As I sit here writing this piece on how coffee fell to the bottom of its pricing cycle, recovered by over 36% in one month and then turned lower, I am sipping on a hot cup of the beverage that so many of us drink because of the flavor and magical powers of caffeine. Coffee is a staple for me, and many others around the world each day. Coffee is also the hub of many social and business activities as the beverage has a long history as a centerpiece at meetings and gatherings. In the morning, many of us start our day with a cup of Java, and after a big meal in the evening, a cup of the beverage with dessert is the perfect end to a meal.
When I first traveled to Asia in the 1980s, tea was the predominant beverage, but these days thanks to coffee shops that have popped up all over the region and in China, coffee is taking some market share away from tea. At the same time, population growth around the globe that has exploded from six billion in 2000 to over 7.5 billion in 2018, demand for the beverage continues to rise.
Like all agricultural commodities, the weather in the primary growing regions around the world determines the price of coffee each year. The annual crop can also suffer from crop diseases like leaf rust, and an outbreak can quickly wipe out supplies.