Drink up on #internationalcoffeeday because the supply is limited!
Background: If you thought coffee had been particularly pricey this year, you're not imagining it. The price of coffee around the world has surged nearly 22% in 2021 alone to $3.65 a kilogram.
What happened: Brazil is the world's largest coffee producer, and accounts for around half of the world's supply. But severe droughts and severe frost have destroyed around 20% of Brazil's coffee plants. Whaaaat?!
What else: This, coupled with global supply chain issues (TY COVID), could cause a world. wide. coffee. shortage. And coffee growers are telling importers this shortage could last three years. YIKES.
💡When the price of raw materials increases, eventually, we as end consumers of the product will likely wear that cost.
💡Think about it: if manufacturers need to pay more money to access the raw material (coffee beans) - then they're going to jack up the price of that product to make up for it.
💡And this price-increase travels along the supply chain all the way to your local barista. Ultimately, it is us, the caffeinated folk who end up paying more for the product. So get ready to fork out a little extra for your morning cuppa.
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