Brazil coffee prices surge amid worst cold snap in nearly 30 years

LONDON, Aug 6 - Arabica coffee prices have surged to the highest level in almost seven years since severe frosts damaged crops in top producer Brazil.

Brownish spots have stained large areas of coffee fields in the south of Minas Gerais, a sign that the worst cold snap in nearly 30 years will hurt production for at least the next two crops.

Why do FROSTS POSE A THREAT TO COFFEE?

After the introduction of coffee trees to Brazil in 18th century, frost has posed a threat to coffee trees.

Major producing states in Brazil, such as Minas Gerais, are more frost prone than growing regions in other major Arabica coffee producing countries like Colombia and Ethiopia.

Coffee is a tropical crop and doesn't like low temperatures, particularly when they dip below 5 degrees Celsius. Sub-zero temperatures, between - 3 C to - 4 C are lethal, destroying fruit buds, flowers and fruits and causing frost burn on leaves, which in severe cases leads to the complete defoliation of the coffee tree. The severest form of damage is due to the formation of ice crystals, which puncture the cells within affected plant parts, causing them to turn black and die, ultimately leading to the death of the plant.

Dr Aaron Davis, who conducts research into coffee at the Royal Botanic Gardens in Kew in Britain, said frost can be particularly devastating after a long period of drought, such as experienced this season, as leaves could have wilted already, making them susceptible to low temperatures and frost.

In some cases, it can take one or two years to recover from a frost event but if the coffee trees die and have to be replaced by seedlings it can take four or five years to get a decent crop and up to seven years to bring maximum production levels to life.

Is the River Rio Vulnerable? If yes why?

Research conducted by Refinitiv comparing temperatures and precipitation in the period 1959-1988 with 1989-2018 shows that Brazil's climate is on average wetter and warmer.

Extreme cold events become less common, but extreme heat is becoming more frequent.

The most recent severe frost was in 1994 and there was the devastating combination of drought and frost in that case as well.