffee prices, with retail costs up 75% in recent years.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/site.itshrt.com\/worldnews\/why-are-coffee-prices-rising-in-the-u-s\/\" \/>\n<meta property=\"og:locale\" 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