Green Bean Coffee Price

Why is the price of your coffee going up?

The 1st graph is a snap shot of the Colombian green bean price. 

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The world “C” coffee futures price, as a commodity, has historically roughly tracked the Australian Dollar. That means that our coffee prices in Australian dollar terms have stayed fairly constant for many years. 

This has changed significantly since Dec 2010, in line with many other soft commodities such as wheat, chocolate, sugar etc.  

The world coffee price has out-performed the Australian Dollar in the period from December 1^st 2010 to February 18^th 2011 by about 40%.

The actual price increase in US dollars has been 100% in the last 12 months.

The Chart below is a comparison of the 3 year performance 2008 to 2011:- Australian Dollar versus I-Path Total Return Coffee Index (relates to ICE Coffee “C” futures). Click on the chart to enlarge! 

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At the end of the day, What does this mean?

Unfortunately it equates to a noticeable increase in both the wholesale and retail pricing in the short to long term…