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Expert explains why coffee prices are rising again – Pittsburgh, Pennsylvania

Pittsburgh, Pennsylvania 2021-07-18 05:20:00 –

A cup of coffee is the number of people who start the day. Prices rose during the pandemic, but could rise again. “In the gas world, you and I would call this price cut,” said Tracy Allen, who has been in the coffee business since the 1980s. The producer is Brazil, which is drought. But that’s not the only thing that pushes prices up, Allen said. Due to the increased number of shipping containers and coffee beans in foreign docks, shipping prices here have risen significantly. Allen said he wouldn’t be surprised to see the same coffee selling for $ 13 to $ 14 per pound if he paid $ 10 per pound for coffee at a grocery store. He is also looking for big sellers such as Starbucks and Dunkin. The bigger question is, will prices go down when shipments return to normal? ” The roaster is back and will cut the price when the price goes up, right? “So, do you think this price increase is permanent?” Said sister station KMBC, “it’s not temporary. I wish I knew it.”

A cup of coffee is the number of people who start the day. Prices rose during the pandemic, but could rise again.

“In the gas world, you and I would call this price cut gouging,” said Tracy Allen, who has been in the coffee business since the 1980s.

Allen runs a company called Brewed Behavior, which helps developing countries grow and sell coffee.

Brazil is the world’s largest coffee-producing country and has been hit by drought. But Allen said it wasn’t the only thing pushing prices up.

“COVID has caused so much downtime, no one is working, nothing is working, and now everyone is rejuvenated, so there is a shortage of shipping containers.” Allen said.

Due to the shortage of shipping containers and coffee beans in foreign docks, shipping prices here have risen significantly.

“So what I now get a container from Sumatra is usually $ 1,000 to $ 1,500 to get it to the United States, but now it’s close to $ 6,000,” Allen said. ..

If you pay $ 10 per pound of coffee at a grocery store, don’t be surprised to see the same coffee selling for $ 13 to $ 14 per pound. He also said he was looking for big sellers like Starbucks and Dunkin to raise prices.

The bigger question is, will prices go down once shipments return to normal?

“And the real question is how many of those roasters will come back and lower prices when they go up,” Allen said.

“So do you think this price increase is permanent?” Asked sister station KMBC.

“It’s not temporary. I wish I knew it,” Allen said.

Expert explains why coffee prices are rising again Source link Expert explains why coffee prices are rising again

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