Here's Why Your Next Cup of Coffee Will Cost $25
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- Опубликовано: 1 авг 2019
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Do you think coffee is expensive or cheap? In this video, we'll break down the economics of coffee and demonstrate why we think coffee should (and will) get more expensive over time.
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#Coffee #Economics #History
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⚠ 📣 *MAJOR ANNOUNCEMENT:* Business Casual is suing RUclips. We have just published a feature-length documentary about our case. It is being censored. If you are a fellow creator, you need to watch this. ➡ ruclips.net/video/4IaOeVgZ-wc/видео.html
Spending 50$ extra on coffee is no problem since I decided to watch Skill Share now I'm an international oil tycoon. Thanks Skill Share!
How come???
@@arefkhairan7493 🤣
need some proof
@@pauladc22 it's a satire bro 🤣
My friend Richard, I got rich with him investing in crypto so it's no problem to pay for expensive coffee
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
Very good. I like my decently priced cup of john
so funny.. all the ppl who actually know how things work know this video is crap. the rest are just western brainwashed dumb-bots. And yes I'm from the west and my statement still stands.
theAbeElement it’s the same thing in their other videos as well...it’s like they only do very superficial analysis or research before coming up with a click-bait title
This could use a heart or pin
Well, I'm Colombian and my family have a coffee farm. I know that in Brazil you have robusta coffee, but Here it's arabica (harvest by hand), and the geography of my country do not allow those machines cause the terrain it's not flat, almost all Colombian coffee comes from the mountains. And prices are too low, counting the pickers labour, processing labour, dry labour, transportation, water and energy bill, fertilizers.... Just to name some.
*Sips tea intensely*
But you japan person
Tea niggas unite
tea is life
Barry's tea is legendary
@AstronomyToday You probably do not care about economy of your production if you use tea bags instead of real loose tea (higher quality for less money)
If you're buying coffee on Starbucks you're already doing it wrong.
@Le Reese they've drastically improved their coffee over the past 3 years, atleast in Australia
why? im a huge fan of Starbucks
@@AndyinMTL then you'll barely notice when the price increases to 25 a cup.
See my page, I worked with the Farmers in Uganda to Plant, pick, Hull,wash, pulp wash, Float, dry and roast, We provided farm inputs as the Farmers had no hoes, no boots, no tools to do their work.
We believe partnerships are better than profits, we believe that parity is better than Greed, we dont want to pay less per kg of beans, we want to increase the value and share profits and we have done it!!!
if you buy sbux + mcd stocks, you're already doing it right * :)
I live in Colombia.
And I can assure you, coffee prices are probably not going to increase. Colombia's economy is absolutely wrecked.
Genetic Engineering is the next big thing That's climate change alarmist
Colombia's economy is fain compare to Brazil,Argentina,Venezuela....
Better grow cocaine
@@eric4681702 If you were to ask me cocaine makes more sense to grow & harvest than coffee being more profitable.
No wonder they are doing it even with all the risks.
@@leonardocavalcante1653 you're absolutely right. Although, I'm afraid, farmers just won't raise their prices. If they do so... They're out of business
Well here in Europe they increasing the prices for almost a year, because there's a pro American dictator in Brazil who fixing the prices so the american multinational corporations can have bigger profits.
How did you get to 25$? No explanation, in the video, why not 30, 50 100 ?
his shitty excuse was something about if the coffee farm workers were paid a wage that of western countries. I was losing interest not long after he couldn't comprehend supply vs demand & market saturation, so I could be wrong.
@@Alex632 wage of farmers of starbuck employees?
clickbait it is
If you want to know more, there is a video by How To Make Everything and Wendover Production video that breakdown the number
He thinks Colombian will be payed the average Westerner salary without being remplaced by Machines
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.
Well coffee is one of the most difficult crops to harvest because unlike wheat or rice or any other fruit, coffee beans do not ripe at the same time.
There are unriped berries just alongside ripe ones. For you have to carefully collect the ripe ones while leaving unriped berries completely untouched. So modern mass harvesting methods will not work there.
@@utkarsharyan here in Portugal we use those advanced harvesting means for coffee, 75% of the coffee we drink is Portuguese crop and a cup of coffee costs 65 cents.
@@utkarsharyan AI assistance and scanners will help us determine which ones are ripe and which aren't though i won't doubt it will start getting more expensive until said technology is widespread
@@RhelrahneTheIdiot What's going to happen when the robots raise their clenched hydraulic fists in the air and say, "NO MORE!" and then chant, "REVOLUTION!"
Then who is going to harvest your coffee for free?
@@drmodestoesq they are literally coffee robots all they know how to do is scan pick and roast coffee that would be the shortest AI revolution on earth
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.
Well, thanks for discrediting another "you should feel guilty" bullshit right here.
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?
They might make profit by selling you a samdwich with it or hack your personal data for sell
It's happening with dairy farmers in developed nations.
Unfortunately, only the respective countries themselves can fix these conditions. The biggest problem: they are highly corrupt.
I live in colombia and I tell you we are corrupt, but the real problem is the lack of infrastructure, is really low in most of those places, so the cost of transport is really high, for example in most of this countries tech is far exepensive to transport from the cost to the places, that from country to country, and the goverments just don't really care for the industries because well most of these were taught that if a industry isn't competitive then it should die.
Beg to differ: A cup of Joe will again only cost one dime, as long as that dime is again made of pure silver.
@GamingTV No need to enslave anyone. Merely allow free trade, supply and demand.
GamingTV I don’t know if I should thumbs up or down you
Did you come from truth never told channel too? Lol you’re right. When the central banks go down silver and gold will be what we buy coffee with
@@greg_austin Confederates are conservatives
@@mrbrainbob5320 Southern Dumbocrats. Sorry.
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.
What alternative do they have? Farming coca plants and being submitted to the rule of drug dealers? That's exactly what's happening un Colombia right now, and for that reason violence and crime are increasing drastically.
Human beings are ethical subjets, we need yo comprehend the ethical consecuences of our actions.
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.
Mechanization just adds more cost on top, to design the machines then to get them to work on the hillsides, and learn to pick the beans properly. On top of that, warming climate is making coffee harder to grow. Crops are dropping by 50% or more. It likely won't cost $25, it's not going to get any cheaper
@@carpo719 firstly your last point, coffee prices are lower than they were 30 years ago, I believe they won't keep going down for long but that not saying much when it's so cheap.
Most importantly mechanization WILL lower the price, I have no idea where you heard it makes prices go up, a machine will work for years and only need spare parts and mechanics, a person needs a wage no matter how low! And global warming will just shift production to the areas where the temperature is now suitable... The biggest issue with global warming isn't that it gets too "warm or cold" it's the storms and other weather phenomena that make it so dangerous.
Don't forget that the plant is very sensitive to climta change.
I just wanted to say I love the production quality of your videos!
I really enjoy your channel, thank you for educating me about business around the world
Anyone else notices Business Casual and PolyMatter uploading on the same days recently!?
Also Half as Interesting does upload at the same time as them.
This is weird.
My guess is that RUclipsrs know the best time of the day to upload so the video reachs more active people in the plattaform, or something like that...
Yes
They are the same person...
They are all the same person using time travel to achieve the work of a 100 people, and then they come back on the same day to upload the fruit of their labor.
drinking water intensifies
Thanks
Great value from here
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.
Yes and all the smokers used to laugh at paying $5 for a pack of smokes. Every person I knew swore they would quit way before it hit that much. They all still smoke now and it's about $7 no one gonna quit coffee what a joke. We will still buy it. Probably be more responsible about it. No Starbucks or fancy stuff. But ya we Will still drink our coffee.
@@BobSmith-lw9to Caffeine pills. A large cup of coffee has 200 mg of caffeine. A 200 mg pill costs 3 cents today. NOly people who drink coffee for the taste will buy which im guessing is a minority.
@@BobSmith-lw9to >Paying $7 for a pack of cigarettes
No son, you buy contraband cigarettes.
I live in Kenya. Yes, there is a bump coming as land available to coffee will go down by almost 60% in the next decade or so. But $25 might be a tad much. Either way, our prices will be affordable as the source 😊.
Your "insight" just shows one thing: an incredible lack of basic economic understanding. On a market, prices are determined by demand and supply, not by what somebody for whatever reason considers "appropriate". That equilibrium market price is the true value of the good and thus fair.
If the price of a cup of coffee would be artificially raised to e.g. 25$ 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.
I supported this opinion. Besides, coffee farmers are not solely sells coffee. In my country, coffee is grown alongside another type of fruits, i.e. lime/oranges/etc. It affects the fragrance and flavour of the coffee. Coffee farmers hard labour only comes once in a while because coffee takes a few years to mature. In between those free times they are taking their labour to takes care of other plants and fruits. From the producers standpoint, his opinion and 'research' is bullshit.
And yeah. Coffee farmers are not dumb, they know how to maintain their business, and how to take care of their workers (at least in my country)
@david stewart
The addictiveness of coffee is a little bit different than the one of heroin, this means that the price elasticity is pretty small and even heroin addicts switch to cheaper substitutes if they can't afford the real stuff. Exactly the same would happen to a luxury item such as coffee, but to a far stronger. You can't afford it anymore -> you get a substitute instead.
No to mention that on a market sellers over time always adjust the price in such a way, that profit is maximized. If they have done that, all further price increases will inevitably lead to a drop of demand (and thus decline of profit). That's how markets work.
Whatever you said your right about economics, but this is definitely not fair their working on farm by free will because they have no other oppertunities in their countries and have to sell their good for cheap forcibly due to compitition not by free will ( Inhumane wages are not fair that is the fact don't label it fair ). I understand buisness is buisness irrespective of fairness, but you atleast have to be honest about it.
Not if you make the infamous Graham Stephan 20 cent iced coffee!
Ah I see you're a man of culture aswell
$25 coffee is a guaranteed way to ensure nobody buys it
Exactly. This entire video is ridiculous. The only time coffee is going to be $25 a cup is when inflation makes that a similar cost to today's cups.
People would still buy it at 25$ a cup... they would just be idoits.
Love your videos more than you can prob imagine
great video
the way you make videos is great.
Time to stack some coffee beans.
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) .
nice picture
TheSaint135 I doubt that a robot can be able to harvest coffee. if it does twill be pure shitty coffee. if you understand coffee picking you get what I am saying
@@ed00001 TBH that's why so many governments have been experimenting with universal income. But caveat emptor, there's going to be strings attached.
@@mistainkredible4055sorry to brake it to you but robots are already picking strawberries. It's not a matter of if they can, it's a matter of when will the technology be cheap enough to make commercial sense. If you assume any rate of development whatsoever, then there's no way around it, it's coming.
NIce to see ya back
One question, if they can't break even, why tf are they growing it?
the creator of the video obviously doesn't understand basic economics, even though he has an intelligent sounding voice....
Word fluctuation should be focused on here
Probably theyve already established the plantation and have to sell anyway after 4 yrs? Also most farmers have little patience to change crops being masters of one for so long,
Another fascinating little quirk of trading between unequal parties and unintended consequences
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.
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
Tea shall reign supreme.
Heil to the Lord of Tea.
May thy have mercy and grant us your nectars, so we will hold our arms out wide to represent the letter "T".
FOR THE CROWN !!!!
If developing countries advance enough they will be able to invest in automation which would bring labour costs down hence prices down.
i love your content. please add Indonesia subtitle at every Business Casual video :)
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!
You suck, get a life. Herd sheep, learn to knit, build an emperium, rule the world.
Download Settles 6 on the Ubisoft website with 10% off by using promocode "coffee".
Thank you for reading.
Do history of Aston Martin. Or other company history videos. Love the history of company's way more than why things may happen
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
God bless you sir, you just wrecked this mans whole career
@Gitte WRONG
@Gitte This is not true. We are currently using a platform whose innovation and development came from the private sector.
Futhermore this comment lacks an understanding of why companies innovate. It is to make more profit by either lowering production costs or by providing new services to consumers.
Brilliant
Most of the coffee plantations don't need any work year around, just during the harvest, and most plantations grow rubber and spices in the same plantations.
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!
So precisely you picked their real agenda in disguise 👍
@@vipulsharma8362 can you explain? This video just went right over my head and now ur just confusing me
$25 for a cup will make drug cartels to switch to growing coffee, lol.
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
Sometimes at Starbucks I order a Chai Latte with Almondmilk and 2 shots of Espresso and it's 8.00. I only get this 3 times a month but it's definitely too much.
Time for a cup of coffee
how do you make moving pictures like this? what do i need to google to find this particular style of moving picture in this video? can anyone help me? thanks
I heard this back in the 1990 first time and heard after to,if it ever happens we stop drinking coffee.
And I thought raspberries are unprofitable.(or barely profitable, depending on year)
*Another fact this video missed is that most commercial coffees were beans that have been stocked in storages for more than 10 years, even 15 years before they even get roasted, packed and sold.*
6:40 so smooth
Graham Stephen with his 20 cent coffee right?
Which is completely a steal
You got that right! Haha
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
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?
I agree -- this doomsday future forecast will never happen --- Same kind of thinking said man would never fly.
he didn't even comprehend market saturation, so who knows
Nice theory, but always be people who collect, export/import and selling coffee for same prices, sometimes prices going up or going down, nothing will change. Only way to rise prices is create a deficit, but in modern history it’s happening very rare and coffee is not main product for it.
Brazil and Vitenam are producing at recored high and this pattern will contaniue for couple of years... Coffe price will go further down
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.
The mistake video does is that it takes a static view of a dynamic system and completely forgets what happens with increase of price of any commodity. I'm speaking of automation of course. Most obvious non "food" example would be oil price (in 50-ish $) that didn't rise due to advances in extraction, primarily fracking, which gave USA leverage (against OPEC). For a more relatable example look at some of the videos of Netherlands farms & green houses and how farming is done there. Once a price of raw coffee exceeds a certain limit that will lead to drop in consumption & profit of big trades/manufacturers, investment in automation technology will be made in order to bring it down.(perhaps a good example would also be olive farming & automation done there)
I think with so much demand, capitalism in the pursuit of profit, will try and find ways to make it possible to efficiently produce coffee at a good price.
The coffee retailers can try and get by with the selling of low amounts at high prices, but there will always be people that want that market share and will undercut and push the others out of the market with lower prices.
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?
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.
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.
When I saw this video in my feed I went and made myself a cup of coffee
When i saw the video in my feed i took a huge dump, although that was more related to eating pasta yesterday than the content of the video.
I'm moments away from heading to my kitchen where my cafetiere, coffee beans, grinder and milk frother await me! 😀
i remember my hometown used to be a Coffee plantation, when the price fall the farmers allow me to cut down their coffee trees and made toys from it.
now... the plantation became Real Estate
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
6:27 nice, ANOTHER ONE
Can you please do one on Cargill, Incorporated
Nonononononono call the Italian prime minister this is a state of emergency
What is graphics software used for? Please
.Please
Come to indonesia, 25 cent coffee for everyone
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
RIP Indian coffee king
To the people who think they'll be off the hook drinking tea instead of coffee, the manufacturing of tea is also quite similar to coffee. Both require extremely cheap harsh labour for harvesting and basic processing. Most tea pickers in my country, Sri Lanka probably dont make 5 dollars a day and there have been massive protests and strikes from unions demanding higher wages and better working conditions. Dont be surprised if the price of both tea and coffee go up dramatically in the next decade.
You don't even attempt to take into account a host of other factors. The biggest being automation and robotics. At the pace we see in those fields, ten years will give us the tech and easily the price point to replace really like skilled labor. Those companies will simply replace hard working employees that move on to better jobs with automation. Likely, they will BEFORE most of those people are ready to move on. Because the bottom line matters...
Fun fact: this problem only concerns for western countries and countries not in equator. We in the equator a.k.a the one who produces coffee could still enjoy affordable coffee, in fact, it is more profitable to sell coffee domestically than importing coffees.
In 1972 a cup of coffee was 5 cents a cup at Dennys .
I'd gladly pay double or more to ensure sustainability in the industry and fair pay to all.
Good advertisement for Skill share Bravo
1:14 Wow, no wonder the price of stuff is going up, Australia and NZ entirely disappeared!!
whelp you just summed up my agricultural studies in 7 minutes
As long as the coffee is of good quality and i get stoked on caffeine then i don't mind
It tastes better than tea but caffeine is not that good. It disturbs sleep pattern.
Then dront drink around bedtime, silly person
@@eric4681702 lol😭😭😰😥 I forgot but even when I drink it in evening it still fucks me up
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?
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
If we can design and produce automated harvesters, we'd be absolutely golden
Looks like I have to quit drinking my 2 cup of morning coffee.
No Mr Af. You can have ur coffee and drink it too
I’ll upgrade to 3, I ain’t given up my bean water damnit!
plzzz brother can u tell me how to edit your video and with which software U used
Not here in Brazil.
Hmm cost of labour is a problem and it might lead to escalating prices. Sounds like it's a likely candidate for automation.
Can we have a video on rise and income of the company "VALVE"
I LOVE THIS ETORO SOUNDTRACK THAT IS THE ONLY REASON I AM LISTENING AND NOT REALLY WATCHING
2:44 ....... I found Felix.
"There's a chance you're drinking one right now"
Me, while holding a glass of beer: *confused Pikachu face*
Honestly AI will probably help us in this field because it would be able to scan and see which ones are and aren't ripe the problem is getting this technology to people in nations that actually produce coffee
Rather i will stop drinking if it crosses 20 cents in my city roadside shop
Good job I'm a tea drinker
...right?
This is why I drink tea
Nectar of the gods!
Theobroma? Actually, that's chocolate.
Like an angel deficating on your tongue.