A Terrible Year for Coffee Just Got Worse

[FakeNoose]

(Newser link) https://www.newser.com/story/310428/a-terrible-year-for-coffee-just-got-worse.html

COVID-related restrictions in 2nd-biggest grower, Vietnam, add to supply problems

By John Johnson, Newser Staff
Posted Aug 30, 2021 9:21 AM CDT

(NEWSER) – This has been a worrisome year for those in the coffee business because of a double whammy—first drought, then frost—in Brazil, the world's biggest grower. That has put more pressure on the world's second-biggest grower, Vietnam, to pick up the slack, but now Bloomberg reports on serious supply problems there as well. This trouble is related to COVID, not the weather, as Vietnam has imposed a strict lockdown on the exporting hub of Ho Chi Minh, as well as restrictions in key growing areas. All of which means exporters are struggling to get their beans out of the country. Worse, this is only adding to already existing problems such as a shortage of shipping containers and sky-high shipping rates related to the pandemic.

The upshot is that coffee prices—at least in the bulk shipping sense—are at their highest in four years (about $2 per ton), reports CNN. So far, chains such as Starbucks have been able to avoid jacking prices too much because they buy in advance and can hedge against these spikes. But that can't last forever. JM Smucker, which owns the brands Dunkin' and Folgers, warned last week that consumer prices might have to rise in the near future, and JDE Peet's (Peet's Coffee and Stumptown) have said much the same previously. (Also: Your morning cup of coffee may have an unpleasant origin story.)

- short article, no more at link -

Blurb is based on longer article from Bloomberg: https://www.bloomberg.com/news/articles/2021-08-27/global-coffee-supply-dealt-fresh-blow-by-vietnam-s-virus-curbs

[Wounded Bear]

1. Great, now there will be a run on coffee...

[NewHendoLib]

2. I get my green beans (home roaster here) from Sweet Maria in CA - their green bean prices

don't really show any increase. And they have plenty of great varieties from all over (I am partial to Ethiopia, Kenya, Guatamala, Burundi).

[lagomorph777]

5. I like Costa Rican myself

I haven't roasted in a while; have been too busy with work and caregiver duties. But I miss it. I can that perfect chocolatey roast with beans from my favorite plantation.

[NewHendoLib]

6. indeed. been home roasting since 2007. Spoiled!!!

[RobertDevereaux]

3. We've been with Atlas Coffee Club these past two years...

Single origin coffee. From a different country each month. No price increase yet.

We love it and we read each other Dear Amy aloud as we savor it.

[ret5hd]

4. All the way up to $2.00 a ton, eh???

Something tells me the market can handle it.

[Igel]

7. Yeah, I'm missing a link or 20.

Retail I pay about $16,000/ton. (Not that I buy coffee by the ton.)

That bulk wholesale price is a really insignificant fraction of the price. Unless the story got the price wrong and it's a $2/ton increase (even then, it really depends on what the price was last quarter).