Posted on 09/21/2021 6:27:25 AM PDT by blam
Robusta coffee prices continued to soar to record-highs this week as concerns deepen over the outlook from Brazil, the world's top producer.
"Cheaper robusta-coffee beans, used widely in instant-coffee beverages such as Nestle SA's Nescafe brands, are sold out in Brazil. After drought and frost ruined crops of the higher-end arabica variety favored by cafes like Starbucks Corp., local roasters are racing for robusta replacements and driving prices to new records each day," Bloomberg wrote.
Spot prices for Brazil robusta Espirito Santo have nearly doubled this year, up 356 reais per 60-kg bag, or about 87% to 769 reais.
Much of the price appreciation came after a freak cold snap decimated Brazil's coffee-growing regions in July/August. The unexpected weather was compounded by massive droughts, destroyed arabica crops, hence why robusta is being bought up in droves.
"There seems to be a consensus that 20% of all trees were affected," Sholom Sanik, an analyst at Friedberg Mercantile Group Ltd., said in a note. "Although more than half of the crop was harvested before the first frost hit, much of the fruit that remained unharvested will be lost."
In the past, US importers would quickly source from Vietnam, the second-largest producer, if there were weather-related issues in Brazil. But this time around, COVID restrictions, shortage of shipping containers, exorbitant freight costs, and port congestion have made it difficult and expensive to source from the Southeast Asian country.
According to a recent Barclays note, US importers like Starbucks are hedged out for more than a year to deal with price fluctuations. Though JM. Smucker, which owns the Folgers and Dunkin' coffee brands, recently warned that supply chain disruptions are rising costs that will impact its business.
"As we came into the fiscal year, we were anticipating mid-single-digit cost inflation as a percent of our total cost of goods sold," J.M. Smucker's Chief Financial Officer Tucker Marshall said. "Now we see high single-digit cost inflation."
Earlier this year, we warned that cheap coffee is no more, and a global deficit is coming. Even cheaper beans are hyperinflating away.
“Joe” and Joe both leave much to be desired.
Fortunately for Joe, I don’t drink coffee so this is one issue I don’t care aboutand he gets a break from me.
😁
Shortage du jour.
I am still working through my $125 bin of chlorine I bought in the fear build up of the last shortage.
Not only did I get ripped off but it also was loaded with what looked like the broken rejects they probably usually discard.
Outstanding coffee every time.
My husband had a Vietnamese colleague who gave him a bunch of Vietnamese coffee one time. Terrible stuff.
What I would REALLY love to have is a COUP of JOE!
Robusta coffee is awful.
I prefer Kenya AA.
I gave the drip thing a try a few years ago. I just never got enough into it. My friend that got me into it was a HUGE fan. I ended up buying several stovetop drip coffeemakers. I gave them all to goodwill.
Honestly, it’s all about convenience for me. They offered Keurig free at work and after a few months I was hooked. I still use the “refillable” keurig cup in the garage but once this last can of coffee is gone, I’ll probably start using the cups there too.
I’ve been watching too, and have been surprised that some big fear porn scenario was not painted about it to cause a coffee”shortage” and price increase.
Anyone who wants to really bring this country to its knees would do it most effectively through the coffee supply.
I’ve seen what people get like when there’s just an ice storm and power is out for a couple days. It’s ugly.
If you want easy and fast - go to a Vietnamese grocery store, pick up a porcelain cup with strainer (used for hot tea - they come as a set) and some paper coffee filters... When you get home put the paper filter in the tea strainer part and paper filter, put 3 tablespoons of coffee in - then pour boiling water over. It makes one cup of coffee...
Takes 1 minute longer than boiling water.
Cheaper in a store... but here’s what it kinda looks like:
Dang! Dutch Bros Coffee just went public.....Can they still turn a profit?
I have a years worth of coffee on hand, all vacuum packed and refrigerated.
I tried the Kirkland but didn't like it.
That one was my personal favorite before we switched to keurig. The first time I ever tried it was through a percolator and it was amazing. Frankly, when winter hits I may start making it in a percolator on the wood stove in the shop.
“Not Transitory” – US CEOs Warn Inflation Is “Unprecedented” And Becoming “Structural”
One of a gas stations big money makers that.
And a lot of those stations/truck stops now used those stupid self serve machine that grind the beans and run the hot water through and produce some of the nastiest crap you’ll ever sip on.
They could use half the grounds and get a better drink.
I’m watching prices increase every 1-2 weeks.
I always keep a years supply on hand because I am one of those crazy hoarders.
In a movie I watched last night the FBI referred to (ahem) 'your type' as a doomsday prepper.
I don’t know about “doomsday”, but I am prepared for the lefty zombie apocalypse.
Oh wait—that has already happened!
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