Sustainability is an ancient concept, but one that has been "modernized" in recent decades due to the great crisis of climate change that we are experiencing. In this century in particular, sustainability has ceased to involve a purely environmental aspect, and has been defined as the ability to coexist between the biosphere and human civilization, encompassing three large interdependent dimensions: the first social, second economic and third environmental.
Coffee has reached record prices since 2014 this week. But how does this price increase affect coffee farmers and roasters?
What is the "C" price of coffee?
The coffee commodities market, also known as the "C" Market, is where brokers at the New York Stock Exchange determine the future price of coffee contracts globally every day. By buying or selling these futures contracts, brokers place bets on the expected future value of a certain commodity. Therefore, projections about the future supply and demand of coffee will make possible multiple variations in its price in the present.
1.- The birth of a new reality.
With this article, we begin a new series of educational content, this time focusing on one of the biggest and probably most controversial topic in the coffee industry: PRICE.
All of us who work here know that our industry is in an unprecedented crisis in various fields; Ethical, Environmental, Genetics and Socioeconomic. We know that the prices we pay to coffee growers (with only few exceptions) is well below their production costs. And when we pay excellent prices for quality, for example in Kenya; we know that most of this revenue does not reach farmers, because there are so many hands, so much corruption and so much bureaucracy in the industry, that most of the benefit is lost in the darkness of a network of connections that we do not fully understand.