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Stock impact report

Why the World's Top Coffee Producer is Switching Up Its Beans [Yahoo! Finance Canada]

StoneX Group Inc. (SNEX) 
For Brazil, robusta provides an opportunity to remain the world's largest coffee supplier in the future even as the effects of climate change intensify, says Fernando Maximiliano, Coffee Market Intelligence Manager at StoneX, a financial services company. “It wasn't necessarily demand that resulted in the growth of robusta production,” he adds. “In reality, climate problems and losses in arabica were the main factors that contributed to stimulating robusta growth.” For the past three years, arabica coffee production in Brazil has grown at a rate of around 2% to 2.5% annually, while robusta production has risen about 4.8% annually. This year's growing season, robusta hit a nearly 22% increase, a record harvest, according to StoneX. This means that robusta production has stood out for its ability to better cope with more adverse weather conditions and also for its profitability, analysts say. In warmer areas of Brazil where arabica can't grow, coffee producers are finding ways to Show less Read more
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