About 20% of South America’s coffee harvest has been killed off by a fungus. We might get away without a massive price increase this year, but next year could be a different story according to USA Today:
Green Mountain Coffee is one of the biggest buyers of coffee in the world, purchasing some 207 million pounds in 2012. [Senior director Lindsey] Bolger said the coffee market hasn’t responded to Central American production dropping by 20% this year because Brazil, the biggest coffee grower in the world, is expected to bring in a good crop.
“I think the situation will be very different next year, because despite a bumper crop from Brazil, if coffee rust continues to be an issue, and plants in Central America are weakened, production will be down even more than 20%,” Bolger said.
Central America produces half of all arabica beans in the world, which makes me edgy for the future of my beloved coffee.