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Looking for Answers to Rising Coffee Prices

A cup of coffee at the M.E. Swing Coffee Company shop in Washington DC
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A cup of coffee at the M.E. Swing Coffee Company shop in Washington DC

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This is the VOA Special English Economics Report.

Food prices are at their highest level since the United Nations Food and Agriculture Organization began keeping records in nineteen ninety. The causes include bad weather and growing demand. Some experts also blame the use of food crops to make fuel.

But higher food prices are not always the result of limited supplies.

Coffee prices have jumped almost fifty percent in six months. Prices have reached a thirteen-year high. Yet growers expect their current crop to be almost ten percent bigger than the last one.

JM Smucker is an American company known for its jellies and fruit spreads. But Smucker also owns Folgers, America’s top-selling packaged coffee. And it owns Dunkin’ Donuts, which sells coffee to wash down the doughnuts at its stores.

On Tuesday, Smucker said it would raise the prices of its coffee products by an average of ten percent. It said the increase is driven by the higher prices for coffee beans.

Experts say coffee prices are rising mainly because people are willing to pay more. Coffee sellers like Mark Warmuth say tastes are changing and more people want a good cup of coffee.

MARK WARMUTH: "There’s no right or wrong answer with regard to ‘What’s a good cup of coffee?’ A lot of it has to do with personal preference or taste."

Mark Warmuth owns the M.E. Swing Coffee Company in Alexandria, Virginia, near Washington. He says big coffee sellers like Starbucks help his business by building a base of customers who want something better.

MARK WARMUTH: “They’re seeking something that would be better than what they can buy at Starbucks. They’re seeking out smaller, boutique, artisan, craft coffee roasters, which I consider us to be, a boutique coffee roasting company. What we can do is source better quality beans and supply them at a fresher level because we’re smaller and we can cater to the smaller metro area. That helps us compete with bigger companies.”

Yet Mr. Warmuth can thank those bigger companies like Starbucks for spreading the idea of coffee as an affordable luxury. The thinking goes that during hard times, people might not go on a trip but they might be willing to pay extra for good coffee.

The company supplies restaurants and other businesses, but also has a store in Washington near the White House.  Customers pay thirteen dollars for less than half a kilogram of beans -- about double the price of other brands.

Greater demand for high-quality coffee has helped drive coffee prices higher. That includes greater demand among Brazilians. Brazil is the world's largest exporter of coffee.

People in India are also drinking more coffee. Starbucks just announced plans to enter that market in a deal with India's Tata Coffee company.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

Comments (93)

11-02-2011 Sin Sivuhta (Cambodia)

Thanks for VOA , to showing the economic in the world, exspecially for coffee.

11-02-2011 omid (iran)

I love the Starbucks coffee, but we dont have any Starbucks coffee shop here in iran due to our stupid political elites.

11-02-2011 guo chun lei (chian)

I do not worry about it ,because I drink tea everyday.

11-02-2011 bretta (USA)

People are panicked because coffee is priced at a 13-year high? Or, in other words: because we're paying the same price we did in 1997? By comparison, this is like panicking over gas reaching $1.30 a gallon. What am I missing?

11-02-2011 (china)

thank you VOA

11-02-2011 bright (China)

I think the bad weather may be the main reason for the rising price.Not only the coffee price,but other product price has risen.The super supplier coffee company should improve the service and quality to meet the customers.

11-02-2011 Jean

I'm afraid that Starbucks will raise the prices of its coffee products, too.

11-02-2011 erdil (turkey)

Yes ı agree with you.. Coffee price is rising. But there are a lot of people who is suffer form hunger. Furthermore more of all is child. What a wonderfull world. ::((

11-02-2011 Thanh (Vietnam)

The causes of rising coffee prices include bad weather. This gives us a question "Why does bad weather happen constantly?" If we do not take action right now, not only coffee prices but also prices of many goods will rise dramatically. That is very dangerous for the poor to exist.

11-02-2011 Ali (U.S)

Drinking coffee is my favorite thing in my day. I drink coffee everyday and I cannot start my day without drinking coffee. Sometimes I drink three cops of coffee,so what I did I bought coffee maker to drink coffee as much as I want because the coffee of Starbucks is expensive.

11-02-2011 Erina (Japan)

It's interesting to think about the coffee prices. I hope the prices would come down.

11-02-2011 Julis (Korea)

I think nowadays, coffee is so expensive worst than before. I hope prize would be low.

11-02-2011 Andrey (Russia)

In Russia likes coffee too. But not all to know real taste coffee. And prefer to buy low-quality sorts of coffee-it is cheaper and it is sad. Thank for your report, we can compare and possibly choose the better.

11-02-2011 Autumn Leaf (Vietnam)

Coffee now becomes an essential need for many people in daily life. They can skip their breakfasts but cannot forget a cup a hot coffee every morning before starting to work. A lot of cafeterias are growing up to serve the need of people. Many coffee companies become famous and their coffee brands are popular worldwide.

11-02-2011 Autumn Leaf (Vietnam)

When I have free time, I love to sit in a graden-cafeteria where it has a nice and fresh atmosphere, to listen to music, talk to some friends and enjoy each gulp of hot milk coffee. That is also a way to help me relax and get out of stress after a hard-working time.

11-02-2011 Yusuke (Japan)

I like coffee very much and drink three or four cups of coffee a day.I thougt that the rising of coffee prices was caused by the result of limited supplies.But I undestand the real cause of it.Thank you for VOA.

11-02-2011 Naran (Mongolia)

Drinking coffee is very nice. I like to drink black coffee without sugar. In my country it's increasing a tendency that more and more people like to drink a coffee. Thank you very much VOA. I always learn new things from your programs.

11-02-2011 pitter arruda (brazil)

Hi Voa, In my country the people can see anywhere the rise of food prices. The causes include bad wether this year.

11-02-2011 nguyen thi hong van (Viet nam)

coffee price in my country also increases in this year. It reaches around 20 percent.beceause more and more people needs even women and students.In adittion famers have to invest much into coffee tree ,drough and storm yearly.finally people pay attention coffee quality.

11-02-2011 Anddy Steven (Indonesia)

Well, I totally agree that the high price of coffee is due to the fact that consumers want to pay more if they can taste better coffee. That is what i would do as one of the coffee lovers. In my country, Indonesia, we have not suffer from the coffee high price. But we probably have the most expensive coffee in the world called coffee Luwak. Try to taste it and you will taste a great coffee in deed.

11-02-2011 chen (tw)

Coffee is very popular.if Coffee company can make good coffee,I can pay more money,

11-02-2011 Winsor

Although Brazil is world's largest exporter of coffee, they remain in a down point economically. People are willing to pay high prices for coffee beans, that includes greatest demand among Brazilians. That's just a small percentage to boost up their economy.

11-02-2011 Joruji (Japan)

It's interesting that people are willing to pay more for a good cup of coffee. I like drinking coffee. Good coffee is expensive, but I think it's worth the price because good coffee has a good taste and a wonderful aroma. Do you know October 1st is the official Coffee Day in Japan?

11-02-2011 Junko (JAPAN)

I'm really concerned about how much coffee farmers can get more by the increase in price of coffee. Most of Them have been struggling with poverty, so I hope it'll enable farmers to live on their own income.

11-02-2011 Anthony (USA)

Commodity prices are up across the board because Hedge Funds and Speculators classified them as an Asset Class some three years ago and thu justified holding massive position in them. In Coffee they currently own some 35.00% of the Open Interest. These Funds are Long Only and have massively over-inflated all the underlying markets. They are parasites and unfortunately they harm the poor most of all.

11-02-2011 Oscar Wills (Colombia)

Colombia is a leading country recognized for cultivating coffee of high quality. The climate and the topography of the Land of the Coffee, the history, the tradition and the quality of the Colombian Coffee, the different programs of guarantee of origin, the 100% Colombian Coffee . Thank you

11-02-2011 Antonio (Brazil)

Very well.

11-02-2011 Peter (China)

In US I usually drank coffee. Now I seldom drink coffee in China.

11-02-2011 Aliyu Kinkilo Shabu (Nasarawa, Nigeria)

Though, coffee is very important and as a source of protein, UN should put more effort in improving its productiom , quality and distribution through out the world. But rising its price will detrimentally affect the masses

11-02-2011 sara (somalia)

Thank you for the report

11-02-2011 Bakhtiar (Iraq)

My favorite drink is coffee with milk with no sugar, when i drink a nice cup of coffee it gives me better self-esteem and comfortable feeling, it moves way a boredom feeling during office work time.

11-02-2011 wen (china)

Many people have their habits that they like to drink coffee and coffee prices go up quickly. So they need to know “why”. in fact the prices are rising for many kinds of food. The reason is from many ways. Thank you. I like VOA special English, it will be improve my English skills.

11-02-2011 Ceci (Mexico)

I only drink coffe done in my house ,I dont waste my money in stores

11-02-2011 alaaldin (jordan)

I think that all prices became highest for more reasons: - bad weather - wrong planning - most people buys the product when the price is increases but i dont know why??? - the suppliers are very bad because they are controls on the price - thank you very much V O A

11-02-2011 Maki (Japan)

We have been on the same path as yours. As we love coffee along with fashionable coffee shops, it's been an everyday drink. Also I'm drinking coffee now, too. I've heard news here also that major domestic coffee companies are due to raise their prices. Canned coffee is very popular in Japan. I'm concerned those beverage cans might become expensive, even though they're an everyday luxury for me.

11-02-2011

Coffee is the life of Jordanian. We are concerned about the prices of coffee, because Jordan do not produce coffee and all the coffee are imported from other country.

11-02-2011 Ahmed Abdi (Somaliland)

Thanks VOA I wasand am a good listener since 1984 before the Somalilaa Civil war breakage and i didnot listen from 1990to the 2007 but now i listen mostly. coffee has been tested in somaliland for growing. it has been tested into an highland and moiuntain areas as its first time. I like it it is imported mostly to Somaliland. and the traditional type of coffee from Ethiopia is drun k so much here in the capital city of Somaliland

11-02-2011 Kei-ichi (Japan)

Now coffee became one of the real luxury food and drinking items. Some of them are changing to buy Lipton package, and I will hesitate to say "I'll buy a cup of coffee for you."

12-02-2011 TOMOKO (Japan)

I don't think coffee prace has risen here in Japan. Coffee price at famous coffee shop like Sturbacks is the same as usual... I'm worried if coffee price will rise at these coffee shops,but I don't have to worry about it so far.

12-02-2011 Alice (TAIWAN)

VOA Special English is really a good way to learn English. Furthermore, I also learn a lot of information about international news. Thank you, VOA. This Coffee price article is interesting. But I worry the prices of all kinds of food (not only coffee) would be also kept increasing. The high inflation will affect our daily life a lot.

12-02-2011 doma (korea)

thanks for voa, especially about economic stack.

12-02-2011 Dung (Viet Nam)

Increasing Price of Coffee is a good news for farmer in highland of VietNam, they work hard to bring the coffee to many country in the world but they get litle for many years.

12-02-2011 Louis-1 (China)

having west food and drink is more and more popular for chinese people. today, the majority of the customers have accepted fastfood restaurant such as McDonald's and KFC.drinking coffee is not the traditional habit of the customers in china. but it has huge markets, specially among young people.

12-02-2011 Louis-2 (China)

in big city, many people like to drink coffee at Starbuck coffee corner shop, although the price of a cup of Starbuck's coffee is more expensive than fastfood restaurants.they believe that drinking Starbuck's coffee is representative of popular culture.

12-02-2011 Louis-2 (China)

in big city, many people like to drink coffee at Starbuck coffee corner shop, although the price of a cup of Starbuck's coffee is more expensive than fastfood restaurants.they believe that drinking Starbuck's coffee is representative of popular culture.

12-02-2011 Shin (south korea)

I love coffee

12-02-2011 yiliang (taiwan)

A good cup of coffee should be combined the quality coffee beans, advanced coffee maker and skillful service I suppose.

12-02-2011 Cough Fee (Land of the Free)

Maxwell regular just went 1.80 USD per can this week at Walmart, locally. That's a 24% increase !! %^&$!!

12-02-2011 Sakda Butsuwan (Thailand)

Coffee help me to fight sleeping but it effect to me when I do no drink them.in the past ,my friend like to drink coffee very much until she can not stop to drink it.Especially,it make she crazy for controlling to sleep.Therefore,If you must do hard work,you will not go to bed late.

12-02-2011 oscar (el salvador)

here in my country, we know ther price of coffe is growing, but our farmers are think in change the coffe trees and diversify, that´s to bad to our econimy if this grain is a good deal

12-02-2011 Saeed Lamloum (Qena,Dandara , Egypt)

In Egypt most people don't worry about prices of coffee but they worry about other things like wheat

13-02-2011 Nautilus (Vietnam)

Coffee prices are going up while the life of farmer is suffering. I think Governments have to do something to help our farmers including confronting to bad weather and building right policies.

13-02-2011 GULNAR (AZERBAIJAN)

In my country, coffee is not a popular drink as much as tea.We are a nation of tea drinkers and iam an addict.

13-02-2011 Hideya (Japan)

Thanks Mario and Steve !! I could get very interesting information from you. Because I had no ideas why the coffee prices are rising. To matters worse,I didn't know the fact the coffee prices are rising. I hope it will come the time when we could drink good coffee by cheap price. Thank you for all.

13-02-2011 jenny (thailand)

Coffee at doitung has famous in thailand.it good taste if someone come to thailand welcaom to doitung cafe

13-02-2011 mina (Japan)

In Japan, I think there are many people who start off with drink a cup of coffee in every morning, so coffee is one of the most popular drink. Having said that, to be honest, I also think there are few people who concerend about its price in Japan.

13-02-2011 BATTER (china)

Hello,voa!I don't like to drink coffee very often,but I like to drink it with my friends sometimes in the teahouse,We often drink tea at home .I don't know why do so many people like to drink coffee today.and what can do coffee for our health

13-02-2011 khue (Viet Nam)

I like drinking coffee, after hearing thid news I know more about the price of coffee that I dink every day. I only know Stabuck and Tata, this is the firt time I see the name JM Smucker.

13-02-2011 Alex ma (China)

Thank you for VOA English news,I drink packaged coffee sometimes,But I think the most of Chinese peoples like to drink tea,Because tea is our traditional cultural.Although the west food is more and more popular in China,I believe that tea is not replaced by coffee forever.So the price of coffee is high or low could not influence China.

13-02-2011 olleh (South Korea)

when it comes to coffee, coffee mix is crazy demand. that means instant coffee, sugar and cream powder in 2g pack.

13-02-2011 naif (saudi arabia)

I don't like coffee so much but i like tea more than coffee

14-02-2011 junbum (Korea)

Coffee is my most favorite food(?) and it's very pleasure to enjoy a coffee with my colleague and familly. But whenever I drink a cup of coffee, I need smoking too. In order to quit smoking, I have to quit drinkg coffee as well. It will kill me double times. ㅠㅠ.

14-02-2011 JBG (South Korea)

I'm poor English. So I don't understad" Prices have reached a thirteen-year high" That means " Price record high Since 1998" ^^;

14-02-2011 Sophia (Korea)

I think lots of things uprising. That's not problem only coffee.

14-02-2011 Orchild (CHINA)

we here in china people drink tea and it has nothing to do about the coffee.it,s just very wonderful ~\(≧▽≦)/~

14-02-2011 Souchan (Japan)

I wonder why many people are not worried about the economic situation of the coffee farmers around the world. Genearlly speaking, they are said to be badly off even if the demand of coffee has been increasing. Who is exploiting the profit of this boom? Tell me the fact about this situation.

14-02-2011 yuuzi (Japan)

I think that Rising Coffee Prices has been caused by not only more people buying better coffee, but also becoming more richer, especially, in the developing countries.

14-02-2011 Tai lu jie (china)

sunshine

14-02-2011 Meiwan (Kurdistan-Iraq)

thanks VOA ... Actually in Kurdistan, there's a few person who drinks coffee if you compare with other country.. Generally they drink tea as much as everyday.. but at the same time, I don't hate Coffee....

14-02-2011 Burhan udin (Afghanistan)

I love love COFFE..... at 10 am

14-02-2011 james (taiwan)

Thank you for the VOA news. In the news,I learn that the food price is giing to rise. What is the reason? I think that it's the change of weather. When the weather change,the full environment would be changeed and it influenced the growing of plants. In the future,people may not have nothing to eat. We need to think the food problem.

14-02-2011 DK (Canada)

A few months ago I bought a large can of Maxwell House coffee for $5.50 CDN and now its $10.97 CDN. That's a 50% increase in a few months. I'm not drinking it anymore and I feel alot better without it!

14-02-2011 Shin (South Korea)

Coffee price has gone up too highly. Considering the normal foods price rising, it's abnormal. I think coffee is 'articles deluxe' so it encorages the coffee price to go up. However, consumers are willing to pay more for coffee, and then suppliers don't want to keep low price. They want to earn money from them instead of providing luxury coffee.

14-02-2011 Nori (Japan)

Concerning the taste of coffee, using fresh coffee beans is the most important thing, I think. Good taste is not equal to high price, that is also similar to other food and drinks. But a lot of people concern the luxury image, that may measured the prices.

14-02-2011 ROBERT KIM (KOREA)

GOOD NEWS

15-02-2011 Bk (Thailand)

In Thailand Coffee prices also rose sharply,but it harly affected on coffee drinker who willing to pay more for high quality coffee.

15-02-2011 Enilton Neymakes (Brazil)

For who that said Brazil remain in a down point economically: The Brazilian economy is the world's eighth largest economy by nominal GDP in front of countries like Canada, Russia, India and Spain. Soon we'll pass you China...

15-02-2011 Perfi Li (unversity of macau)

Coffee is a luxury thing but a basis need for our daily life,so the rising of its price may not affect basic life acutely. In another hand , if somebody want to go for something ,he should accept evertyhing regarding of it ,including its price. So , the fact of Coffee price's rising is not a big deal.

15-02-2011 ike (japan)

thanks for VOA i drink coffee everyday. so,i hope the price come down. Now,in japan,a cup of coffee can buy ¥200~300.

15-02-2011 alone leaf (Vietnam)

Oh, for a long time i haven't read articles at VOA, and today, i'm really interested in this article. It's not dificult to listen and understand because The structures were used in this are quite easy to a beginner as me. Thanks a lot for this useful.

16-02-2011 Paula (Colombia)

The high price of coffee seems to be due to bad weather in parts of Colombia and Brazil ... And I do not think then how will rise more if the winter continues. Well, still does not stop taking their good cup of caffe. Everybody say that the coffee can be a natural product that can help prevent some diseases and help to keep in shape memory and increase mental and physical performance.

16-02-2011 Sheila (China)

I like Coffee and drink it everyday. But in China the coffee sames no price up now. I alwys like search the coffee with yellow lable in supermarket means discount.

16-02-2011 Kuo Feng (Taiwan)

We gotta make more money BTW~

16-02-2011 Rachel (korea)

It's a good news!

16-02-2011 kashifumer (pakistan)

coffee prices are getting very high because of bad weather and high demand. recently the research has been done on women and men to find out. who get sluggish to drink coffee.and the result is very startling.men get sluggish to drink coffee and in the case of women it is the other way round.women get active and agile.starbucks is new on me.it seems very successful in Europe.it should also open branches to other part of the world.

16-02-2011 Coffee Cupper (Colombia)

Coffee´s price is rising not only because of bad weather, insects and fungi attacks must be considered too.. We consider this year would be more difficult for coffee crop in Colombia. The ammount of coffee beans probably continue falling down and prices going up.

16-02-2011 binh thanh (Viet Nam)

this info is interesting

16-02-2011 ANN Hoeun (Cambodia)

I like to drink coffee so much. This article said people who live in America spend about 30USD dollars for a good quality coffee less than half a kilogram of beans. It's a very high price if we compare to my country. Thanks VOA special English that always bring a knowledge not only English language but also general knowledge.

16-02-2011

i like good coffe.fortunately i am not addicted to it.i will cut my coffee times in oreder to save cost if the price of coffee becomes too high.

16-02-2011 Tanet Sin (Thailand)

- I think we should decrease new born baby. It will help demand everything slow.

16-02-2011 Hien (Vietnam)

My family has a farm of coffee trees. Although the price of coffee increasing is apparently a good new, what we earn after harvesting is not as much as we expected. Bad weather, limited water in dry seasons, increasing price of labors and harmful insects, such these things make planting harder than ever before

17-02-2011 Hot mit (VIET NAM)

I don't like coffe very much, because coffee bitter and make black my teeth. But the price coffe increasing make me serious because my father have to pay more for cups his coffee.

17-02-2011 Afiq (Indonesia)

It prove that the weather condition can influence the supply of food crops. The weather condition affected by CO2 density on the air, which every year is increases. The escalation of CO2 density make global warming which make a bad weather. We should decrease the CO2 on the atmosphere by using renewable energy and conduct the reforestation. Go Green!

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