Could this be the end of cheap coffee?
In 1992 coffee prices hit rock bottom. A number of factors, including the explosion of cheap coffee from emerging grower Vietnam caused a crisis that eventually led to the formation of the Fairtrade organisation. Since then the trend has been for a steady growth, interspersed with the odd peak and trough. As with any market, there is always the possibility that we could experience another crash, but latest evidence suggests that this trend for growth may be permanent, and we may be seeing the end of cheap coffee:
Coffee leaf rust is a devastating fungal disease that is devastating growing regions in Central and South America at a rate not seen since it was first documented in 1976. Changes in the climate mean that this and other pests and diseases will become increasingly prevalent, and in another article I discuss how the much maligned Robusta may be our only hope for long term sustainable coffee production. Experts predict that coffee (and tea) will join other water and resource hungry staples such as beef and wheat, as those for which the era of plenty may already be over.
With coffee however,
It is impossible to predict exactly how much this will affect the price of your daily fix, but I think it is safe to say that prices are up and staying up. Selling coffee on price may become increasingly difficult, so the pressure is really on for cafes to make the most of their offering and justify those increased prices to an already stretched public. Small investments now, in equipment and training, may be the best way to protect small business in an uncertain future by keeping their customers loyal and happy.
Further Reading: Daily Coffee News – Coffee price spike for august