Tonight fears that the price heck of your morning cup of coffee will keep rising. - "yeah if it gets to $6.50, then it's just like that's too much."
今晚我担心你明早喝的咖啡会继续涨价。 - “是啊，如果到了6.5美元一杯，那就太贵了。”
"I am trying to budget more because I'm paying more in rent right now as well so, I want to keep getting coffee but it's super expensive."
More than half of Americans drink coffee on a daily basis and 80% of the coffee imported into the country is Arabica, the majority from Brazil.
Brazil is the pro number one producer of coffee in the world, that affects the entire coffee market, Brazil's coffee basically sets the price in the global coffee market.
And that market is facing challenges from extreme weather near the equator, making it more expensive for importers like Charlie and Jackie Newman from the world of coffee.
Climate is a huge factor on all crops especially coffee, the climate is changing, you know what's happening in Brazil right now? first they had a drought, now they have a frost.
Forecasters predict almost 18% less coffee could be available for experts out of Brazil next year versus last season and getting it into the U.S is also costing more.
The cost of shipping has quadrupled just to get coffee from central and South America into the United States.
Coffee prices are up 20% since july of last year, according to the Bureau of Labor Statistics, more than double overall inflation and with more complications brewing, distributors and coffee shops may have to keep charging more.
It's been a lot less impactful than I thought it would be, it will probably get worse as time goes on because we've just got the first price increase for from the drought, so I'm pretty sure it's going to get worse as the months go on.
Farmers are developing methods to combat volatile weather and stabilize the crops, but in many ways like any food that grows from the ground, the final say may be up to mother nature.
As long as climate change, causes crazy variations in weather, this will be a concern now and into the future.
Guad Venegas joins us now from Miami a town that runs on coffee, Guad, I know you've been talking to a lot of people in this industry and there's been a domino effect, when it comes to these high prices. What are those distributors telling you?
Tom, so they say that they're paying twice as much for the green coffee beans that are imported into the United States.
And they've made the decision to diminish their margins essentially their margins essentially make a little less money to be able to distribute their coffee at a better price to all the coffee shops.
So that eventually people are paying more, but they're not paying twice as much for that cup of coffee.
What they also tell me is that they expect the supply and demand to balance out in the future where the prices are not as expensive for them, and Americans and people all over the world can keep drinking that daily cup of coffee, Tom.