There is a predicted global coffee shortage on the horizon which could see both coffee prices rise and cafes closing.
In a recent interview with the ABC news, Giuseppe Lavazza, vice president of global coffee supplier Lavazza, said there were signs that coffee-producing nations would not be able to meet global demand for the coffee in the forthcoming future.
“There is the problem of a possible shortage,” he told 774 ABC Radio Host Jon Faine.
Giuseppe stated that climate change in particular had been affecting coffee production for some time.
“Last year we had drought in Brazil, for example, this year we had El Nino in Indonesia,” he said. “Long-term the world will need much more coffee because international coffee consumption is growing. We think that in the future if the basics are not going to change, the price of the coffee is going to increase on the international market because of this difference between the demand and the supply,” he said.
With little land left to grow coffee that is not already in use, Giuseppe said that the only way to satisfy the ever-growing worldwide demand was to improve the productivity of existing farms.
The predicted price increase of coffee beans could lead to the closure of smaller cafes as they struggle to absorb the price rise of the in demand product.