Kim Peterson reports at that coffee prices hit a 34-year high earlier this month, but Starbucks (SBUX) doesn’t seem to be too worried.

The company has already locked in its coffee costs for the year, John Culver, the president of Starbucks Coffee International told Swiss newspaper Tages-Anzeiger. So as other food producers struggle with the rising costs of raw ingredients, Starbucks has kept a lid on costs of its most important material.

Culver said he thinks the cost of coffee will come down. “We think that these prices are not based on facts given there is no supply problem,” he told the newspaper, according to Reuters. “Speculators are at work here.”

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