Coffee Industry: Past, Present and Future
The coffee industry has come a long way since 850 when an Ethiopian named Kaldi noticed his goat chewing red berries. Even Kaldi, a goat herder, knew from the moment he sampled the bright scarlet berries he’d found something that gave him a “lift.”
From Ethiopia to coffee producers in Columbia and Brazil in South America, the world discovered a beverage that has no competition in popularity. As a result of the demand for coffee in European countries like Italy, Germany and France, this drink became synonymous with relaxation and enjoyment. Today, coffee is enjoyed by millions across the globe. Some individuals prefer it first thing in the morning. Others choose it as an after dinner drink. The future of the coffee industry depends on supply, demand and trends of coffee drinkers.
Changes in Coffee Producers In many ways, the demand for designer coffee beans has changed the coffee industry. In the past, there were relatively few choices of coffee beans. The processes used to develop coffee flavors affect the growth of the product within the industry. Some of the world’s most expensive coffees are custom produced by relatively few coffee processors. As a result of this custom production of coffee, the trend in the coffee industry today is becoming more focused on custom brands made from designer beans, roasted in special processes.
Climate Affects the Coffee Industry For investors, the focus should be on the affect of climate change, designer coffee beans and small-scale coffee producers. Climate plays an important role in the quality of coffee beans. Typically, coffee beans do well in tropical climates where soil is dark and rich. Climate changes will affect the coffee industry if climate is not compatible with the needs of coffee growers. This is an issue coffee investors should monitor carefully.
Small Scale Coffee Producers If there is any impact felt by the coffee industry today, it is the sudden growth in the number of small-scale coffee producers. With more and more trends toward custom brand coffees, the future of the large-scale coffee industry may not be the best consideration for investors. Many of the largest coffee manufacturers in the US have dwindled down to less than a half dozen brand names of renown. The picture of investments in coffee seems to focus on choosing small-scale coffee producers with the most potential for sales of specialty coffee roasts.
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