Climate and price
To some, coffee is just a morning jolt to start the day. Or maybe a “keep me focused” drink when I need a lift. When you look at coffee as a global commodity, it is one of the world's most traded products-top 10 in value in the world economy. As an industry, it employs millions of people around the world through its growing, processing and trading. Most of the production occurs in developing countries with 75% of the coffee being grown on farms of 10 or fewer acres. To those farm families, it’s not merely a business - coffee is their life. On the consumer end, most of coffees consumption is in industrialized countries where big business controls the fate of producers. Did you know that coffee accounts for nearly half of the total net exports from tropical countries and is in many ways representative of the economic and agricultural issues that developing countries face today? One of the most concerning agricultural issues facing coffee production is climate change. Here are a few facts you may not know about that cup of morning joe we enjoy each day and why we believe we should all care.
Global coffee prices have surged 21.6 per cent this year
Climate change and global supply chain issues are behind the rising cost
Importers of specialty beans from Brazil have been hit with a 40 percent price hike
Those annual figures are the average of monthly prices of Arabica (highest quality) and Robusta (lower quality, commercial) green, or raw coffee beans.
"We have not seen that type of price peak since 2014," said Suzy Oo, senior industry analyst at IBISWorld, who compiled this data.
This means coffee drinkers could soon be paying more or be served a poorer-quality brew instead, as global price hikes hit the local coffee industry.
What's behind the price rise? Climate change-related weather events have affected key coffee-producing regions and global supply chain issues are hurting importers.
Brazil, the world's largest coffee producer, accounts for about half of the world's supply. Drought and severe frost have wiped out a large percentage of crops there, as well as in some Central American countries. Moving around the globe, drought in North Africa has also affected the supply from that region, while increased shipping costs have added to the price rise.
We’re watching the markets very closely and holding the line on prices in the face of these changes. One thing will never change. You will always receive fresh roasted coffee from Cupper’s Choice sourced from the finest Arabica beans. Your coffee will always come from sustainable farms where we ethically produce, process and ship to your door. Prices may change, but our values and quality will stay true.
Ron and Tracy