January 11, 2012
The three fourths of Americans that drink coffee are probably being economically affected by climate change. The Bloomberg article below points directly to climate change as the reason coffee prices remain high. Starbucks, noted in the article for having its farms affected, just announced a price hike; Grist’s Christopher Mims thinks this seems rather coincidental. If true, this serves as strong example of how Americans are literally already paying for the consequences of climate change.
Coffee Price to Remain Supported in 2012, Broker Carvalhaes Says
Cross-post from Bloomberg
by Isis Almeida
Coffee prices will remain supported this year due to climate change and market fundamentals, according to Santos, Brazil-based broker Escritorio Carvalhaes.
The price of arabica beans rose to a 14-year high of $3.089 a pound in New York on May 3 as heavy rainfall caused by the La Nina weather conditions cut output in Colombia, the world’s second-largest producer of the variety. Coffee slipped 5.7 percent in New York last year and closed 42 percent above the 5- year average, according to data on Bloomberg.
“Climate changes and market fundamentals will maintain prices in 2012, but we will continue to be tied to the developments of the euro-zone crisis and its consequences to the global economy,” the broker said in a report e-mailed yesterday.
Arabica coffee supplies will match demand in the 2011-12 season started in October after at least three years of deficits, data from Macquarie Group Ltd. show. Arabica beans are grown mainly in Latin America and favored for specialty drinks such as those made by Starbucks Corp.
Coffee growers in Brazil, the world’s largest producer, are investing in improving yields and bean quality, according to the Carvalhaes report, with “no significant increases” in planted area.
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.
“The Bloomberg article below points directly to climate change as the reason coffee prices remain high. ”
But the article says it is due to ‘Climate changes and market fundamentals…tied to the developments of the euro-zone crisis and its consequences to the global economy’ . Climate change is only a partial explanation for high prices.
So why does the headline say climate change is the reason prices are high? That seems misleading to me.
You’re a misleading person/troll, Klem. So I’m taking a couple minutes to let others know what sort of junk comments you leave anywhere someone is talking about climate change.