Coffee production is expected to be the biggest wave of production in America this year, as farmers and coffee roasters alike ramp up production to the tune of nearly $300 million in new acreage, according to a new study by the U.S. Coffee Research Council.
The growth of coffee production is driven by demand for coffee in China and by a surge in the coffee industry in North America.
In 2017, U.K.-based Eau Claire-based Orchard & Gate Coffee Co. forecasted it would grow coffee production by 17.5% from 2017 to 2019.
The company also projected that U.C.-Berkeley, California-based Terra Nova Coffee Co., will produce an additional 2,000 metric tons of coffee this year.
And in January, the U-C-Berkeley Coffee Research Institute forecasted that production in the U,C.-California region would reach a new record high of 2,200 metric tons this year and in 2021.
“Demand for coffee has increased in both directions in 2017,” said Jim Buell, executive director of the U.-C-California coffee research institute.
“Demand in China is at a record high, while in the United States demand has increased.
The growth in both demand and supply is in line with what we’ve seen.”
U.C. Berkeley’s Bueld says coffee consumption is expected be up 23% over the last year and is predicted to be $20 billion in 2020, according the institute.
Production in the Central Valley is expected increase by more than 30% from last year, with a forecast for a 5.3% increase in 2017.
But the increase is likely to be much lower than that, the institute predicts.
The UC-Davis Institute of Food Systems forecasts demand for U.F.O.s, coffee in cans, and coffee powder in 2020 at 7.6 million metric tons, a 6.5 percent increase over 2017.
The report also predicts that coffee production will increase by 9.5%, or 9.9 million metric pounds, in 2021 from 2021.
It is not clear how many additional farmers are expected to grow coffee in the future, but Buel says that he expects that demand for production to continue growing in the next few years.
“It’s definitely going to be a big growth year in terms of both coffee production and demand in coffee,” Buello said.
“We’ll be looking at an even bigger year than we did in 2017.”
The coffee industry is expected take a big hit from the impact of Hurricane Harvey in Texas and the Caribbean.
Buella predicts demand will continue to decline in the years ahead, as the impact from Hurricane Harvey is expected, but that demand will pick up once the storm clears.
Buello says that while it may take a few years for demand to bounce back, the industry is in good shape.
“I think it’s just the right time to have a boom in coffee, particularly in a region that has such a strong coffee culture,” he said.