You may need to start saving in order to afford your morning coffee run, as frosty conditions in Brazil’s coffee-growing region have caused the price for beans to shoot up higher than they have in six years.
According to the Wall Street Journal, futures for arabica beans jumped to $2.08 a pound Tuesday, the highest level in New York since 2014. The outlet said Brazil -- the world’s largest coffee producer -- is experiencing its worst frost in more than two decades.
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According to the Wall Street Journal, a drought that also impacted the crop preceded the cold snap. Due to the cold temperatures, snowfall and frost, a chunk of next year’s coffee crop is expected to be missing.
For example, José Marcos Magalhães, president of the Minasul coffee cooperative and also a grower, told the outlet he expects to lose two-thirds of the 2022 harvest on his farm.
“I normally produce 12,000 bags, and now I think I’ll lose about 8,000,” José Marcos Magalhães said.
According to the International Coffee Organization, “world production will barely meet world demand,” during the 2021-22 coffee year.
Traders are spooked by these prospects, according to reports.
Concerns about the coffee harvest pushed futures up by 30 percent this month.
While coffee growers and market traders are anxious about the harvest, at least one go-to spot for many coffee drinkers said increased prices won’t be passed on to customers.
CNN reported Thursday that Starbucks, a company that exclusively buys arabica coffee beans, doesn’t plan to raise menu prices.
"The volatility in the coffee market does not impact retail pricing plans, and our pricing strategy remains unchanged," a Starbucks spokesperson told CNN.