Climate emergency and costs drive up coffee prices and challenge producers

Published Dec 13, 2024

Tridge summary

The coffee industry in the Americas is facing challenges due to the climate crisis and rising costs, with extreme weather conditions affecting production in countries like Peru, Costa Rica, and Honduras. Despite these challenges, Colombia has seen a increase in production, becoming the country's economic engine. However, the industry faces sustainability concerns and the need for plantation renewal. Other countries such as Mexico, Peru, and Honduras are experiencing declines in production due to drought, yellow rust, and high production costs. The global coffee market is experiencing price volatility due to factors such as weather conditions, pressure from hedge funds, and new European legislation on deforestation.

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

Original content

The climate crisis and rising costs are marking coffee production in the Americas. While Colombia is increasing its production, countries such as Peru, Costa Rica and Honduras are facing challenges from extreme climates, high costs and volatile markets. Although international prices have risen, small producers are struggling to make a fair profit. In 2024, coffee prices have reached historic highs, driven by extreme weather factors affecting the main producing countries. This panorama has reconfigured the global coffee economy, benefiting some actors while challenging others. With a 70% increase in Arabica coffee prices, the situation is putting both producers and consumers in check. The climate emergency has intensified the challenges for the main coffee producing countries. While some have managed to take advantage of the price boom, others face structural and climatic difficulties that threaten market stability. Against this backdrop, sustainability and innovation become key to ...

Source: PEefeagro