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Coffee growers prepare for a rebound in prices

Monday, March 19, 2012

Coffee producers in the heart of Costa Rica's Naranjo region that grows top-notch beans learned a tough lesson in 2001, the last time prices sank: Even gourmet coffee can leave a bitter taste. This time, they are better prepared.

The efforts of some Latin American farmers to lessen their reliance on coffee has pinched supplies of high-end arabica, which undergoes a rigorous and labor-intensive washing process, even as global demand has increased. Consumers in emerging markets are thronging coffee shops in increasing numbers.

Without a sustained increase in output from Latin America, the biggest source of these sought-after coffee beans, a shortfall could develop, setting the stage for a rebound in prices over the longer term, analysts say.

Source: Wall Street Journal