Tag Archives: climate change

Drought in Vietnam creating coffee price concerns

Vietnam is experiencing a really bad drought right now, and if they don’t get rain in the next few weeks, the impact on coffee crops could be huge – maybe as much as a 30% decrease in production this year. They’re primarily growing Robusta beans, not the higher-quality Arabica beans used by all specialty coffee shops, but this would still impact everyone. Producers who typically package these Robusta beans may have to blend in some more expensive Arabica ones…raising the price on the product being sold as well as increasing demand for Arabica.

Of greater concern is that variability in supply like this is likely to become the new norm as climate change impacts these small coffee-producing regions of this planet. The future availability of this crop is uncertain, and while there will always be coffee beans produced, the supply is likely to be variable and may wreck havoc on companies that rely upon it for their business.

(via Bloomberg)