The global coffee crisis raises the demand for local


While coffee farmers around the world are facing the problem of drought and bad weather, which have affected the lack of productivity, especially in the Brazilian coffee market, which constitutes a third of global production by about 3.8 million tons in 2022, a number of local coffee farmers confirmed that the lack of rain for this year, caused a crisis. In the low productivity of crops, the demand for them increased, which prompted some of them not to rely on “rainfed” agriculture and resorted to the use of tanks and water sprinklers, which caused farms to another crisis in light of the high water prices.

Rely on water tanks

Gibran Muhammad Al-Maliki, who is interested in coffee cultivation in the South region, and the winner of the first place for the best local coffee farm, explained that “the lack of rain negatively affected the productivity of coffee farms that depend on rainfed agriculture, but we faced this problem in our farms by relying on water tanks.” In one month, we brought 70 tanks, the value of each of them being 500 riyals, meaning that the cost of water in one month was 35,000 riyals.”

An increase in demand versus an increase in prices

The increase in demand with the lack of supply is offset, of course, by the increase in prices, in a way in which the merchant balances the production costs and the revenues generated. This rule applies to the global and local coffee market at the present time. In light of the increased demand for Arabica coffee with the lack of supply, traders resort to raising their prices To balance production costs and revenues.

lack of height

What draws attention is the fact that the prices of Brazilian and Colombian coffee, which have been affected by climate changes, have not increased. “Al-Watan” has contacted a number of local coffee farmers, who in turn emphasized that the global coffee crisis increases the demand for local coffee, which calls for an increase in prices in a way that is balanced Between the prices of the costs of the stages of crop production and its presentation, and the returns achieved in a reasonable manner, there is no harm in it for both the trader and the consumer.

brazil frost

In Brazil, the frost, followed by a severe drought, caused the destruction of crops amid expectations that the “Lanina” climate phenomenon that would lead to lower global temperatures until early 2022, causing more damage to crops, and cannot recover. Including only after a few periods.

Colombia drought

The situation is not much different in Colombia, whose coffee crops are also facing a drought crisis, which has affected productivity, where its productivity fell last year to 6%.

As a result of that crisis, some Arabica coffee suppliers resorted to replacing it with Robusta coffee, of which Vietnam is one of its largest suppliers. However, there are concerns among coffee consumers about the high prices of coffee in light of this global crisis.

Drought and bad weather conditions affected global coffee production

Colombian and Brazilian coffee prices did not rise, but the demand for local coffee increased

Local coffee faces a crisis of lack of production

Low production due to lack of rain

Using water tanks and sprinklers to overcome the water crisis

Water prices rise to 35 thousand for 70 tanks per month

.

About the author

Leave a Reply

Your email address will not be published. Required fields are marked *