Coffee review

The drought in Brazil did not cause a shortage of coffee beans.

Published: 2024-06-03 Author: World Gafei
Last Updated: 2024/06/03, Starbucks, the world's largest coffee chain, said that even though drought and disease hampered crops, bean prices in Latin America were still close to 2012 highs and there was no shortage of beans, Reuters reported. By 2015, Starbucks still needs to buy 1/3 of its coffee, Chief Financial Officer Scott said in a conference call on the fourth quarter and 2014 results.

Starbucks, the world's largest coffee chain, said that even though drought and disease hampered crops, bean prices in Latin America were still close to 2012 highs and there was no shortage of beans, Reuters reported.

"by 2015, Starbucks still needs to buy 1/3 of its coffee," Scott, chief financial officer, told analysts on a conference call on fourth-quarter and full-year 2014 results. "We don't see the dynamics of electricity supply and basic market shortages, including Brazilian supplies."

In 2014, the crop in Brazil, the world's largest coffee producer, is facing an unprecedented drought. This has led to wild swings in small-grain coffee KCC1 trading, doubling to a 26-month peak in the past three months. Prices soared again to $2.2550 a pound in September, the highest since January 2012.

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