The problem for today's consumers: The global coffee supplies come mainly from just two countries

Published 2024년 9월 3일

Tridge summary

The article highlights the potential of small coffee producers in Peru, Thailand, and other countries to become key players in the coffee industry as a result of climate change impacting traditional major producers like Brazil and Vietnam. This shift has led to increased investment in these countries by coffee companies such as Illycaffe, Volcafe, Starbucks, Lavazza, and Nestle's Nespresso. While these investments may not immediately reduce global coffee prices due to the production efficiency and low costs of larger producers, they capitalize on growing consumer demand for premium coffees sourced from smaller countries. This trend, fueled by the COVID-19 pandemic's effect on consumer preferences towards quality and traceability, could potentially improve the prospects of small coffee producers despite the challenges they face.

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

Original content

Coffee from Peru, Thailand and other small producers was once a luxury for coffee drinkers. Now, as the planet warms, it could be the key to the future of the coffee industry, Bloomberg reports. Coffee is grown in about 40 countries around the world, but more than half of global production has long come from just two: Brazil and Vietnam. When extreme weather hits those two countries, prices skyrocket. The trend is creating new momentum for coffee industry investments in countries from Cuba to Rwanda. The market is already there, as consumers look elsewhere for coffee. “The situation is urgent, 2024 proves that we should not underestimate the impact of climate change,” Andrea Illy, CEO of Illycaffe, said in an interview with Bloomberg. It’s starting to change the market. Illy's family-run company, founded in 1933, has returned to eastern and southern Africa to buy coffee. It is also looking beyond Brazil and Vietnam. In May, coffee trading company Volcafe raised $60 million ...

Source: Vinanet