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NEW YORK (CNNfn) - Coffee is hot and prices are rising -- and not likely to back down anytime soon.      Coffee prices plummeted Friday, backing off their recent highs of $3.18 a pound, closing down 38 cents at $2.76 on the coffee exchange in New York.      But analysts, traders, and roasters see today's action as only a break in a storm. They say prices could soon threaten the all-time record high of $3.40 a pound      "When you have a situation where there's a world shortage of coffee ... people get very emotional and they'll pay just about anything to get a hold of that coffee," said David Martin, a coffee trader.(QuickTime Movie 1.1M)      Customers are certainly paying up, with Folgers, Maxwell House, and Starbucks all announcing increases in their coffee prices. It's a trend that worries small coffee roasters.      "Its very difficult to go to a customer and say to them, 'Hi, I'm glad you're my customer and I'm glad your happy with my quality and service, and oh yeah, the price of coffee is doubling on Monday,'" said Don Schoenholt, CEO of Gillies Coffee.      Coffee consumption in the U.S. has been on a steady decline since the early '70s. But as Americans began drinking less, they developed a taste for better and more expensive coffees. That has led analysts to believe the latest round of price hikes will have a minimum impact on coffee-drinking habits.      "Kitchen sink will consume less and ... restaurants that are paying higher prices for coffee might not top off your cup anymore," said Judith Ganes, coffee analyst for Merrill Lynch. "They might not offer you that second cup so freely and that's probably the only area where you'll see the slippage."      Then there is Robusta, a bean that is not as tasty as the Arabica beans Americans have come to love but costs a dollar per pound less. The market could be on the verge of a triumph of the pocketbook over the tastebud.

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