By Rachel Lerman and Emily Wright. Illustrations by Giulia Bernardelli
Gone are the days of scrounging loose change for your daily caffeine fix: Coffee costs more. People now spend about $6 on average for a beverage at cafes and bakeries, according to the cashier checkout system Toast. Grocery store bean prices have soared, climbing 22 percent in the last three years.
So why does your cup of joe cost so much?
The percolating effects of changing weather patterns, international turmoil and elevated energy costs all have served to increase the cost of producing milk and beans, the key components of most coffee beverages. Add inflation and a labor shortage, and many shops have done what they see as the logical thing: raise prices.
“Every cup of coffee is a small miracle,” said Lauren Crabbe, owner of Andytown, a coffee shop in San Francisco that raised prices last year. “Just everything that goes into it.”
Here’s a breakdown of the global effort poured into your daily fuel.
**THE COFFEE**
Coffee crops — commonly grown in Brazil, Vietnam and Colombia, among other countries — are at the mercy of changing weather. Extreme weather in Brazil in 2021 reduced the expected harvest, sending wholesale coffee prices to their highest level in years.
Many small farmers are also struggling to make a profit as they deal with rising material costs and labor shortages. “Somebody can pick coffee all day long and make $5 for a day,” said Mayra Orellana-Powell, founder of Catracha Coffee. The company helps small-coffee producers in Santa Elena, Honduras, access the specialty coffee market, which has grown in popularity in the United States since the early 2000s and generally pays farmers better than commodity prices.
Overall, the commodity price for arabica coffee has jumped more than 40 percent since before the pandemic, climbing even further last year and dropping slightly this year.
By the time beans are roasted and sold to cafes, they often cost $10 or more per pound, depending on the blend, Crabbe said. And even if commodity prices go down, customers are unlikely to see their bills drop.
“Retailers, once they increase the price, tend not to lower it because they know their margins are going to be squeezed,” said Judy Ganes, president of J Ganes Consulting, which works with food and agricultural industries.
Orellana-Powell likes to remind people that their morning mug is the end result of a long and arduous process. “People don’t treat [coffee] as a luxury item,” said Lowell Powell, her husband and co-founder. “And they should.”
***Read more of the story here for free:*** [***https://wapo.st/40zcz9h***](https://wapo.st/40zcz9h)
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By Rachel Lerman and Emily Wright. Illustrations by Giulia Bernardelli
Gone are the days of scrounging loose change for your daily caffeine fix: Coffee costs more. People now spend about $6 on average for a beverage at cafes and bakeries, according to the cashier checkout system Toast. Grocery store bean prices have soared, climbing 22 percent in the last three years.
So why does your cup of joe cost so much?
The percolating effects of changing weather patterns, international turmoil and elevated energy costs all have served to increase the cost of producing milk and beans, the key components of most coffee beverages. Add inflation and a labor shortage, and many shops have done what they see as the logical thing: raise prices.
“Every cup of coffee is a small miracle,” said Lauren Crabbe, owner of Andytown, a coffee shop in San Francisco that raised prices last year. “Just everything that goes into it.”
Here’s a breakdown of the global effort poured into your daily fuel.
**THE COFFEE**
Coffee crops — commonly grown in Brazil, Vietnam and Colombia, among other countries — are at the mercy of changing weather. Extreme weather in Brazil in 2021 reduced the expected harvest, sending wholesale coffee prices to their highest level in years.
Many small farmers are also struggling to make a profit as they deal with rising material costs and labor shortages. “Somebody can pick coffee all day long and make $5 for a day,” said Mayra Orellana-Powell, founder of Catracha Coffee. The company helps small-coffee producers in Santa Elena, Honduras, access the specialty coffee market, which has grown in popularity in the United States since the early 2000s and generally pays farmers better than commodity prices.
Overall, the commodity price for arabica coffee has jumped more than 40 percent since before the pandemic, climbing even further last year and dropping slightly this year.
By the time beans are roasted and sold to cafes, they often cost $10 or more per pound, depending on the blend, Crabbe said. And even if commodity prices go down, customers are unlikely to see their bills drop.
“Retailers, once they increase the price, tend not to lower it because they know their margins are going to be squeezed,” said Judy Ganes, president of J Ganes Consulting, which works with food and agricultural industries.
Orellana-Powell likes to remind people that their morning mug is the end result of a long and arduous process. “People don’t treat [coffee] as a luxury item,” said Lowell Powell, her husband and co-founder. “And they should.”
***Read more of the story here for free:*** [***https://wapo.st/40zcz9h***](https://wapo.st/40zcz9h)