Coffee is a highly traded commodity and this is having an effect on the price of coffee in the Commodity Market causing it to rise as more people begin to invest.  It is however not just the commodity market that is causing the increase in coffee prices – there are a number of factors.  Poor crops due to the weather and coffee plant disease and pests have resulted in reduced harvests from all the major growing areas, Brazil, Columbia and Vietnam.

Starbucks anticipated the lower harvests and bought in bulk ready for 2011 – as a coffee specialist company Starbucks are hoping to keep their prices down and not have to inflate the 2011 prices. There is however an underpinning problem that will continue to affect the cost of coffee and that is the emerging markets of China and India and there growing love of fine coffee.  World coffee supplies may struggle to meet the demand in these regions and therefore other regions too.  The effects have as yet not showed reduced numbers of people drinking coffee especially speciality coffees.  We will certainly keep you posted and inform you of the changing coffee market.