Drought causes Brazilian coffee to suffer the biggest loss in 50 years
The state of Sao Paulo, an important agricultural producing area in Brazil, is likely to suffer the biggest losses in 50 years this year after the worst drought in 80 years, the Institute of Agricultural Economics of Sao Paulo said a few days ago.
According to statistics, the average rainfall in some major agricultural areas in Sao Paulo state in October was only 26 millimeters, far below the normal level of 120 millimeters. High temperatures and droughts have directly affected the growth and harvest of coffee, sugar cane, corn, soybeans and other crops in Sao Paulo, causing millions of reais to the state's agriculture.
Coffee and sugar cane are the two crops most affected by drought. In the case of coffee, for example, drought caused the harvested coffee beans to become smaller and irregular in shape, while those grown in 2012 and 2013 had almost no harvest.
According to the analysis of the Institute of Agricultural Economics, although soybean production in Sao Paulo has been reduced, the overall supply of soybeans will not be affected because the output of other states can make up for this loss. But sustained climate change could seriously damage Brazilian agriculture in the future. The Brazilian Institute for Climate change predicts that Brazil's agricultural production will lose 7 billion reais (about US $2.7 billion) by 2020 due to drought, and 10 per cent of Brazil's crop-growing areas will disappear due to climate impacts by 2050.
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China's coffee market is expected to reach 300 billion yuan in 2020.
In recent years, more and more Chinese people begin to taste western drinks on the tip of their tongue. On November 10th, foreign media reported that senior officials at Volcafe, the coffee division of British commodities trader EDF Man, said that China's annual coffee production would double in the next five years, and that production might increase again if there was sufficient demand and prices could make farmers profitable. This year's nationwide shopping
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The reduction in overseas production has led to a big increase in exports. Yunnan Coffee and beans are soaring in quantity and price.
Affected by extreme weather, the global supply and demand of coffee beans, the raw material of coffee, has been challenged this year. Multi-party data show that due to the main producing areas of coffee beans, such as Brazil, affected by drought, diseases and insect pests and other factors, coffee bean production has dropped sharply this year, resulting in coffee beans in short supply and prices showing an upward trend. At present, it has also entered the picking season of domestic coffee beans. Yesterday (November 25), coffee in Yunnan Province
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