Not sure whether to put this in Consumerwatch or here.
We generally buy coffee each week, and pay c.£2.89 for a jar of Nescafe Black Gold at Tescos. The price up, until yesterday, had been fairly consistent. This week however, the price had shot up to £3.55; a huge 66p increase.
Similar increases have occurred on Nescafe & other brands at Asda, with most same-sized jars now being around the £3.40-ish mark.
Can anyone explain the apparent increase in coffee prices, or is it only me who has noticed?
as the others have pointed out. Not many people know that coffee is the world's second largest traded commodity after oil in terms of the value of the market.
There are two main coffee trading markets - one in New York, which trades in Arabica futures on the Intercontinental exchange, and one in London, which trades in Robusta futures on Euronext. There are other markets in Singapore Commodity Exchange (Robusta), the Commodities & Futures Exchange in Brazil (Arabica) and the Tokyo Grain Exchange (Arabica and Robusta).
One of the things that can affect world coffee prices in a major way is a frost (or even the threat of one) in Brazil. One frost can affect coffee yields for succeeding years, and Brazil dominates world coffee production. If Brazilian coffee yields even look like being down the price of coffee will tend to rise worldwide.
You can't harvest beans from a new bush until it's at least three, and sometimes five years old, and it takes a whole coffee bush to give enough beans for a pound of ground coffee. Arabica bushes (my favourite) only produce beans every other year, so prices are obviously going to fluctuate a fair bit if there's a bad year.
Bought 4 jars of Nescafe from Asda's last week on special offer. 300G jars for £4.00. 200G jars for £4.60 And it is sometimes cheaper to buy two 200G jars instead of the one 300G jar. Confusing yes.But it tastes nice.
There were vessels moored up in the roads loaded to the gunnels with beans simply waiting for a market shift before being 'landed' This also happens to other commodities- shipping deliberately held off whilst waiting for a price shift- up of course.