This week, Smuckers, the makers of Folgers and Dunkin Donuts retail coffee announced an 11% increase in the cost of their coffee. This comes on top of a 10% increase in February, a 9% increase in August of last year and a 4% increase in May of last year.
If you apply all of the increases announced by Smuckers, the wholesale cost of coffee has increased by slightly more than 38% from May of last year. This price increase is what Smuckers charges to the retail stores that sell the coffee. The actual price increase to consumers may be slightly more or less than this, but we know coffee prices are dramatically higher than last year.
There is some speculation that commodity investors and speculators have caused most of the increase, however, as previously mentioned in this blog regarding other commodity increases, the world is rapidly reaching the point where food demand is outpacing food supply and if this keeps up, we will continue to have rapid price increases like in coffee.