Climate Change and its Impact on the Coffee Industry
By admin September 2, 2016

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Coffee shortages has become a recently popular subject in the field of trade and investment, especially under increasing climate change, which has begun to affect the quality and quantity of the world’s most favorite beverage.

An article from Business Insider this week noted that the global coffee supply is currently at risk, with shortages already starting to affect the pockets of consumers worldwide. According to a recent report from The Climate Institute of Australia, half of the areas suitable for growing coffee will be lost by 2050 if climate change remains unchecked. Prediction such as these do not steam only by the environmental research group, but coffee producers such as Starbucks and Lavazza also agree. Mario Cerutti, Green Coffee and Corporate Relations Partner at Lavazza, said at a hospitality conference in Italy that climate change would have an adverse effect for coffee consumers in the coming years, and is no longer a concern of the future.

What are the bases of the prediction that the coffee shortage is near us? According to another report by International Coffee Organization, the world coffee consumption in 2015 is 152 million and has been increasing with a compound annual growth rate of 2 percent worldwide. The growth rate of coffee consumption is highest in Asia & Oceania region, which means that the coffee consumption in emerging countries has a great impact on the increase in coffee consumption worldwide. According to the report from Bloomberg, because of increased consumption in emerging markets, global production must increase by 40 to 50 million bags within the next decade in order to meet demand. There can be many factors that hinder the amount of coffee production every year. According to an article from Time Magazine, droughts in Brazil and other parts of the world have made harvesting coffee beans more difficult.

In efforts to prevent the coffee shortage from happening in the future, the Climate Institute suggests that governments and companies that aim to avoid the economic, social and environmental costs of dangerous global warming, should recognize the urgency of this matter that we need products, business models and economies with at least zero-net greenhouse gas emissions. And for the consumers, it suggests that we need to learn about the challenges we face and should be meticulous on choosing sustainable coffee brands, which guarantee a fair return to smallholder farmers and their communities, and help them build their capacity to adapt to climate change.

For more information:
A coffee shortage is looming — here’s how soon it could be extinct
A Brewing Storm: The climate change risks to coffee
There’s a Major Global Coffee Crisis Brewing
Don’t panic. But there’s a global coffee shortage
Global Coffee Shortage Looms as Market Braces for Climate Change


Thanks for sharing !

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