· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on CNN or enjoy below:
🗞️ Driving the news: Coffee prices are surging due to climate change and other factors, with both Arabica and Robusta varieties affected
• The International Coffee Organization reported that the ICO Composite Indicator Price reached a 13-year high, driven by adverse weather and market dynamics
🔭 The context: The coffee industry is highly sensitive to climate fluctuations, particularly in major producing regions like Brazil and Vietnam
• Severe weather events, such as frost and drought, have reduced coffee yields, while global supply chain issues and rising production costs have further strained the market
🌍 Why it matters for the planet: Climate change is a key driver behind the increased cost and decreased availability of coffee
• As global temperatures rise and weather patterns become more unpredictable, the stability of coffee production—and thus global supply—is threatened, exacerbating market volatility and price increases
⏭️ What's next: While companies like Starbucks mitigate price spikes through fixed-price contracts, continued climate pressures suggest long-term price increases are likely
• Experts warn that the cost of coffee may continue to rise, making it more of a luxury item
💬 One quote: “There’s a drum beat in the background that is climate change, and that is causing problems.” — Neil Rosser, Bison Luxley Commodities
📈 One stat: The ICO Composite Indicator Price hit an average of $2.27 per pound, a 13-year high
Click for more news covering the latest on climate change and agriculture
