Global Coffee Trade Slows Down

Recently, global coffee production and market dynamics have been affected by a variety of factors

Brazil coffee production affected by drought

As a major coffee producer in the world, Brazil has recently experienced dry weather that has severely affected coffee production, causing global coffee prices to hit a new high. ​Some farmers have begun to adopt expensive irrigation systems to ensure crop yields in response to this challenge. ​For example, farmers are expected to have a good harvest through efficient irrigation systems. ​However, coffee farms that traditionally rely on natural rainfall are facing the dilemma of reduced production. ​

Global coffee trade slows down

Global coffee trade shows signs of slowing down due to soaring prices. ​Some market analysts predict that Arabica coffee futures prices may fall by 30% by the end of 2025 as high prices suppress demand while Brazil is expected to have a good harvest. ​
Reuters

The impact of climate change on coffee production

Adverse weather conditions caused by climate change, such as droughts and abnormal weather patterns, are disrupting coffee production, affecting yields and quality. ​This has prompted the industry to explore climate-resilient agricultural practices and coffee varieties to meet these challenges.​

Overall, recent climate change and market volatility have had a significant impact on global coffee production and trade, and relevant parties need to pay close attention and take appropriate measures to address these challenges.

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