Why have coffee prices

Why have coffee prices dropped dramatically — 82% in 4 years — while lattes remain just as expensive? (Link via Atlanticblog) Vietnam entered the coffee trade and Brazil upped production Coffee production decisions lag behind price changes because the coffee tree is on a 2+ year cycle While the number of specialty coffee shops has grown from about 450 in 1991 to more than 10,000 today, total coffee consumption in the U.S. has actually fallen slightly Demand for coffee is relatively inelastic (a 10% price increase reduces consumption by about 2%) Actual coffee is a very small component of the cost of a latte (roughly 10 cents on a $2 cup)

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