Bradenton Coffee Market Update
Bradenton Coffee Market Update
Joe started his morning like any other. He began by grinding single-origin coffee beans roasted by Banyan Coffee Company in Bradenton, Florida. The aroma of the freshly ground beans percolated the air like fresh air after a good rain in the mountains. The electric kettle brought the water to boil and he started pouring water through the Bradenton coffee in the Chemex.
Next thing you know, the coffee bloom has risen up like a child on Christmas morning. After the water finished running through the funnel, it was like any other morning for Joe that starts with the best cup of coffee. However, this morning when drinking his coffee, Joe wondered if coffee will increase in value after hearing the news and what is going on in the world.
Many of us are like Joe and have a similar morning routine with coffee. Many people do not think about everything that affects the Bradenton coffee in your cup. Whether you make it at home, pick some up at your favorite Bradenton coffee shop or chain, or wait to arrive at the office to drink what is already there, it is safe to say we do not often give much thought to how it got in our cup. Drinking coffee is a developed habit that we have all come to appreciate for the flavor and energy it provides us.
However, there are several economic factors that influence the coffee you drink everyday.
If you have been following the news, you know the current state of the United States’ economy and how the markets are letting off steam. At the same time, our country is experiencing the highest levels of inflation we have in decades.
Commodities Are Increasing
On top of that, there is a lot going on in our world that contributes to the problems we are feeling in the markets. Not only is inflation at an all-time high, but so are many of the commodities that we use all the time. For example, common items like gas, groceries, housing, supplies, materials, and goods and services are all increasing in cost.
Even more, Bradenton’s single-origin coffee roaster’s favorite commodity of them all – coffee – is continuing to become even more expensive. Why is coffee continuing to increase in price while its value remains roughly the same?
Labor Shortage
There are many factors that lead to one of the most consumed beverages in the world increasing in price. For starters, there is a massive labor shortage throughout the world. Not only are we experiencing that in the United States, but other countries are feeling the weight of the labor shortage. With not enough people working, the demand for coffee becomes greater than the available product. In order to compensate for less coffee being sold due to the labor shortage, companies, farms, importers, and exporters must increase their prices. Also, competition amongst coffee distributors will increase as a result too.
Supply Chain
Another economic factor contributing to the increased price of coffee is the supply chain. A lot like the labor shortage, without the supply being able to meet the demand for the product, the value of the commodity will increase in price. That is because the same amount of people want to continue drinking coffee but throughout the world, it becomes increasingly more difficult to source and supply it. A great example of the supply chain feeling the weight of a supply chain squeeze is the used car market. Since car manufacturers could not get the computer chips they need to put in new cars, their supply decreased. As a result, the cost of used cars skyrocketed as that is all that could be sold. The supply of new cars became so low that the cost of used cars became more expensive than new ones since that is what is available.
War in Ukraine
The next factor that is affecting the overall market as well as the coffee market is the war in Ukraine. With the war going on the way it is, gas prices have soared to an all-time high. As the cost of energy increases, so does the cost to transport goods such as coffee from their location to their end destination. Exporters and importers now have to charge coffee roasters and coffee shops more money for the same amount of coffee. This happens because the coffee exporters and importers have to now pay more money to get the same amount of coffee from their sources because of the increase in energy costs.
Cycles
On top of inflation, the supply chain bottleneck, labor shortage, increased cost of energy, the ports where the coffee lands are all backed up. Without getting the coffee to the roasters and coffee shops, they are not able to sell their product. Alongside inflation, the cost of fertilizers for farmers have gone up, and now they have to charge more to the exporter, the exporter has to charge the importer more, the importer has to charge their clients more, and the same problem continues to go on.
On a home front perspective of the U.S. market, coffee shops are having a hard time hiring baristas, which contributes to wage increases, and then charging more for the coffee they are selling to compensate for having to pay employees more to attract and keep them working.
With that said, it is obvious that a lot is going on with the coffee industry. It is just one example of a market segment in the greater market feeling the weight of the economic factors impacting the way we live our lives.
Why do we tell you all of this? It is our belief at Banyan Coffee Company to always be informative, educational, provide the best Bradenton coffee, and help you know what you are getting when purchasing from us. Amongst the market squeeze, Banyan Coffee Company is working hard to keep costs low, and ensure you can experience the best single-origin coffee in Bradenton without any issues.
Why choose to buy your coffee from Banyan during these times?
- Competitive prices – we are proud to offer great pricing in an industry that continues to increase their prices, affecting the end consumer (Joe this morning drinking his coffee)
- We will work hard to continue to keep our costs where they currently are
- We always will keep working with small farmers and importers to support their livelihoods in less than to do socioeconomic communities outside of the United States
- We have free shipping on orders over $25, which means if you buy two bags of coffee, you will have the best single-origin Bradenton coffee every morning for weeks at time
- Our coffee has tremendous value: You can pick up our coffees at a local chain for a reasonable price or $14 for one bag of our beans which will make roughly 20 – 25 cups of coffee.
No matter what is going on in our world. One thing remains certain… Coffee is a drink that brings family and friends together and is something that can be shared and bring joy to our life. No matter the state of the economy or coffee market, Banyan will continue delivering the highest quality, single-origin Bradenton coffee for you.
