Commodity prices fluctuate tremendously. The reason is because demand can shoot up fast but supply cannot suddenly increase.
Often, supply will exceed demand once all the supply floods the market. This has happened often. We love coffee and new cafes are mushrooming everywhere but demand has not been enough to exhaust all supply. Therefore, 1kg of coffee will be approximately RM10. To produce a 220ml cup of coffee, approximately 10gm of coffee powder is needed. This means one can produce 100 cups for just RM10.
The coffee served to you in a cafe also includes the cost of rental, the salary of the barista, electricity and… you get the idea!
Source: Real Estate Daily Report (realestatedailyreport.net)
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