Coffee prices up 43%
Coffee prices have been up for about 43 percent in the past three months.
Folgers, Espresso Italia, Dunkin' Donuts, and Millstone are enjoying high retail coffee prices due to the rising prises. Coffee for December delivery started at $US1.9865 per pound before settling at $US1.9455 ($2.12) a pound on Wednesday.
Last month, the JM Smucker Company raised the price most of its coffee products under the brand names of Folgers, Folgers Gourmet Selections, Dunkin' Donuts, and Millstone by as much as 9 percent.
By September, the Green Mountain Coffee Roasters will also increase North American prices on K-Cup portion packs for the Keurig Single-Cup brewing system by 10 percent to 15 percent.
The situation is different with Starbucks Corporation. Starbucks spokeswoman Deb Trevino said that the company still is planning to absorb the costs management continues monitoring the situation.
US senator for New York Charles Schumer will be persuading US Trade Representative Ron Kirk to warn major coffee growers in Brazil and Vietnam against stockpiling their crops. Certainly, a decrease in coffee supply will bring prices further up.
In Australia, coffee is grown from Nimbin and Lismore, in New South Wales, to Cape York in far north Queensland. The Skybury plantation and the other larger plantations near Mareeba are fully mechanized.