Ep 80: Why Plummeting Coffee Prices Could Lead to a More Expensive Cup of Joe Down the Road

Ep 80: Why Plummeting Coffee Prices Could Lead to a More Expensive Cup of Joe Down the Road


On this week’s podcast, we are joined once again by Lee Safar, Chief Ship Steerer of Elixir Specialty Coffee this time to talk the sharp drop of coffee prices – what it means today and for the coming 12-24 months.




Because of the current bumper coffee harvest, coffee prices are currently well below the cost of production. That may seem like a great thing for coffee drinkers and the companies behind them today, but with farmers swapping out coffee trees for other crops it will likely mean significantly higher coffee prices down the road when the current supply-demand dynamics don’t just normalize but over shoot in the other direction. And then as Lee explains there is China and its rapidly increasing coffee consumption. While companies love to target China to drive their businesses, what happens when that demand exacerbates a pending global coffee shortage? You guessed it … prices always find and equilibrium, and this one could hurt coffee drinkers in the wallet down the road.

Get a cup of coffee while you can, being one of the 500 billion cups consumed annually, and listen to what’s likely ahead for you and the second most sought after commodity on the plant behind oil.

Have a topic we should tackle on the podcast, email me at cversace@tematicaresearch.com

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About the Author

Lenore Hawkins & Chris Versace
Lenore Hawkins serves as the Chief Macro Strategist for Tematica Research. With over 20 years of experience in finance, strategic planning, risk management, asset valuation and operations optimization, her focus is primarily on macroeconomic influences and identification of those long-term themes that create investing headwinds or tailwinds. Chris Versace is Tematica's Chief Investment Officer and editor of Tematica Investing newsletter. All of that capitalizes on his near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks.

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