Climate Change Means Coffee's Future May Depend On Niche Growers – CoffeeTalk

Coffee producers are increasingly diversifying their supply chains to ensure climate-proof supplies and meet the growing demand for diverse flavors and aromas. Brazil and Vietnam, the two countries that produce over half of global coffee production, face increasing risks due to bad weather and destabilized climates. This has led to a surge in prices for coffee, with prices reaching a record high due to bad weather and disease in Ivory Coast and Ghana.

Coffee importers and roasters are investing in diversifying their supply chains, supporting farmers in countries like Peru, Tanzania, Rwanda, and the Democratic Republic of Congo. However, smaller producers lack the economies of scale of Brazil and Vietnam, often relying on family farms for harvesting. This has led to the industry’s reliance on just two countries, but consumers are willing to pay more for top-end, small-origin coffees.

Traders are racing to ship beans to Europe to stock up before the region’s new deforestation rules kick in at the end of this year. Importers must prove that commodities don’t contribute to destroying forest land, making coffee particularly vulnerable to compliance challenges. A new platform is slated to launch later this year to provide a solution to the EU’s traceability requirements.

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