Breakfast bummer: price of coffee and orange juice on the rise
WATERBURY — Coffee and orange juice drinkers, listen up!
Unsettled weather in Brazil is creating a rise in the price of ingredients that are in your favorite breakfast drink meaning your morning sip could cost you more.
Dry weather across Brazil’s coffee belt is causing problems there. While too much rain in citrus areas and frost in the sugar-growing regions are reasons for production issues with orange juice.
Brazil is the worlds biggest producer and exporter of all three products, and according to Bloomberg, cost is at an all-time high.
Production of arabica and robusta beans are taking a hit. Arabica coffee, the variety of choice for Starbucks, reaching the costliest since early 2015.
Sugar and orange juice futures in New York are already trading at a four-year high.
Florida, the number two orange juice supplier, has been hit by a disease spreading bug which has devastated crops meaning a cost spike at the breakfast table.
According to the U.S. Department of Agriculture, global production of the beverage is already set to slump to the lowest in decades as consumption of the juice in the U.S. has dipped.
Experts warn that at some point the prices are going to hurt demand for sugar and coffee and they say the upside is limited.