Coffee prices (and coffee futures) are having a somewhat schizophrenic year. Back in June/July, borer beetle infestations, crop fungi and climate change/drought took such a hit on coffee production. Thus, worldwide coffee prices hiked up – even by huge, already overly-priced chains like Starbucks. Folgers and other large commercial coffee producers adjusted their prices accordingly.
Last Monday, coffee prices hit a four year LOW. An ideal change in weather in Brazil, the world’s largest coffee producer, and other South American countries like Columbia, has arabica coffee plants churning out large and lucrative crops. So what does this mean for the consumer? Starbucks and Dunkin’ Donuts won’t be dropping prices, but these corporations will certainly be enjoying the increased profit margins. Maxwell House, Folgers, and other big-name supermarket brands have not yet, but are suspected to drop retail prices.
Prices are expected to drop even lower in the upcoming months/year, with experts predicting a “super harvest” (‘supersafra’) in 2014. It may be a few months before you see a drop in prices at your local grocery store, as price adjustments are usually made after quarterly reports become available to the public.