I guess my question wasn’t why prices went from $3 to $13 a kilo, my question was why doesn’t coffee (and especially roasted coffee beans) cost 4x as much?
Though as you’ve hinted, it might be that people had supply contracts so haven’t paid more until the contracts started to run out and now they have to sign new contracts at a much higher cost.
Oh right, yeah I suspect that’s it, in theory futures should cost in the likelihood of more droughts / floods so this could be a one off spike factoring in new (not at all new) information about climate risks ahead of a constant year on year rise in the future until coffee can’t grow anywhere (at least not coffee that tastes good).
I guess my question wasn’t why prices went from $3 to $13 a kilo, my question was why doesn’t coffee (and especially roasted coffee beans) cost 4x as much?
Though as you’ve hinted, it might be that people had supply contracts so haven’t paid more until the contracts started to run out and now they have to sign new contracts at a much higher cost.
Oh right, yeah I suspect that’s it, in theory futures should cost in the likelihood of more droughts / floods so this could be a one off spike factoring in new (not at all new) information about climate risks ahead of a constant year on year rise in the future until coffee can’t grow anywhere (at least not coffee that tastes good).