Coffee Supplies May Drop on Low Farm Earnings

International coffee growers are warning less coffee supplies may be in the future as coffee farmers are earning very little globally.   The International Coffee Organization this week said farmers’ low earnings in many countries were depressing supply even as demand grows around 2% annually, according to Reuters.

Rabobank last month forecast a 2017-18 global coffee deficit of 6.1 million bags amid rising demand, and signs of tightening supplies that are evident in top coffee grower Brazil, where inventories have dropped sharply.

Investing in new coffee trees requires a long-term commitment, one that farmers with low profits are having to carefully consider, leaving global supplies in jeopardy.  Coffee is primarily grown in Brazil, Vietnam, Colombia, Indonesia and Ethiopia.

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