If there is one thing you can always count on it is that geeks love their coffee, Starbucks has made a fortune from them; and hipsters, but they don’t count.
However 2015 may be the year that you see geeks around the world cringing in the corner and they are either in the shakes over not being able to get any coffee, or shaking at the amount of the bank loan they need to take out to buy that morning Starbucks fix.
All this terror that may well develop is due to the fact that Brazil, the largest coffee bean producer in the world, is suffering from a severe drought that is only looking worse as the year continues. It is bad enough that 2015 could very well see the lowest supplies of Brazilian coffee beans in the last 50 years.
With damage worsening before the start of spring in the Southern Hemisphere, Brazil’s National Coffee Council has estimated that farmers may collect less than 40 million bags in 2015, creating the longest output slump in five decades. Starbucks Corp. and J.M. Smucker Co. raised retail prices this year after futures surged 61 percent in the first quarter.
Of course this news doesn’t mean that supplies of coffee will disappear, but you can be pretty sure that the cost of that morning coffee is going to see a dramatic rise in prices, how much still remains to be seen.