Coffee prices in Canada rise next month
World prices hit 13-year high on supply uncertainty
A leading coffee producer in Canada confirms it's looking at raising prices — already at a 13-year high — another nine to 12 per cent next month.
World coffee prices are being pushed by uncertainty over the short-term supply, according to the International Coffee Organization. Adverse weather conditions have affected production in Vietnam and some Central American countries.
The organization reports that Aribica, a higher quality coffee bean, is increasing in price substantially faster than Robusta beans.
The price of coffee futures on the world market has grown about 43 per cent over the summer.
"The current behaviour of prices reflects uncertainties concerning short-term coffee supplies," Nestor Osorio, executive director of the International Coffee Organization said in a release.
"With all these supply fears, investors are jumping on the money train — even mom and pop investors want to jump on because of how evident the [production] issues have been over the last couple of months," he said.
But for Canadian consumers, a cup from Tim Hortons or Starbucks won't change for the time being. Both companies have said they will absorb the increase.