Here's Why Your Next Cup of Coffee Will Cost $25 

Spending 50$ extra on coffee is no problem since I decided to watch Skill Share now I'm an international oil tycoon. Thanks Skill Share!

I am sorry , but i have to disagree with this video , i live in Brazil , the world biggest coffee exporter and i live in the region of Brazil that has the most coffee plantations (In the south part of the state of Minas Gerais) and there are two points that I would like to make First : Coffee plantations owners in Brazil do not compete among themselves , they have cooperatives in with all the owners store they're coffee, the cooperative sells coffee in bulk for exportation making the most out of every harvest . Second : All most all of the plantations over here are fully mechanized , the only hand picking is done in areas very close to the mountains were the machines cannot reach . The plantations over here are huge , the medium size is about 500 hectares of coffee plants , its more of an industry than farms , and due to that and to the constant advances in technologythe prices of Brazilian coffee are keept "low". Thanks everybody for the likes and comments

*Sips tea intensely*

If you're buying coffee on Starbucks you're already doing it wrong.

I live in Colombia. And I can assure you, coffee prices are probably not going to increase. Colombia's economy is absolutely wrecked.

How did you get to 25$? No explanation, in the video, why not 30, 50 100 ?

With western wage also come western tech that are far more efficient than hand picking. It will never cost nowhere near $25 a cupeven though it will get more expensive.

Damn that's so sad for the farmers. I wonder how it's possible that in my country, Italy coffee has always remained so cheap (1€ or even 80c in some places) over the years despite prices going up for everything else. Could this be because the demand is so high and bars can therefore afford to sell them for this little profit?

Anyone else notices Business Casual and PolyMatter uploading on the same days recently!?

There's coffee made and produce in Hawaii. One of the most expensive states in USA and the coffee is not even near $25 a cup. It's about $20 for a 1 pound bag of freshly ground Hawaii grown coffee.

Beg to differ: A cup of Joe will again only cost one dime, as long as that dime is again made of pure silver.

Unfortunately, only the respective countries themselves can fix these conditions. The biggest problem: they are highly corrupt.

I would never pay $25, in today's money, on a cup of coffee. I'd just quit. And so would everyone else. Problem solved.

Not if you make the infamous Graham Stephan 20 cent iced coffee!

Nice funny Fuzzy Math on your economics nobody's going to pay $25 for a cup of coffee now the only reason that would ever have a possibility of happening is if the Federal Reserve keeps printing money and a loaf of bread cost $50 then maybe but not based on your economic model

Your "insight" just shows one thing: an incredible lack of basic economic understanding. On a market, prices are determined by demand and supply, not by what somebody for whatever reason considers "appropriate". That equilibrium market price is the true value of the good and thus fair. If the price of a cup of coffee would be artificially raised to e.g. 25$ practically nobody would drink it and switch to a competing substitute (tea, cola, juice, water whatever). As a result of a drop of demand to practically zero, the coffee industry would completely collapse and vanish within weeks and coffee farmers would have an unsellable good, and thus no income, leading to starvation or them having to grow something else with even lower profit margins. That's far worse than their current situation. People grow and farm coffee, because that's the most profitable option they have. If they would have a better alternative (which they don't), they'd pursue that instead of coffee. They might be poor, but aren't completely stupid. That's why people today farm coffee, because doing so makes them better off than all alternatives they have. It's incredible, that people operating a "business oriented channel" don't seem' to have the slightest understanding of economics and markets. Get yourself a beginners economy textbook man.

$25 coffee is a guaranteed way to ensure nobody buys it

Thanks for making the Socialist case for why when You price a product with emotional appeals, everyone stops using the product and the Makers of original product Go broke and starve!

Don't forget that the plant is very sensitive to climta change.

I normally love your videos, but this one wreaks of assumptions.... It's hurts the message you're trying to share when it feels like you didn't fully research the issue.

but it won't because market forces will spawn innovations and inventions that allow for a method of harvesting if their cheap sources of labor go away. see cotton gin

No. Because of free market pricing. Coffee farmers farm coffee by their choice. If they don't like the coffee price, they can simply do something else. I actually never drink coffee, and I do pity the plantation workers. But that's just what free market is. It is just not meant to be viewed from ethical perspective.

drinking water intensifies

Coffee will never cost $25 of 2019 USD. Long before it gets near that automation and specialized farming equipment will replace much of the labor costs. Just because it's picked by hand today when labor is way cheaper than it ought to be, doesn't mean it will still be picked by hand when labor prices increase 10 fold.

$25 for a cup will make drug cartels to switch to growing coffee, lol.

One question, if they can't break even, why tf are they growing it?

Graham Stephen with his 20 cent coffee right?

As someone college educated on ethics and anthropology I can tell you fair trade makes all the difference. Real fair trade is when a group of growers form their own group or co-op so they have pooled resources to get the advantage larger companies have. It gives them leverage on what prices the set, where they buy equipment, storage areas, and a community of growers that help support each other. As regular people cant go to columbia and give growers money for beans buying fair trade is the only option we currently have that actually helps. That said rair trade is a label and making sure it's true to form is difficult do your research first before buying fair trade willy nilly.

I really enjoy your channel, thank you for educating me about business around the world

The best part of waking up is watching Buisness Casual and playing "Where's That God Damn Catboy Hiding Now OwO?" Also, for those wondering what I'm rambling about, look at the leftmost poster starting at 2:43.

You're not accounting for advances in robotics and artificial intelligence. Most of low skilled labor will be replaced in a decade or two, and commodity prices will be even cheaper, as that will also displace a large percentage of wage earning population and there will be fewer people that can afford coffee (and so many other things) .

Na, i think they'll just start using some chemical substances to produce a new kind of coffee that only contains 10 ‰ or less of actual coffee. They'll keep the price the same untill you won't have any coffee in your coffee

Time to stack some coffee beans.

Tea shall reign supreme.

If developing countries advance enough they will be able to invest in automation which would bring labour costs down hence prices down.

As the price of labor goes up the incentives to automate will kick in. Coffee will end up cheaper than ever and workers will have to find jobs that are valuable enough to justify the higher wages. How do you not even mention automation in this video?

great video

The people who buy that "fair trade" coffee are actually some of the worst people in the world. The reason is: the price of so called "fair trade" coffee is actually set by the governments of the countries where it is produced and those governments force coffee growers to sell their coffee at well below (50-75%) its actual market value in order to "keep prices fair", under that system the only people who actually make any money are the middlemen who sell it on into the market. That is why you should NEVER by "fair trade" anything.

This is a bullshit video. A cup of coffee will never be $25 in our lifetime. Even if developing countries increased their wages significantly, the United States would then import from poorer countries. There are three things guaranteed in life at all times: death, taxes, and cheap labor. Contrary to what Business Casual speculates, you will always have cheap labor to produce coffee and deliver at the affordable prices even though I find the $5 cup of Starbucks coffee hardly affordable. The refills make it somewhat worth it.

Kinda naive to believe every country will eventually progress to 1st world status, i mean maybe with enough time maybe. Human conflict and disagreements are everywhere though, unless under a global tyrannical government forcing the people into its will came to power. I think i can bet on automation being able to grow coffe by the time every country is up to 1st world standards.

"as developing nation's advance" they will create machines to take the labor jobs, the laborers will have to change professions, and life will go on as it has.

Can you please do one on Cargill, Incorporated

Starbucks Employee: It will be $3.00 Me: *Handles $25* Starbucks Employee: But Sr, its just $3.00 Me: Send the change to the underpaid coffee workers

Looks like I have to quit drinking my 2 cup of morning coffee.

If it was done in America and it cost $25 we would have robots and vision systems and automation and the price would eventually go down

Hey BC, I usually really like your videos, but the logic in this one is totally flawed. According to it, everyone is selling coffee at a loss. If that is the case, in a few years, all farmers would be out of business and supply would suffer, raising prices. Since prices have fallen, most likely the opposite is happening - more farmers are becoming more efficient and driving small scale, inefficient farming out of business. You're wrong in assuming prices are set externally, and not by the coffee beans suppliers. Despite being a commodity, price is still set by producers

Can you please do a video on why the Wii failed?

Let's go back to beer in the morning and beer breaks at work like it was before coffee.

Never understood the appeal of coffee. Tea is a gazillion times better

So why don’t farmers grow a different cash crop? Is it that the land isn’t suited to produce anything but coffee, or that there isn’t enough financing to switch to something else?

It tastes better than tea but caffeine is not that good. It disturbs sleep pattern.

I am a farm of coffee in East Africa Kenya and the prize of coffee is so low that we have started cutting down the coffee trees

I drink about two pots of coffee each day myself. Make it myself at home with a drip coffee maker and a can of Great Value coffee. Awesome!

In 1972 a cup of coffee was 5 cents a cup at Dennys .

Brazil and Vitenam are producing at recored high and this pattern will contaniue for couple of years... Coffe price will go further down

If that happens people will riot. Although I can't imagine foldgers price going up too much.

How do you explain the fact that coffee grown in HI is the same price as the coffee from developing nations? It doesn't need to cost $25, but inequality is an issue.

Sorry, but how did you get that 25$/cup price? I just did a little calculation to find it out what it would really cost. The last time I bought a kilogram coffee in the supermarket it cost me 7€, so let's say that is 8$. To an espresso 7 grams of coffee should be used, that is 143 cups of coffee for 8$. So one cup costs 0.056$. You say it should be 25$. That is 447 times more. So the wage of the people should be increased by 447 times. If they get 250$/month, as you said, then it should be 110 000$/month. That's ridiculous. Now take some average western salaries, let's say 3000$/month (which is really good for a laborer). That's 12 times more then the actual salary you mentioned. It means a cup of coffee should cost 0.056$*12=0.67$. It's not that much...If Starbucks would increase the price of each cup by 50 cents (and not increase their own profit by 1200%) than all coffee pickers could have western wages.

Imagine how many ppl will pay 25$ per cup...1% from usual amount of coffee drinkers. No consumers - nobody need this 25$ coffee then. One 60kg bag of coffee will cost 300,000$ lol

Invest in coffee commodities

Come to indonesia, 25 cent coffee for everyone

I love good quality coffee, I am happy to pay more for my coffee as long as the money goes to the correct people, Keep the farmers and the staff happy and we all get good coffee

I heard this back in the 1990 first time and heard after to,if it ever happens we stop drinking coffee.

You have to add more details in your videos and make them longer ....

They can mask the call under you contact so you can't even notice it's easy all it does is route the caller id through your contact or rather it pitch a number from your contact list the masked it's number under neath it that is why never store close friend number under contact list and always clear you history log

I will switch to wine then. I don't see the conclusion makes sense. If a bottle of wine can be as low as $2, how come a cup of coffee has to be $25? The pocesses of both are similar....

6:40 so smooth

So what you're saying is we need coffee picking robots?

2:44 ....... I found Felix.

Anyone believe this nonsense? Coffee grows in many countries, and the price of roasted coffee has not increased as can be seen in my local markets. Starbucks' woke prices are not indicative of anything other than Starbuck's pricing strategy.

Nonononononono call the Italian prime minister this is a state of emergency

How do you make your images alive?

When I saw this video in my feed I went and made myself a cup of coffee

Very good, time to quit, coffee is not a necessary product. Water is

First of all, you lied about the producers. Its actually greedy American companies who fixing the prices. Producers are just hostages. Second of all, coffee plays a huge impact on productivity. Most workers especially in West working extra hours because they are caffeine junkies. I understand that you put a stooge in Brazil but his days are numbered if you raise the prices further.

And I thought raspberries are unprofitable.(or barely profitable, depending on year)

What will business be in 2050

Good job I'm a tea drinker ...right?

The reason the price of coffee is not $25 per cup? Because there aren't enough suckers out there who are willing to pay that much.

It will never reach 25 dollars considering the demand will never exceed the supply. If most people won't pay for the coffee if it's 25 dollars then companies will make it cheaper or just won't pay for the beans anymore forcing the farmer's hands. Also coffee comes from all over the world not just from shit holes. The same can be said for literally any other item that's mined, farmed, or just generally harvested yet iron, salt, and meat has actually became cheaper as time passed even as poorer people have harvested these basic goods.

Maybe coffee should not cost more for the end consumer, but rather intermediary multinational companies should operate with a lower profit margin? Just a thought.

1:14 Wow, no wonder the price of stuff is going up, Australia and NZ entirely disappeared!!

250 dollars a month wage goes a long way in Latin America. Per example that’s the minimum wage of workers on Brazil. So it’s not an ultra low wage, it’s a low wage! But people working in McDonald’s or Starbucks in Brazil get paid the same or similar. My grandfather had a coffee farm.

Maybe just converting everything from dollars to other currencies may not be the right way to guess what’s good for them! Not related to this topic but just asking. Can you make a video on that?

Rather i will stop drinking if it crosses 20 cents in my city roadside shop

Welp, time to resort to coca leaves for tea.

2 years later....whatever

sry but coffee tasts like shit

*laughs in tea drinker*

whelp you just summed up my agricultural studies in 7 minutes

or eventually, there'll be a much cheaper solution because humanity

It all depends on how you drink your coffee. The Starbuck style is the worst, the most expensive and the most harmful to the environment (kilos of waste for a cup of coffee) way imaginable.

If we can design and produce automated harvesters, we'd be absolutely golden

Me : buying coffee beans and making coffee plants Also me buy other coffees

Ok coffee cost is increasing let’s create artificial coffee come on we are humans

Robots

I'd gladly pay double or more to ensure sustainability in the industry and fair pay to all.

This is why I drink tea

Demand would fall off a cliff with a 25% rise from todays prices.

Coffee. Pfft... wake up to a beer and feel better.