Rising Coffee Prices Fueled by Climate Change and Trade Tariffs

Quick Summary

• Copper cow Coffee,founded by Debbie Wei mullin,aims to bring Vietnamese coffee mainstream,utilizing robusta beans considered earthier and undervalued compared to arabica.
• Mullin’s company invested in organic certification for Vietnamese farms, creating Vietnam’s first organic specialty-grade coffee farms.
• Teh Trump governance imposed a 46% tariff on Vietnam goods in April but later reduced it to 20%.A global 10% tax affects all imports currently.
• Potential tariffs of up to 50% are planned for Brazil starting August 1; these could drastically impact the U.S.’s coffee supply as Brazil contributes over a third of unroasted beans.
• Climate change has already hampered yields in key coffee-producing countries like Brazil and Vietnam due to droughts. Global prices for coffee have hit record highs.
• Environmental uncertainty has led companies like copper Cow Coffee and others to explore more climate-resilient varieties such as liberica beans while cutting costs elsewhere.

Indian Opinion analysis

The combination of economic policy (e.g., tariffs) and environmental disruptions is a important challenge for the global coffee trade. For India, which primarily consumes tea but increasingly embraces specialty coffees among urban populations, these developments may indirectly influence market dynamics such as pricing or sourcing options. India’s own robusta production could benefit from changing demand patterns if import-dependent nations seek alternatives during times of rising tariffs on Brazilian or Vietnamese supply chains.

Additionally, India’s conventional small-scale agricultural model mirrors concerns raised about smaller farming operations across Latin America impacted by volatile export conditions. This scenario underscores the potential importance for india’s government and industry stakeholders to proactively pursue sustainability measures while bolstering domestic resilience against similar climate-related challenges affecting agriculture globally.

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