Red Cat coffee grounds — Coffee bean prices are skyrocketing across the globe. (Jordyn Davis / Bham Now)

According to The New York Times, climate change has significantly impacted coffee prices, sending them through the roof and wreaking havoc on coffee suppliers.

The cause is largely due to rising temperatures, droughts and excessive rains. While many of us love a good cup of Joe, this new rapid increase is extremely harmful to suppliers across the country in cost and regulation.

We talked to two local coffee shops—Red Cat and Seeds—about what these changes could mean for their business.

Why are coffee grounds so high right now?

Birmingham, Seeds Coffee Co., tea, hot tea, coffee and tea — It’s all in that pour. (Seeds Coffee Co.)

Coffee plantations are widely affected by droughts and wind storms that cause producing regions such as Brazil and Colombia to increase prices.

The warmer temperatures and frequent disastrous storms are causing inconsistent yields and lower-quality beans, but demand for more coffee still remains high. While the prices are increasing, which may appear to be a good thing for farmers, the unpredictable rates cause financial stability.

“Some see more expensive coffee as a corrective to an international system that has long underpaid producers, having the potential to rectify generations of injustice and environmental destruction.”
A New York Times article stated

What our local coffee shops are saying

Red Cat — A perfectly crafted latte is always a good idea. (Jordyn Davis / Bham Now)

Seeds

Q: Have prices increased in purchasing coffee beans? How has this affected your business and customers?

A: “Pricing for green or raw coffee has increased to a 50 year high. We are paying nearly 40% more for coffee than we paid 8 months ago to a year ago. We are having to adjust our retail and wholesale pricing because of the price hike. So in the end, the consumers are the people whop are being penalized the most.”
Jeff Huey, Co-Owner, Seeds Coffee Co.

Red Cat

Q: Are your coffee suppliers giving you any insight into when or if prices may stabilize?

A: “Although the prices have increased tremendously, people still live by coffee. It’s almost like our business is unaffected because still so many people are coming in.”
Julia Kimmel, General Manager, Red Cat Coffee House

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