Coffee Bean Apocalypse Called Off As Surplus Sends Prices Tumbling
For years, the mainstream media was predicting a coffee bean apocalypse caused by climate change. In 2018, the SF Gate reported:
It turns out that coffee is the latest food item to be under threat due to the rise of global temperatures.
In a recent study, it was found that 80 percent of areas in Brazil and Central America that grow Arabica coffee will not be able to carry on growing those beans by 2050 if current temperature trends continue. Internationally, that decline is estimated to be 50 percent, resulting in a spike in prices and a drop in production.
And in 2015, Bloomberg reported that a “global coffee shortage was looming” as the “market braced for climate change.”
The coffee-drinking world needs another Brazil, the world’s top grower and exporter of the beans if it’s to avoid a shortage.
Rising consumption, especially in emerging markets, means global production will have to rise by an extra 40 million to 50 million bags of coffee in the next decade, said Andrea Illy, the chairman, and chief executive officer of Illycafe SpA, a roaster based in Trieste, Italy. That’s more than the entire crop of Brazil.
Now we’re drowning in too much coffee (must be all that CO2 that plants love) while demand for anything with caffeine surges. Even in Central America, where pandering Democrats tell us climate change is decimating the area, they’re overproducing too much coffee. From City AM:
A record seasonal surplus of beans being produced pushed down coffee futures to their lowest levels in more than a decade during April, with a rise in demand for caffeinated drinks failing to stem the plummeting prices.
In Brazil, the world’s largest producer of coffee, a surge in production of arabica and robusta beans, as well as a weak currency, has led to a dramatic oversupply of the commodity within the world market, putting downward pressure on prices.
Producers in traditional coffee heartlands in Central America, Colombia and Ethiopia have been reportedly considering to call time on the coffee business in the wake of the price slump, sparking fears for the future of the industry and local economies.
“C” arabica futures, one benchmark for global coffee prices, tumbled 29 percent from October 2018 to April, when they hit a 13-and-a-half year low, according to IHS Markit’s Agribusiness Intelligence.
Meanwhile, coffee production rose to a record 174.6m bags of 60-kilogram beans during the current season, marking an eight percent rise on the previous year.
Anytime experts tell you that climate change will cause X to happen, make book on the exact opposite occurring.
Read more at climatechangedispatch.com
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