How Extreme Weather Caused By Climate Change Is Shaping The Future Of Coffee – CoffeeTalk
Coffee drinkers worldwide are facing a rising cost of their daily cup of caffeine due to the increasing risk of extreme weather conditions. In December, futures of Arabica coffee reached their highest level in nearly 50 years, while Robusta coffee, known for its strong, bitter flavor, reached a record high on the ICE-LIFFE futures exchange. The main drivers are Brazil and Vietnam, the world’s two largest coffee producers, experiencing drought and heavy rain during critical growing and harvest periods, and demand for the drink, particularly in emerging markets like China and India, continuing to grow.
Severe weather conditions have strained supply chains and challenged traditional procurement models over the last decade, ultimately driving up coffee prices. Brazil, which accounts for roughly 40% of global coffee production, exemplifies the fragility of this balance, with its reliance on Arabica beans, which are highly sensitive to climatic changes, amplifying the risks. In 2015, Brazil’s coffee belt was hit by one of the worst droughts in decades, and crop yields dropped significantly, leading to a 100% increase in prices.
The market is becoming more attuned to the effects that extreme weather events can have on commodities like coffee, introducing a layer of volatility that extends from producers to consumers, who ultimately bear the cost of higher prices. As extreme weather becomes more common, questions arise about the long-term affordability of coffee and its accessibility to the average consumer.
As shifting weather patterns continue to wreak havoc on the market, adaptation strategies will be essential to ensure the resilience of coffee production. Producers, investors, and governments must prioritize the development and adoption of adaptive agricultural practices, such as diversified sourcing and collaborative efforts across the supply chain. By embracing forward-looking solutions and fostering greater cooperation across the industry, it may be possible to mitigate the risks posed by a changing climate and secure the future of coffee.
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Source: Coffee Talk