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INCREASING COSTS OF COLOMBIAN AND “OTHER MILDS” IN THE COFFEE MARKET

Colombian and “Other Milds” Prices

Cents per Pound over the Coffee “C” Market

q The Chart above illustrates the current volatility and rapidly rising prices for Colombian and “Other Milds” on the world coffee market.  This increase was a result of poor harvests and unusually wet conditions in the coffee growing southern hemisphere.

q The chart indicates Columbian coffee trading at a record premium of $1.00 over the current "C" Market price.  The premium represents the increased cost that we are passing on as a price increase as we see no relief from this market condition. 

q The supply issue and volitility of Columbian coffees has increased demand and prices for all other coffees as well.  The chart indicates "Other Milds" trading at premiums of $0.30 over the current "C" Market price.

q We have negotiated with our suppliers to limit our price increase at this time to $0.75 and $0.25 respectively.