A trifecta of forces is causing coffee prices to reach the highest they’ve been in nearly a decade. Supply chains disruptions, increased demand, and poor weather have all resulted in a costlier coffee bean.
Do you think it’s possible we’ll see a shift in the increase demand for tea as a substitute good to coffee if the price consumers pay does increase substantially within the upcoming months?
Now do iced tea! But for real, it's interesting to see everything affected by this pandemic and global supply chain issues. Some great supply/demand questions could be written on this post.
Some of what ended up happening, looking back now...
With some of the previously negotiated contracts, importers had problems with producers reneging on the deals.
As prices rose, producers were unwilling to supply at the previous low prices.
And when this happened with major producers like Colombia, it left quite a mess.
Because the supply curve shifted once again with producers only willing to supply at the higher price.
The Colombia situation:
https://www.reuters.com/world/americas/exclusive-major-coffee-buyers-face-losses-colombia-farmers-fail-deliver-2021-10-11/
Do you think it’s possible we’ll see a shift in the increase demand for tea as a substitute good to coffee if the price consumers pay does increase substantially within the upcoming months?
Now do iced tea! But for real, it's interesting to see everything affected by this pandemic and global supply chain issues. Some great supply/demand questions could be written on this post.