Coffee Costs Impacting Local Business

The price of your daily cup of coffee is expected to increase, if it hasn't already.

The maker of Folgers, Dunkin' Donuts, and Millstone brands has increased its prices.

"Coffee is a commodity," said Albert Van Maanen, owner of Reading Coffee Roasters in Birdsboro, Berks County. "Coffee is like oil. It's in fact the second largest commodity imported in this country.

Van Maanen said what he has to pay for the green beans is what determines what he charges for the beans he has roasted.

"When that becomes scarce, then you have a lot of speculators that have a lot more money than the coffee roasters and they go in and start buying up the stuff," said Van Maanen. "Now you have to buy it from them."

Economists said coffee futures have surged 25% since June.

The manufacturer for Folgers and Dunkin' Donuts said it's raising its prices because it is based in New Orleans.

Folgers and Dunkin' Donuts said their prices are going up because of what's happening in the Gulf, but that's not the case here.

"The thing that I feel is the scarcity of the coffee because they didn't produce as much and it's also speculators that get into the market," said Van Maanen. "But it's a combination of all that. It's not just one thing that determines the price."

Van Maanen said people might be noticing an increase now because the larger manufacturers just increased their prices, but his wholesale prices went up in July when he bought.

"I don't want to raise the prices because I'm greedy," said Van Maanen. "I have to pay more money. I can't afford to sell to you for the same price."

Van Maanen said he tries to maintain his prices when he can.

"But of course you don't want to raise your prices to where you scare your customers away," said Van Maanen. "So you have to be very balanced about it."