“In the middle of difficulty lies opportunity" - Albert Einstein
In August of the year 2018, the price of coffee reached levels considered alarming by the majority of those who work in the coffee industry. For the first time in 12 years, the "C" price in New York fell below 100cts/lb. While it is true, the average price of the last 12 years is not much higher than 120cts/lb, this decline generated unprecedented reactions in the specialty coffee world, which we think is positive.
Historically, the price of coffee has been extremely volatile, due to the never ending discrepancies between supply and demand. But these constant cycles of highs and lows, have devastating effects for producers and coffee workers from around the world. Of course, in the United States this crisis goes virtually unnoticed, where the global coffee market is dominated by few multinationals: Kraft General Foods, Nestle, Procter & Gamble, Sara Lee, J.M. Smucker Company, Starbucks Corporation and Dunkin’ Donuts.
Historically, the price of coffee has been extremely volatile, due to the never ending discrepancies between supply and demand. But these constant cycles of highs and lows, have devastating effects for producers and coffee workers from around the world. Of course, in the United States this crisis goes virtually unnoticed, where the global coffee market is dominated by few multinationals: Kraft General Foods, Nestle, Procter & Gamble, Sara Lee, J.M. Smucker Company, Starbucks Corporation and Dunkin’ Donuts.
Globally, coffee is a US $ 100 billion business annually (Business Insider 2018), but producing countries only capture US $ 20 billion of this value, with most of the profits being retained in developed countries. As on the supply side, the coffee world is very fragmented, with millions of small-scale coffee farmers, the power of the business lies in the large importers and roasters, who buy the green beans and process them into various products.
But what would happen: if small coffee farmers knew exactly how much their product is worth? If they could calculate their production, logistics and marketing costs? And if they could obtain a price that promotes the quality and sustainability of their production?
But what would happen: if small coffee farmers knew exactly how much their product is worth? If they could calculate their production, logistics and marketing costs? And if they could obtain a price that promotes the quality and sustainability of their production?
We strongly believe that the key to unlock this crisis, does not lie on the same companies that have controlled the business for centuries, but it is at the origin. It should not be New York, London or Berlin, who decides what is the "fair price" that a coffee farmer must obtain. But it must be the coffee farmer, informed and empowered, who demand the price that he deems appropriate, according to the quality he obtained and the investment he made.
We have an invaluable opportunity in the young and new generations of coffee growers, with unlimited access to online information, eager to learn and with a global mind set. There is where we must aim all our efforts to improve this reality.
Let's make this a sustainable business for everyone and enjoy your specialty coffee!
We have an invaluable opportunity in the young and new generations of coffee growers, with unlimited access to online information, eager to learn and with a global mind set. There is where we must aim all our efforts to improve this reality.
Let's make this a sustainable business for everyone and enjoy your specialty coffee!
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