The price of coffee can be a moving target. For local producers, considerations include everything from weather conditions to the state of the coffee borer beetle. But in some parts of Asia, the key factor this year is rain—or the lack of it. HPR’s Bill Dorman has more in today’s Asia Minute.
The rains have returned to Vietnam this week….very heavy rain in parts of the country. For Vietnam’s coffee farmers, the seasonal rains are welcome—but they may be too late to save a lot of the crop. Reuters says nearly 20% of the country’s coffee plants may be lost this year because of the driest weather in at least three decades.
The El Nino weather system is to blame…and parts of Vietnam have been experiencing their worst drought in 90 years. Some farmers are telling local reporters they plan to abandon coffee and instead focus on a more lucrative crop: black pepper. And while the weather may affect the prices of certain coffee beans, it may not hit your local coffee shop of choice.
That’s because Vietnam is the world’s largest producer of Robusta beans—which generally go into instant coffee. India also grows Robusta beans….and its coffee-growing region is also crippled by drought this season.
Gourmet and espresso coffee more frequently use Arabica beans…which means exports from Brazil. And despite its troubles with everything from political leadership to preparations for the Olympics, at least Brazil is having a bumper year when it comes to its coffee crop.