The drop in the price of coffee beans and a bumper harvest of coffee beans is not a good thing.

Professional coffee knowledge exchange more coffee bean information please follow the coffee workshop (Wechat official account cafe_style)

The reason for the decline in the price of coffee beans is related to the bumper harvest of several major coffee bean producers in the world, such as Brazil and Vietnam, resulting in overproduction of coffee beans in the market and prices falling all the way.

In addition, Brazil's currency, the real, is depreciating. At present, the real is low, and the real is down 60% against the dollar since 2011. In the past year alone, the real has fallen 12 per cent against the dollar. The devaluation of the currency has also prompted farmers to plant more, produce more and export more, so as to ensure that they can get the same income as before.

In the face of falling coffee prices, Global Coffee Report noted that the agricultural sectors of Brazil and Colombia had met on June 14 to discuss how to deal with the crisis.

The price of coffee beans has fallen below the cost of production, leaving growers at a loss and endangering the future supply of coffee. The National Federation of Coffee growers of Colombia noted that while there was ongoing dialogue among countries and the World Coffee producers Forum, the response from other parts of the industry chain was not satisfactory.

At the same time, some analysts pointed out that the price of coffee beans may not continue to fall. Because Brazil's coffee bean production next year will be in a "low yield" year (Brazil coffee bean production is usually more than a year, less than a year), and the market demand will not decrease.

Planting cost is on the high side

Coffee prices can not go up, planting costs can not come down, coffee farmers are miserable.

In the cultivation of coffee beans, there has always been a difficulty, that is, the problem of leaf rust of coffee trees. Once the coffee trees get sick, the once luxuriant coffee trees will become desolate in a very short time. Since the 1970s, this plant wilt has been the most feared and worried problem for coffee farmers in El Salvador.

Elizabeth G.Dunn, an American journalist who specializes in food research, once published an article on the Medium platform, pointing out that coffee is one of the least genetically diverse and therefore least resistant modern crops.

The rapid spread of leaf rust has not only brought huge losses to individual coffee farmers, but also greatly shaken the global coffee industry chain worth 175 billion US dollars. In the past, coffee farmers in Latin America only had to spray fungicides twice a year, but now they have to spray fungicides on their crops five to six times, and the cost is increasing.

Therefore, if the price of coffee beans is not raised, fewer and fewer people are willing to plant coffee beans again.

Elizabeth G.Dunn suggested that under the price fluctuations in the coffee commodity market, coffee brands should first protect the basic interests of coffee farmers. Establish a fairer trading mechanism

END