Forecast: Coffee prices to push higher

|By:, SA News Editor

Strong local demand from coffee-producing nations Brazil, Vietnam, and Colombia could help keep coffee prices elevated this year.

Overall coffee demand is expected to hit a record this year due in part to rising incomes.

Though the upsurge in demand is primarily for the lower-priced bean varities, there is also a slow global shift in mix toward the higher-priced Arabica beans under way.

Starbucks (SBUX +0.6%), Dunkin Brands (DNKN +0.3%), Kraft Foods Group (KRFT -0.3%), and J.M. Smucker (SJM +0.1%) have all increased prices on coffee this year.

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