By Dr. Bruce Smith ——Bio and Archives--December 1, 2024

Cover Story | CFP Comments | Reader Friendly | Subscribe | Email Us

This is about coffee, so I know I have everyone’s attention now.

For several weeks I’ve been hearing about coming spikes in coffee prices. There are a couple of reasons, but mostly it’s partial crop failures in a few areas. When the word goes out that there is a supply problem, other producers will often go ahead and raise prices because they know people expect it. It’s a kind of hedging the bet that demand will remain strong.

Prices are a signal to producers and consumers. When the price goes up producers will consider increasing production if it looks like prices will stay high. Likewise, if wholesale prices go down, it’s an indication that they may consider reducing output because profit margins may be affected. When prices go up, consumers may lay in extra supplies to get them through and they may consider other products, too. When prices go down, consumers enjoy plenty of the product and perhaps cut back on other products which have become less attractive by comparison.

Smart consumers watch price trends on products they use and act accordingly. You are still with me, dear reader, so I know that you are one of these smart consumers.

I went to the local supermarket just a bit ago. I’m a tea drinker, but my wife is a coffee drinker. Every time I go to the supermarket I check things that she likes........

© Canada Free Press