We’ve had to deal with a lot of shortages over the past two years and now there’s more bad news. Coffee stockpiles in Brazil, the biggest producer globally, are headed for a record low meaning prices are likely to continue to rise. You can blame La Nina.
Add to that sobering news is the fact that global demand keeps rising, with consumption this season up 1.5 per cent after a 2 per cent increase last year, according to research firm hEDGEpoint Global Markets.
Stockpiles “are so low that even if we have a good crop next year, Brazil may just barely have enough to serve demand”, says Nelson Carvalhaes, a board member of exporters group Cecafe. “We just need to have the rain.”
If you think $5 for a flat white is a stretch, the same cuppa in London with cost $5.70 and in Tokyo and Paris, the price can top $6.50.
How much is too much for a cup of coffee? Do you have a home espresso machine?
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