Tuesday, May 17, 2011

Coffee Prices To Skyrocket: May Run Out

The biggest concern may not be the cost of coffee but whether there is any available.
Extraordinarily, there is a serious fear the world may temporarily run out of its second-most-traded commodity.
"That's a question I've asked myself many times in the past six months," Mr Reynolds said.
"That's the multi, multi, multi-trillion dollar question. Nobody can answer that."
The problem is not increased demand but poor supply.
Environmental impacts have hit crop yields - particularly in Brazil, the largest supplier - and entire crops have failed in other key areas, significantly limiting the availability of beans.
"They don't expect crop yields or the market to change until after 2013," Mr Reynolds said.
"If that's the case, we're facing a couple of pretty difficult years.
"We're seeing some of the big players trying to corner stock in from different places [to avoid running out]."

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