Why coffee is getting more expensive

Coffee drinkers are getting a taste of higher prices. J.M. Smucker Co. on Tuesday became the first major U.S. roaster to lift coffee prices in about three years, announcing an average 9% increase in the cost of popular supermarket brands such as Folgers and Dunkin' Donuts. In late April, futures hit their highest price in more than two years as forecasters predicted a drought in top grower Brazil would reduce global supplies of coffee beans. Brazil produces half the world's arabica coffee beans, the variety used by Starbucks Corp. and others.

by via Yahoo! Finance: Top Stories