Brazilian farmers can switch from coffee beans to other crops

Published 2024년 8월 5일

Tridge summary

The article highlights the significant increase in coffee prices faced by consumers and businesses due to a combination of factors, including adverse weather conditions, growing demand in markets like China, underpayment of farmers leading to unsustainable practices, and upcoming regulations in Europe against deforested land. These factors have led to a situation where coffee shops and roasters are forced to raise prices, with some shifting to cheaper components or alternatives like tea to retain customers. Smaller businesses are particularly affected, with larger companies like Starbucks able to mitigate the impact by locking in prices in advance. The situation has also led to concerns about fraudulent coffee brands cutting costs with impurities and a rise in interest in alternative coffee products and brewing at home.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

cheaper, less expensive components for a blend — I never thought it was the right strategy in the first place — but now it’s a strategy that just simply doesn’t work anymore,” said Michael Kapos, vice president for sales and marketing at Downeast Coffee Roasters, a family-owned retailer and wholesaler based in Rhode Island. “There’s nothing left to do than for coffee shops to raise their prices.” His company rolled out a 5% increase earlier this year. It’s not just weather, though, that’s driving up prices. Emerging demand in markets like China promises to keep supplies tight. There’s also a growing recognition that coffee traders and roasters have long been underpaying farmers, a trend some buyers are trying to reverse to make the industry more sustainable. Higher profits incentivize producers to keep planting coffee instead of other crops and allow them to reinvest in making their trees more resilient to disease and climate risks. If coffee prices don’t go up for growers, there ...

Source: UkrAgroConsult