Northern Michigan Coffee Shops May See Increase to Coffee Prices

Coffee prices have steadily been on the rise for three reasons – supply chain disruption, poor growing conditions and an increase in demand.

It is the perfect brew for rising coffee prices. As coffee shops begin to reopen, post-pandemic, there is an increase in coffee demand. Meanwhile, the U.S. Department of Agriculture is reporting a 19 percent decrease in coffee production in Brazil- the largest coffee producer- due to drought conditions. This all compounded with a higher price for shipping and a lack of shipping containers.

“We’ve been told that August 1st we will see a 10 percent increase in our costs,” said Beth Wallin, owner of Cadillac Java and Java Too.

Prices have been on the rise for several years but as the world economy shifts after the pandemic there is a potential jump in price to meet the demand, especially where there is low supply.

“That price of coffee is dependent upon the market,” says Christ Treter, owner of Higher Grounds. “With the changing economy, inflation taking place, the cost of a pound of coffee -green coffee- by a producer on the market, price has increased about forty cents.”

Wallin has only raised her customer prices four times since opening Cadillac Java 10 years ago. Each time she says she raised the price by about ten to fifteen cents.

“We’ll see a three to five dollar increase per bag that we purchase,” says Wallin.

Customers may not see the price increase initially at the grocery store, but the slight cost may be noticeable at local coffee shops and restaurants.

Only time will tell when the price of coffee may go back down.