Why your coffee costs more

Coffee fans nationwide have experienced sticker shock over the last year when tossing their favorite brands into the grocery cart. Coffee is more expensive than ever. Two Baton Rouge-based brands, Community Coffee and River Road Coffees, have both had to hike prices, along with national brands Dunkin Donuts, Folgers, Starbucks, Maxwell House and others. I spoke with John and Ian Melancon of River Road Coffees last week whose comments mirrored those swirling in the coffee world: The price increases of green coffee, the raw material imported by stateside coffee producers, stems from a handful of factors, including increased demand for coffee among emerging economies that formerly didn’t consume it (China being one); sustained demand in traditional coffee markets like the US; pests and other challenges in Brazil and Colombia; and speculative trading in coffee futures, which, like the stock market, can fluctuate wildly. “Over the last 12 months, the cost of green coffee has more than doubled,” said Ian Melancon. Of course that’s necessitated a retail increase. Coffee isn’t alone on that front. Many foods are now higher. In July, the most recent producer price index numbers available revealed consumer foods were up .6 percent for the second month in a row, thanks largely to higher beef and fresh fruit prices.

Grocery bills might force consumers to retool their shopping lists, but coffee isn’t among the sacrifices they’re willing to make. Demand in the US and abroad keeps increasing – up by 2% worldwide each year. I’m certainly not cutting back, but I am trying to brew only what we’ll drink and waste less.