Coffee shortage brews higher prices
The price of coffee in Australia is expected to rise for at least the next two years, one of Brazils leading coffee bean producers says.
Brazil is the worlds leading producer of coffee but an ongoing drought and a downturn in its biennial crop cycle has led to a steep decline in production.
This has been made worse by a severe drought in Vietnam, the other major grower of coffee beans.
There are also significantly more people drinking coffee.
Stocks are so low the International Coffee Organisation predicts an 8 per cent shortfall this year.
Top Brazilian producer, Ipanema Coffees, says it is inevitable retail prices will continue to go up as a result.
The company says it does not expect prices in Australia and worldwide to stabilise for at least two to three years.
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