Commodities
Cup of Coffee Costs to Stay High Even as Bean Prices Dip
- Labor, energy, and packaging costs on the rise as futures dip
- Roasters raise prices to protect margins, more pressure ahead
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Consumers are unlikely to see any relief in high coffee prices even as wholesale futures price have dipped because of elevated costs to produce and sell the morning brew, according to Rabobank International.
Arabica coffee futures have fallen sharply since rising to a multi-decade high last year, which usually preempts a drop in prices for the consumer. However, this time around high costs for labor, energy and packaging are taking a toll on company margins, keeping prices elevated.