Japan loves coffee and there are thousands of convenient locations all over Japan offering coffee including in convenience stores where coffee can be purchased before you dispense your ¥100 and ¥150 cups of coffee. Japan is also experiencing a coffee boom but that might get seriously crimped as word was just reports that coffee prices have jumped 20 percent. So if you enjoy ¥100 and ¥150 cups of some pretty good tasting coffee, be prepared to pay between ¥150 and ¥200 for the same size coffee in the months ahead. The reason for the 20 percent increase in coffee prices? It is due to “unfavourable weather in Brazil – varying from droughts to heavy rainfall and frosts – has driven up the price of coffee.”
Rude awakening as price of coffee and orange juice shoots up 20%
Drought in main growing areas in Brazil and a tree-killing bug have caused a spike in the price of breakfast favourites
by Sarah Butler
September 30, 2016
Savour your morning juice and coffee this weekend, because the price of your favourite breakfast drinks may be on the way up.
Unfavourable weather in Brazil – varying from droughts to heavy rainfall and frosts – has driven up the price of coffee, sugar and orange juice around the world by more than 20% in the past few months.
The London traded November futures contract on robusta beans, the type mostly used to make instant coffee, has risen by a third since June to $2,027 (£1,561) a tonne on the ICE exchange after the main growing areas of Espirito Santo and Bahia were hit by drought, leaving farmers with only half their potential crop.
The recent rise in price was also driven by concerns about next year’s crop. With reservoirs dry or nearly empty in the regions, farmers have been reliant on annual rains to provide the moisture needed to kickstart coffee plants’ flowering season, and there has been precious little precipitation.
The stories you need to read, in one handy email
“There has been rain but it’s not enough to repair the damage,” said Carlos Mera, a commodities analyst at Rabobank.
Brazil is the world’s biggest producer of high quality arabica coffee and the second largest grower of robusta beans. More than a quarter of coffee imported to the UK comes from Brazil.
The country also produces 80% of the oranges traded on worldwide markets, more than half of which head to Europe, and exports nearly three times more sugar than any other country.
The price of orange juice concentrate has risen 21% since June to more than $2 a lb on the New York futures market, a level described as “astronomically high” by Andres Padilla, a senior commodities analyst at Rabobank based in Brazil. Padilla says prices have not been close to this level since 2006.
Please go the theguardian to read the entire article.