Coffee prices spike amid Trump tariff threats. Is your cup of joe at risk?
Surging prices for coffee on global markets are coinciding with a weak Canadian dollar, putting a “pinch” on cafés and retailers that could end up hiking the cost of your cup of joe.
Adam Pesce, president of Ontario-based Reunion Coffee Roasters, tells Global News that the uncertainty tied to United States President Donald Trump’s tariff threats potentially coming to pass as early as Saturday feels like the latest domino set to topple onto his business.
“There’s not a lot of great news,” he says. “And of course that just trickles on down to the end consumer eventually just having to pay more for their coffee.”
Pesce warned Global News of alooming spike in coffee futures prices in September, when forecasts for a smaller crop coming from bean-growing nations such as Brazil and Vietnam were set to put a crunch on availability.
Since that time, Arabica futures have surged nearly 50 per cent on the Intercontinental Exchange, rising to above US$3.75 per pound as of Thursday. That’s nearly double the price year-over-year, with Reuters pointing to supply concerns out of Brazil as one factor contributing to the latest surge.
Statistics Canada data shows retail prices for a bag of coffee have fluctuated but largely risen over the past year, from an annual low of $6.16 per 340 grams last January to a record high of $7.09 for the same amount in August.
Coffee shops and processors source their beans based on long-term contracts set in the futures market, Pesce explains, where businesses like Reunion can try to mitigate the worst of the volatility. That could “slow roll” the impact for consumers, he says.
But the current market conditions are not sustainable for businesses like his, Pesce warns, and cost hikes could continue to flow
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