Coffee connoisseurs, get ready to stretch your wallets. The cost of coffee beans is at its highest in three decades, and they're expected to continue to rise.
Staggering prices are due in part to falling supply. Unusual rainfall and temperatures, a potential result of climate change, have caused coffee production to be down in areas like Colombia. Consumers are already seeing the effects. Kraft has announced plans to up the cost of Maxwell House by 20 percent, and Starbucks raised the price of packaged coffee by 12 percent last month.
Meanwhile, demand in emerging markets such as India and China continues to grow. It's expected that Arabica coffee consumption in China will increase by 15 percent this year, and Starbucks — which today announced plans to develop a wider range of ready-made food and beverages, following the success of its Via instant coffee — has set a goal to increase stores in mainland China from 450 to 1,500 in the next four years.
Doesn't sound like the price of coffee has a promising future. Now's the time to stock up!