Coffee Supplies

What affects the supply of Coffee?

What are the determinants of supply for coffee?

First and foremost, it’s weather. This is true of all crops. When the weather is good, the yield is bountiful, and when the weather is bad, it’s bad.

In any given country, the supply curve of coffee is also determined by trade agreements and tariffs. The US doesn’t grow coffee, it imports it. So if it has low import tariffs on coffee with Colombia, then this will have a beneficial affect on the supply of coffee.

Market prices also have almost no impact on the supply of coffee. Because of the global nature of unroasted coffee purchasing and the fact that coffee growing lands cannot easily support other types of crops, coffee growers have less control over the coffee market. So their ability to change the supply of coffee due to market prices and/or conditions is pretty much zero.

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