Can't function without that cup of coffee in the morning? You're not alone. The good news is that this daily necessity just might be cheaper in 2016, thanks to the rainy season in Brazil. The bad news is that this price decrease might cost us in the long run.
The favorable crop weather in Brazil for 2015 meant a strong growth in the Arabica coffee bean – one of the leading types of coffee beans in the world. In 2015 we saw the price of this bean drop 28 percent to $1.1915 a pound, and this trend will likely continue into the new year and even into 2017.
This is good news, as the United States is estimated to import an additional 500,000 more bags of coffee this year – totaling about 24 million bags – to reach an ever-growing consumer demand. One bag of coffee is roughly 132 pounds of beans.
While we can celebrate in the short term, according other sources, this trend isn't sustainable. With an increased demand for specialty beans, the increase in coffee consumption, and a changing climate, there could be a coffee shortage in as short as three to five years.
→ Read more: Morning Caffeine Fix Gets Cheaper as Rains Boost Brazil Supplies via Bloomberg