Global coffee trade grinding to a halt, hit hard by brutal price hikes
Global coffee trade grinding to a halt, hit hard by brutal price hikes
63 comments
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How about this explanation:
There is a reduced supply of coffee beans. Let's say 30%. This requires that 30% of customers have to be priced out of the market.
If the coffee shop owners only increase the price by several cents then the demand stays the same. They have to fight for coffee beans which drives up their costs step by step.
However, if they increase the price in advance, and far more than necessary right from the start, then the reduced demand matches the available supply and the value of the coffee beans roughly remains the same which allows them to profit from most of the price hike.
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There is a reduced supply of coffee beans. Let’s say 30%. This requires that 30% of customers have to be priced out of the market.
this is fiction writing. you are literally making that up
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What do you mean? There are globally less coffee beans available. Or do you mean the 30%? That's just an arbitrary number, as I tried to make clear by writing "Let's say ...".
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the price doesn't need to change at all. if it does, it is a decision someone makes.
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Then you have more demand than supply because there is not enough coffee for everybody. This leads to people queueing and some people leaving without coffee.
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maybe. but you're making up the story so you can tell any story you want.
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63 comments