Coffee costs are rising due to extreme weather in South America

SOUTH BEND, Ind. -- Have you noticed a higher price tag on your morning cup of joe? Well, you're not alone. Coffee prices have been on the rise, with coffee grounds being the most expensive in the last decade.

Even since just last year, coffee drinkers have been feeling the pain with costs rising nearly 40% from July 2021 to July 2022. This price jump has not only impacted people making coffee at home, but it has also put a lot of pressure on local coffee roasters.

Inflation within the coffee industry has hit small business owners hard, with the cost of coffee beans reaching staggering heights. Many have been forced to raise their prices or operate with a lower supply in order to keep up with these rising costs.

Kodachrome Coffee in downtown South Bend is just one business facing these new challenges. Shaun Maeyens, the owner of Kodachrome Coffee, says that the local café has managed to avoid raising the cost of their product yet, but has had to find ways to account for the price jump, such as shortening the café's hours and switching up brewing methods.

Although they have managed to keep costs consistent, Kodachrome Coffee, among other local coffee shops, will likely have to raise their prices at some point. "You don't want to just pass all your prices on to your customer base, you also can't absorb them all," Shaun commented. "You're gonna see a lot of cafes raising their prices, I don't see how they can't."

Much like many other industries experiencing inflation, this price jump in the cost of coffee can be traced back to extreme weather conditions and climate change. Brazil, the global leader in coffee production, is one of many regions in South America that has been experiencing extreme drought and frost, both of which are hurting crops including coffee beans. Extreme weather has led to poor harvests, cutting down the coffee supply.

Maeyens asks customers to be mindful of small businesses during this tough time. Supply chain issues, staffing shortages, and general economic inflation have all placed a heavy weight on the shoulders of small business owners. Make sure to pack your patience when heading to your local cafe, as coffee supply is expected to stay low for a while, and local roasters will continue to feel the sting of inflation.