Even After Brazilian Drought, Trouble Ahead For Starbucks Supplier Ipanema

Ipanema Coffees, supplier to Starbucks Corp. (NYSE:SBUX), said it expects a 40 percent drop in crop yields after an historic drought in Brazil. Brazil is the world's largest coffee producer, responsible for about a third of the global supply. But a three-month drought has left farmers scrambling to recover supplies, and bean prices rising. Brazilian officials say that the weather problems are over, but not everyone is as optimistic.