According to a recent AP article, Starbucks will open a café in LA that will have a "modern farmhouse" theme. The restaurant will sell wine, beer, cocktails, and milkshakes and ...are you ready for this... "build-your-own burgers" among other things. Is Starbucks trying to use Wal-Marts business model or perhaps Mc.Donalds. Starbucks do what you do best, sell coffee! What's next Starbuck paints and varnishes?
Weather unpredictability/climate change is a leading factor in future coffee prices. Making the small coffee grower looking to expand their land used to cultivate coffee. Felling of rain forests will accelerate current trends in a changing climate. adding even more unpredictability to coffee supplies and future prices. With the current world price at 90 cents a pound is making profitability in many countries nearly impossible With production cost at about $1.50 per pound. The shortest answer is to grow more coffee witch takes more land, ,fewer trees, more c02, additional climate effects . Climate change and general weather unpredictability are one of the driving forces in the roller coaster ride coffee prices are having and will likely continue to have in the foreseeable future. Perhaps second only to the never ending political unrest in many coffee growing regions.
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