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The Almighty Buck

Coffee at Highest Price in 47 years (semafor.com) 107

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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  • 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.

    • 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.

      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]

      • 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. ...

        Even worse, his supporters believe him and can't even be bothered to Google tariff [wikipedia.org] to see that he's wrong -- oh, wait ...

      • 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.

        • Thank God for Trump tariffs! Now I'm going to take an appreciating look at all of those now protected US factories that are producing every durable consumer good needed and desired in our modern world...

          (scans the horizon)..(DESPERATELY scans the horizon...)

          Uh oh... +_+

    • 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

    • "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.

    • 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.

        • A term I've seen used recently is 'reshoring'. Right now, it seems like almost every kind of gadget I want to get, diagonal cutters, lopers, a garlic press, is made in China. This is, from what I've read, thanks to a deliberate policy of the Chinese government of subsidizing all sorts of manufacturing industries, and not because of some inherent efficiencies in the market place. Tariffs are supposed to be a defense against this. Whether they are a good defense against this or not, I don't know. But the

      • 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.

  • 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.

    • 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?.
    • We should all be paying more for coffee, so that the farmers can make a sustainable living

      Oh good. After 50 years of trickle-down theory not working, you've devised another version of it. This time it will surely work well and not make the corporations wealthier with no benefit to the farmers.

      • That's not what "trickle-down economics" means. Reference: https://en.wikipedia.org/wiki/... [wikipedia.org]

        This proposal is more like "trickle-up", which actually will work if the companies that we patronize are committed to fair trade and paying a sustainable price (in the sense that the farmers can sustain themselves) for the product. The customers end up paying what it actually takes to sustain production.
      • Not really trickle down. More like shortening the supply chain. I buy relatively expensive imported coffee that is locally roasted, then I brew my own. Most of the cost of a cup of coffee for me is the milk.

    • 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.

    • 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

    • 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.

    • Is there a way to get an extra 10 per cup to the farmer, instead of having the increased price stop at the middlemen? Any donation account for Juan Valdez and his donkey? Not all of us have local roasters or small coffee farms in the immediate vicinity.
    • 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?
    • 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!!!

  • 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.

  • They control the weather! And somehow control other countries crop production! /s

Doubt is not a pleasant condition, but certainty is absurd. - Voltaire

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