Part 6/13:
2023 marks the first year in eight that Indonesia’s coffee output is expected to decline. The El Niño phenomenon, characterized by long stretches of drought and high temperatures, jeopardizes coffee crops across the globe. With Indonesia’s coffee production already under pressure, this weather pattern risks exacerbating shortages.
Moreover, the global demand for coffee continues to grow. The World Coffee Organization projects that worldwide consumption will increase by 1.7% in 2023, further straining the supply chain. As a result, industry insiders warn of a looming shortfall, with an estimated deficit of 7.3 million bags of coffee globally.