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Drought In BrazilBrazil, the world's largest coffee producer, had the worst drought in decades, leading to the michael kors handbags biggest rise since 2000 in the price of Arabica coffee beans. This month, the price of Brazil's Arabica beans rose to its highest point in two years, at $2.07 per pound. The International Coffee Organization (comprising producers, importers and exporters) has warned that Brazil's coffee crop could possibly be affected for years to come. As this was one of Brazil's driest summers on record, fears are rising that supplies will be restricted in the coming months. The country produces around a third of the world's coffee. Arabica coffee futures, which track price expectations, have increased from $1.14 per pound to $1.70 in the last month, and are up 21% this michael michael mchael kors original satchel logo monogram black purse sale kors jet set chain shoulder tote bag week.
Thirty five percent to forty five percent of the coffee crop is anticipated to be lost in the South Minas region of Brazil due to its hot michael kors classy bedford weather; however, the full extent of the damage is still not known. Minas Gerais is the fourth most extensive state of the country and the main producer of coffee, providing about half of Brazil's coffee. Chart 1 displays the location of Minas Gerais.
Fortunately, Brazil's coffee industry reports they have enough of a surplus to mitigate the impact on the market. However, worldwide consumption of coffee continues to increase. An initial estimate of total consumption in 2013 suggests a momentous 2.7% increase to 145.8 million bags, which is up from 142 million bags in 2012. The average annual growth rate over the past four years is 2.1%.
Traditional markets, particularly the United States, which have provisionally recorded strong increases in consumption compared to 2012, account for much of this growth in 2013. Prices have also michael kors rose gold astor tote $139 escalated amidst mounting demand in China, the world's second largest economy, which is drinking less green tea and developing a taste for coffee. The International Coffee Organization's monthly coffee market report states, "It seems likely that the market is heading towards a supply deficit."
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