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The Almighty Buck

Coffee at Highest Price in 47 years (semafor.com) 188

An anonymous reader shares a report: Coffee beans hit their highest price in 47 years, driven by bad weather in Vietnam and Brazil, the biggest producers of robusta and arabica beans respectively.

Brazil saw its worst drought in 70 years this year followed by heavy rains, raising fears that next season's output will drop, further pinching already tight global supplies. Vietnam has itself had three years of low output.

Arabica beans hit $3.18 a pound on Wednesday, leading Nestle, the world's biggest coffee company, to increase prices. As well as climate concerns, future prices are being raised by worries about tariffs: Roasters "will try to import now, because otherwise you will be paying tariffs later," one trade analyst told the Financial Times.

Coffee at Highest Price in 47 years

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  • by ihavesaxwithcollies ( 10441708 ) on Thursday November 28, 2024 @01:42PM (#64977943)

    future prices are being raised by worries about tariffs: Roasters "will try to import now, because otherwise you will be paying tariffs later," one trade analyst told the Financial Times.

    Fucking Joe. Thanks for threatening the world with tariffs, Joe!

  • by AlanObject ( 3603453 ) on Thursday November 28, 2024 @01:43PM (#64977945)

    As well as climate concerns, future prices are being raised by worries about tariffs

    Trump proclaims that he "loves tariffs" which is stupid, but I have hard time believing that even he could be that stupid. Exactly what coffee growers are there in the U.S. that he is trying to "protect?"

    But apparently the futures markets believe he is actually that stupid. We'll see.

    • by ArchieBunker ( 132337 ) on Thursday November 28, 2024 @01:49PM (#64977969)

      Trump proclaims that he "loves tariffs" which is stupid, but I have hard time believing that even he could be that stupid.

      He honestly believes tariffs are paid by the other countries. But then again he did somehow manage to bankrupt several casinos.

      Exactly what coffee growers are there in the U.S. that he is trying to "protect?"

      Some coffee is grown in Hawaii but on the global scale its closer to a rounding error.

      But apparently the futures markets believe he is actually that stupid. We'll see.

      https://www.pbs.org/newshour/p... [pbs.org]

      • by ceoyoyo ( 59147 )

        I don't think you're giving him enough credit. Tariffs are a wonderful campaign promise. They're a tax that the people love. They think you're fighting for their jobs, protecting them from evil foreigners, AND you can also promise tax cuts or more spending and not look delusional. Win win.

        As for actually implementing them, well, you might want to be careful if you want to get re-elected. But if you don't have to worry about that, go nuts.

      • by Bobartig ( 61456 )

        Another observation is that there was a correlation between companies that made political donations to Trump and co, and those who received exemptions from tariffs. So, stupefyingly, it appears that some of these broad tariffs are just a very basic protection racket. Trump raises the price of *everything* by 20%, then says to literally everyone, "hey, that's a very nice business you got there, shame if you had to pay 20% more in taxes. Why not kick us a few million, then you can "enjoy" the higher prices wh

    • by Powercntrl ( 458442 ) on Thursday November 28, 2024 @02:31PM (#64978049) Homepage

      Trump proclaims that he "loves tariffs" which is stupid, but I have hard time believing that even he could be that stupid.

      Have you even tried to watch one of his rallies? I had to turn it off because it was nothing but incoherent stream-of-consciousness rambling. I really don't get the appeal of the guy, other than the fact that a substantial portion of our electorate just absolutely loathes Democrats.

      I'd say it's probably a stretch at this point to assume Trump's age addled mind can even contemplate the process of brewing coffee, let along where it comes from.

      • Re: (Score:2, Interesting)

        by Powercntrl ( 458442 )

        Oh, modded "troll" because I pointed out the president-elect is fucking senile. The man performed mock oral sex on a microphone [c-span.org], and also randomly danced for a half hour at a campaign event. [cnn.com] During his previous administration, he stored classified documents in a bathroom. [youtube.com] You think his mind has improved with age?

        Obviously, enough of the American public was either ignorant to all this or simply just didn't care, because Trump won the election. The American public being collectively willing to let this al

        • by 93 Escort Wagon ( 326346 ) on Thursday November 28, 2024 @04:09PM (#64978223)

          Actually, I'm banking on the "incompetent" part saving us. If he brought in competent people instead of going for the suck-ups, the next four years would likely end up pretty bad.

        • by fahrbot-bot ( 874524 ) on Thursday November 28, 2024 @06:19PM (#64978369)

          ... Trump won the election.

          By just less than 50% of the popular vote and, as of Nov 20, about a 1.62% margin (2.5M votes) over Harris -- so *not* a "landslide" or a "mandate".

          The American public being collectively willing to let this all slide ...

          Well, 49.9% of them anyway -- for now. This will probably change once his tariffs take effect and he starts deporting all the migrant farm and construction workers and prices for imported goods and new housing start climbing.

          For example, several articles note that about 70% of things sold at Walmart are imported, usually from China or India, and a LOT of people, including those who voted for him, shop at Walmart. Several companies including Walmart and Home Depot have already said they're getting ready to raise prices because of impending tariffs.

      • by ewibble ( 1655195 ) on Thursday November 28, 2024 @03:16PM (#64978135)

        Well when group A loathes group B, you its pretty much ensures group B will eventually loathe group A.

        You don't have to understand why people like Trump, Just accept they do and they don't have to be morons, or evil to do so.

        I have guesses why people support Trump, my best guess is that they have seen decades of their watching their jobs go overseas, and they just want a change, any change since the current system isn't working for them. They are voting the other people out not voting Trump in. But I am sure there are multiple reasons to vote for Trump and I am just speculating.

        • by Powercntrl ( 458442 ) on Thursday November 28, 2024 @03:48PM (#64978181) Homepage

          You don't have to understand why people like Trump, Just accept they do and they don't have to be morons, or evil to do so.

          It just makes you lose faith in democracy when someone can be a terrible candidate by objective standards and a good portion of the electorate is still "that's my guy!"

          To use a car analogy, as much as I don't like the Tesla Model 3 that I test drove a little over a year ago, I'd still admit that it's a perfectly serviceable car for someone who doesn't mind all of Tesla's unconventional design choices. It will get you to and from work, haul your groceries, and do pretty much all the things you'd expect out of a modern mid-size sedan. I can totally imagine someone else being completely satisfied with it; it's just not for me.

          I can't do the same with Trump. Even if I was a hardcore conservative, I couldn't imagine believing that Trump would deliver the change I desired. It's clearly obvious his mental state is failing. To continue the car analogy, it's like someone was thrilled that they'd just bought a rusty scrap heap from the local buy-here-pay-here lot, it's leaking oil and barely runs, and when I tell them they've likely just wasted their money, the owner of the new-to-them car just tells me "fuck off, this is a great car!"

          • Winston Churchill is supposed to have said something along the lines of Democracy is a terrible form of government, it's just better than all the others. I tend to agree with that. When people say they've lost faith in democracy, what do they plan to replace it with? Democracy can work pretty damn well! But it has to be maintained! My perception is that various special interest groups gradually game the system and weaken it.

            I saw a Scientific American Frontiers TV documentary many years back about a gu

          • It just makes you lose faith in democracy when someone can be a terrible candidate by objective standards and a good portion of the electorate is still "that's my guy!"

            The reason it works (despite the obvious problems you pointed out) is because alternative methods of choosing the leader have larger drawbacks. Hereditary monarchy? Oligarchy? National examination? All can be (and will be) gamed.

    • Re: (Score:3, Interesting)

      Trump proclaims that he "loves tariffs" which is stupid, but I have hard time believing that even he could be that stupid.

      Plenty of stupid people like tariffs, and Trump cares more about his ideas being popular than sensible.

      H.L. Mencken once said that every complex problem has a solution that is simple, obvious, and wrong.

      Tariffs are one of those solutions. It takes at least five minutes to understand why tariffs don't work, which is more intellectual effort than most voters are willing to exert.

      Exactly what coffee growers are there in the U.S. that he is trying to "protect?"

      Hawaii grows coffee.

    • by mjwx ( 966435 )

      As well as climate concerns, future prices are being raised by worries about tariffs

      Trump proclaims that he "loves tariffs" which is stupid, but I have hard time believing that even he could be that stupid. Exactly what coffee growers are there in the U.S. that he is trying to "protect?"

      But apparently the futures markets believe he is actually that stupid. We'll see.

      Didn't your people rebel over additional taxes imposed on a hot beverage? When will we see the Larger Than Usual Charleston Coffee Kerfuffle?

      • Didn't your people rebel over additional taxes imposed on a hot beverage?

        I don't know who "your people" is supposed to refer to here but there is a bigger picture that bears mention. This is not an issue of paying more tax of any specific item. It has everything to do with stupid, myopic, and deceptive tax policies that raise the tax burden on consumers in the lower 80% of the income earners in the country in the name of "protecting" jobs or whatever in some industry which mostly doesn't even exist.

        And you can bet whatever you have in your wallet if such proposal does go thr

        • by narcc ( 412956 )

          I don't know who "your people" is supposed to refer to here

          Then why are you replying?

          "your people", very obviously, refers to Americans. You are commenting on a US site about an article about coffee prices in the US. You don't even need the Boston Tea Party reference, which you also seem to have missed.

    • "Exactly what coffee growers are there in the U.S. that he is trying to "protect?""

      The one that comes to mind is Kona from Hawaii. I'm not quite sure how much of an impact tariffs on Mexico, Canada, and China would have on coffee beans, but it doesn't seem like it would have enough impact to protect the wildly overpriced Kona coffee market. They're fine. Maybe above average. But they're like 100% more expensive in many cases.

      • Kona coffee is considered one of the world's best and as such it's considered well worth the price. If you want to see a coffee that's really wildly overpriced, try pricing some Jamaican Blue Mountain Coffee [wikipedia.org], and see what "overpriced" really means.
        • by ceoyoyo ( 59147 )

          Kona coffee is delicious, and well worth the price... in Hawaii. I wouldn't call Jamaican Blue Mountain weirdly overpriced though. Just overpriced. Weirdly overpriced would be kopi luwak.

        • Kona has a much better marketing budget. And it seems to have worked.

          Kona's good. It is not in the top tier. It earned its reputation before the modern market where people can get imported coffee from anywhere around the world.

          Kona might compare favorably to Columbian, but it's sort of meh compared to many of the beans from places like Ethiopia.

    • Import duties encourage local production. That translates into more local employment and a better foreign exchange balance. This is economics 101. Too much free trade is not a good thing - unless you own the mega factories in the far east.
      • by XXongo ( 3986865 ) on Thursday November 28, 2024 @04:50PM (#64978271) Homepage

        Import duties encourage local production. That translates into more local employment and a better foreign exchange balance. This is economics 101.

        No, actually it's not. You apparently have never taken a course in economics, because pretty much all economists, starting right with Adam Smith, agree that import duties (aka tariffs) raise prices all around and are bad for the economy in pretty much every way. The reasons for this were discussed in your Economics 101 text, or would have been if you had taken it.

        No, they don't even help balance of trade. They protect inefficiencies in production, meaning that your products are too expensive to compete in markets that aren't protected, and putting a tariff on imports will almost always lead to a retaliatory tariff on goods that you export (a "tariff war"), reducing your exports, wiping out any balance of payments gain you had from raising prices on imports, and making your economy worse because the companies that are now subject to the counter-tariff have lost their markets abroad.

        • by skam240 ( 789197 )

          It's funny, I remember when what you are saying dominated conservative political thought on the subject. Trump really just upends everything.

        • Trump is just using the threat of tariffs as a negotiating point. His stated goal seems to be to stop illegal immigration and fentanyl [apnews.com]. "Trump’s tariffs on Chinese goods inflicted more than three times as much damage to the Chinese economy as they did to the U.S. economy."

          As with all things Trump, it's not clear what he will actually do until he does it, and then it's not always clear what he did.
      • by ceoyoyo ( 59147 )

        It is! Except it's economics 101 from pre-1776. That's when Adam Smith explained how nations actually get rich, they started reversing mercantilist policies and, well, actually got rich.

    • > I have hard time believing that even he could be that stupid

      Yeah, you can watch the JD Vance interview on Joe Rogan if you want details.

      TL;DR: minimum on stuff that can't be made here (tropical foods like coffee) to maximum on finished goods that compete directly with US goods that are tariffed.

      e.g. US charges no tariff on a Swedish car but Sweden charges 100% tariff on American cars.

      Trump will match those, creating incentives for both will come far down from 100% (e.g. 15%)

      Pharmaceuticals and other cr

  • by TJHook3r ( 4699685 ) on Thursday November 28, 2024 @01:47PM (#64977959)
    We're going to have to assume that crop failure is going to be a more regular occurrence. My coffee addiction won't let me give up but I balk at paying £4 for a black coffee, which is where prices are going
    • by skam240 ( 789197 )

      We're going to have to assume that crop failure is going to be a more regular occurrence. My coffee addiction won't let me give up but I balk at paying £4 for a black coffee, which is where prices are going

      Caffeine works a million times better when it's not consumed habitually and most of the "I need coffee to wake up" feeling comes from the need to feed the habbit and wouldn't be there without it as long as you were getting enough sleep. Even as a sleep replacement you quickly run into very strong diminishing returns if you reach habbit level. Just something to consider.

  • good (Score:5, Insightful)

    by peterww ( 6558522 ) on Thursday November 28, 2024 @01:49PM (#64977965)

    Coffee has, for a very long time now, been priced too low. Most people have no idea how little money coffee farmers make. In a particularly bad year, they can starve to death.

    Yet the coffee you're sold is 100x higher in price. Most of the profit is going to middle-men and corporations. Ironically, the coffee you actually receive is often poor quality, because it's designed to be mass produced and quality isn't a concern.

    We should all be paying more for coffee, so that the farmers can make a sustainable living, and increase the quality of the coffee. We should be paying more for NGOs to ensure forests aren't cleared just to grow more coffee, and to prevent farmers from having to grow opium to make a profit. We should be paying the middle men less, and we should have better roasts that are more specific to improve flavor and choice.

    If you have a say in the coffee you buy, buy from local roasters, who buy from small farms, ensure sustainable agriculture practices, and living wages. You will spend a very small amount more money and the result will be better for everyone involved.

    • by rsilvergun ( 571051 ) on Thursday November 28, 2024 @02:56PM (#64978113)
      will help coffee producers make more money. I mean, it's not like the mega corporations in charge of everything would just squeeze them more would they?.
    • Coffee has, for a very long time now, been priced too low. Most people have no idea how little money coffee farmers make. In a particularly bad year, they can starve to death.

      Be that as it may this price increase has precisely zero to do with this and those farmers aren't getting a single extra cent for their livelihoods.

    • by Pollux ( 102520 ) <speter@@@tedata...net...eg> on Thursday November 28, 2024 @04:34PM (#64978245) Journal

      Most people have no idea how little money coffee farmers make. In a particularly bad year, they can starve to death.

      One of the most memorable moments of my life was when I visited a coffee plantation in the Philippines. He had a sack of 15 kilos of cherries in his work shed that he had picked that day. I asked him how much he was paid per kilo at the market. It was about $1.00 / kilo, and that whole day's worth of labor was going to nab him only $16. I offered him $40 on the spot, and he was as happy as a lark.

      But I also got to see what this kind of operation looks like. A lot of people don't understand that commodity coffee is ridiculously poor quality. Coffee cherries don't all mature at the same time on a tree, and it takes way too much time to go from tree-to-tree every day to only pike the ripe ones. Time was money, so he'd just go to a tree when all the cherries were large enough berries and strip it bare. About 3/4ths of them were green, but the customers don't know and don't care. Commodity markets roast the beans very dark to hide the imperfections, not to mention the occasional twig, beetle, & scat that finds its way into the bag. The markets available to him just pay him a flat rate per kilo, and there's no markets available to him that care about the quality.

      And then I found out how ridiculously time consuming it was to extract the beans from the cherries. Spoiler-alert: unless you have some modern machinery at your disposal, it's way more effort than anyone could imagine it to be. (And for that farmer in the Philippines that earns $10 - $20 / day, do you think he owns any modern machinery? And no, there aren't banks available to them to help them mechanize their harvest & production.)

      And this guy actually owned the land, which was passed down to him. There were plenty of laborers earning about $5-7 / day working plantations that they didn't own. But he was struggling to get by, and he was seriously considering selling his land just so that he could keep on living.

      Long-story-short, coffee drinkers are spoiled rotten, because they're exploiting cheap labor shielded from view by large corporations just to pay 50% of what they should be paying for their beverage of choice. And what they should be paying should be going to the farmer, not to the corporate overlords that exploit them.

      (If you want to really taste the full flavor of coffee, and pay someone a sustainable wage of $5 to pick it and roast it for you, you'd be paying at least $30 / pound of beans.)

    • US farmers solved this issue with growner-owned co-ops.

    • by Gabest ( 852807 )

      They can drink all the coffee they want, which is very expensive.

    • If the quality is as bad as you describe it, the farmers don't deserve to be well paid. If they are unhappy with their revenue they are free to find something else to work with.

      And why is opium bad? America wouldn't have a fentanyl crisis if there was a good supply of opium available. Duh!

  • Tea (Score:2, Insightful)

    Good thing I switched to Tea this year.
    • by mjwx ( 966435 )

      Good thing I switched to Tea this year.

      Which, depending on type, also comes from Asia or South America. China and India are the worlds top two producers.

      • Some tea is grown in South Carolina, more as a curio and tourist attraction than as a real product. It's drinkable, but expensive relative to the drinking quality.
    • Re:Tea (Score:4, Informative)

      by ShanghaiBill ( 739463 ) on Thursday November 28, 2024 @02:59PM (#64978115)

      Good thing I switched to tea this year.

      Generic coffee costs about $8 per pound, which makes about 25 cups, so 30 cents per cup.

      Generic black tea costs $2 for 100 bags, so 2 cents per cup.

      My morning drink is green tea, which is 5 cents per bag.

      With or without tariffs, tea is a cheaper habit than coffee.

      • And water is cheaper than tea. If you only consume purely for cost, then I recommend that. Actually don't drink anything at all. The amount of money you'd save when you die would be amazing, and is a one true way to beat the cost of living.

        Tea drinkers aren't just poor coffee drinkers who can't afford the habit.

    • Good thing I switched to Tea this year.

      Good thing picking tea leaves isn't super labor intensive and much of it comes from Asia and South America. :-)

  • Cuppa Josephus (Score:4, Interesting)

    by Pseudonymous Powers ( 4097097 ) on Thursday November 28, 2024 @01:58PM (#64977987)
    The highest price ever, or the highest price ever adjusted for inflation?
    • Re:Cuppa Josephus (Score:5, Interesting)

      by ShanghaiBill ( 739463 ) on Thursday November 28, 2024 @03:04PM (#64978123)

      The highest price ever, or the highest price ever adjusted for inflation?

      In America, the highest price ever, when adjusted for inflation, was in the Confederacy during the Civil War.

      Sometimes, when the pickets were within shouting distance, the soldiers would swap Union coffee for Confederate tobacco.

      • In America, the highest price ever, when adjusted for inflation, was in the Confederacy during the Civil War.

        If you're going to mention coffee and wars, seems like it's worth adding that during World War II, some people drank a coffee substitute [wikipedia.org] because they couldn't get the real thing. Of course, these days it doesn't seem like Postum is particularly cheap either.

  • by gweihir ( 88907 ) on Thursday November 28, 2024 @02:10PM (#64978011)

    Now take into account that with climate change, coffee will possibly vanish completely, and you begin to understand the scale of _that_ problem.

  • by Petersko ( 564140 ) on Thursday November 28, 2024 @02:38PM (#64978065)

    I have looked at the concerns around coffee. I understand the ecological, environmental, and exploitation issues with the industry. And on this topic I choose to look the other way. I love coffee. I cannot possibly pay attention to every single cause or concern. I donate time, money, and blood, to a variety of causes. But I'll keep drinking coffee as long as it is available. Sucks that the price is rising.

  • This is awful! it is not going to keep me awake at night!!!

  • All of the sudden (Score:2, Interesting)

    by Tailhook ( 98486 )

    Suddenly high prices for stuff make headlines.

    Weird.

    • by skam240 ( 789197 )

      Weird? Due to the run of global inflation we had we just came off a long run of hearing about high prices non stop.

    • All of the sudden

      At least for all intensive purposes.

I'd rather just believe that it's done by little elves running around.

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