12/05/2009 - Coffee prices soar to 12-year high
The price of Colombian coffee could be on the rise after a period of bad weather and strong demand for the crop.
Bad weather has seen a shortage of Colombian Arabica and a programme to overhaul growth of the product by the Colombian government has seen the price soar to a 12-year high.
Last month Maxwell House increased its prices by 19% and Jose Sette, head of operations at the International Coffee Organisation (ICO), said it is possible that others will follow suit.
He said: "There comes a point when they can no longer keep delaying."
He added that roasters that have contracts just to use 100% Colombian coffee will be the most affected by the price rises.
ICO figures show that the price of Colombian coffee in New York trading rose to 220 US cents (145 pence) per pound last week, more than 60% up on its value last November.
Mr Sette said that Colombian coffee had risen "significantly" over the past few months, but Brazilian and other Arabica coffees are now also beginning to rise.
Copyright © Press Association 2009
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