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Climate change may affect coffee prices

Whether you take it black or with cream and sugar, your morning cup of coffee is probably one of the first things on your mind when you wake up.
But as Isa Soares explains, climate change could cause the price tag on you favorite brew to go up.

It's strong enough to give you a jolt and keep you wired for the rest of the morning.
But at this coffee exhibition in London, little do these customers know there may be a storm brewing in their coffee cup.

According to the Intergovernmental panel on climate change, or the IPCC, pests, rising heat and extreme temperatures resulting from climate change may impact the supply of coffee and the industry is worried.

I am very concerned. I would say climate change is the most serious threat to the sustainability of the coffee supply chain right now.
Because if we don't take action, if we don't prepare and give the resources to our farmers, to adapt to the change in circumstances we will not have quality in the coffee and quantity needed.

The IPCC says that a temperature rise of 2 to 2.5 centigrades means some coffee growing countries could run out of cool mountainsides in which to grow their coffee by 2050.

It also predicts that by 2020, coffee production could decline by 34%.
With profits shrinking from $200 per acre to less than $20 per acre.

Standup in Brazil for example, the biggest producer of coffee and Arabic coffee, rising temperatures could cut the area suitable for coffee production by two-thirds.
And that means that Brazil would need to look beyond their principal growing areas of Minas Gerais and Sao Paulo for their coffee. More importantly, that would impact millions of workers.

We're talking about at least 35 million farmers and this means that if you think about their families, it's probably 100 million people.

It's a vast, vast number of people who depend directly on coffee as their number one source of cash.
But whilst this may prove challenging and devastating for many coffee growing countries. It can also be an opportunity for others.

Vietnam for example has become a much much bigger player and is now the largest exporter of coffee, producer of coffee worldwide now, after Brazil.
India is now developing its own coffee industry as is China.

A dramatic change of landscape for an industry that for years has depended on Brazil among others for their economic coffee fix.