4 ms·
Economists - where am I going wrong? I'm not an economist by occupation, but this looks like bad news for the growers in that region, because they have less to
by tokenadult 14y ago
Economists - where am I going wrong?
I'm not an economist by occupation, but this looks like bad news for the growers in that region, because they have less to sell, but the price of coffee is influenced mostly by worldwide supply, which will not soon be influenced just by that regional fall in production. This is the same issue that my uncles who are farmers face. It would seem "logical" that if their production falls because of bad weather, they would make that up in higher price per bushel of grain, but the market price of their grain is very little influenced by the average yields per acre in their regions of the United States.
From the article: "Colombia could be the closest to a solution. Marco Aurelio Cristancho, a researcher at Cenicafé, the National Centre for the Investigation of Coffee in Chinchiná, says that the government has supported research into developing resistant strains of coffee through crossbreeding. The introduction of resistant strains, together with improved weather monitoring to help predict rust outbreaks, has meant that fewer than 10% of plants now need to be treated with fungicide, down from 60% four years ago, Cristancho says. The government has also supported work on the genetics of both the fungus and the plant." So it is precisely that regional difference in severity of the worldwide problem of coffee rust that allows some producing regions with normal yields to keep the global price of coffee roughly steady even while other producing regions face severe reductions in yield.
- sjg007 14y agoAlso don't buy organic coffee..