MARYVILLE, Tenn. (WVLT) A drought in Brazil is likely going to set the stage for an increase in the price of coffee beans, and your favorite cup of joe.
The coffee roasting pros at Vienna Coffee House in Maryville will typically roast about eight tons of coffee in a single month. In terms of coffee addicts,that's about three million cups.
Worldwide, it's estimated nearly one and a half billion cups are consumed every day.
"We just try to get the best out of it once we get the bean," Roastmaster John Clark said. "I go to a lot of trouble to pick only the best coffee's I can find anywhere in the world."
But a drought in Brazil is creating some worries among coffee traders that the price could go up. Trading prices went up nearly 80% a few weeks ago, but haven't trickled down to coffee drinkers yet, because roasters typically contract the price of their beans about a year in advance.
"So we're all kind of holding our breath really, to see what it's going to be," Clark said.
Just like the stock market, the coffee market will shift too. That shift is created by coffee traders, so while there is real worry about the drought, it's too soon to tell exactly how it will change the price for your morning cup.
"The Brazilian drought is very real, but the impact of it on the crop is somewhat speculative still. So the commodity run-up has been due to rumors of what the result will be."
Because coffee is bought in yearly contracts, it's likely we won't feel the affects of a possible price increase until August or September of this year.