Wednesday, April 03, 2019

Coffee Prices Under Water

I welcome this story from NPR's Planet Money journalists Sally Herships and Stacey Vanek Smith, in which they draw attention to the perilously low prices of coffee.


Image (as seen in my family's dining room)
By Oliver Ray
They rightly ask why prices paid to farmers can be so low when retail prices for coffee drinks is increasing. The answers they provide are correct, as far as they go, and include one that I had not thought of: coffee itself constitutes a shrinking proportion of what is in a typical retail cup of coffee, as concoctions involving milks, creams, sugars and syrups become more popular.


Regular readers of this space will not be surprised that as a Coffee Maven, I have several caveats:
  • The story focuses on Colombia, which is an important producer, and Brazil, which is the biggest. Production trends in these countries certainly are important. They neglect to mention Vietnam, where the World Bank has promoted high-volume, low-quality production. Its rapid move to second place about two decades ago continues to disrupt the market, while causing environmental problems and not providing much benefit to farmers in Vietnam itself.
  • At $1.08/pound, the current price in Colombia, though low, is a bit higher than the most commonly used benchmark price, which is $0.94. Readers of this blog can always find the benchmark price at the top-left of this page, courtesy of a widget from Investing.com.
  • These prices refer to the export price -- coffee as it gets placed on a ship in Colombia, Nicaragua, Ethiopia, or any producing country. Most farmers are several steps removed from this, and must work through a series of middlemen (they are always men), including unscrupulous ones known as coyotes. Unless they are involved in a fair-trade or direct-trade contract, farmers will see only a fraction of the export price.
  • Farm workers will earn even less if they do not own the farm. Harvesting coffee pays the equivalent of a nickel or so per pound.
  • Just as the piece focuses on Colombia as a producer, it also focuses on a single retailer: Starbucks. It is indeed important, but in many ways not representative of the retail side of the industry.
  • And finally, a small mistake that is often made. The story references the New York Stock Exchange, which facilitates public trade in equities (stocks) that constitute corporations. Coffee is traded on the New York Coffee Exchange, also known as the C Market. The operation of this market is explained in the very important film Black Gold, which I mention in various contexts throughout many posts on this blog.
Still, this story is an important one, and I am very glad to hear it told to an audience beyond my small orbit. Please scroll up and give a listen!

And always remember: #thankthefarmers

No comments:

Post a Comment

Thanks for your comment and your interest in my blog. I will approve your comment as soon as possible. I had to activate comment moderation because of commercial spam; I welcome debate of any ideas I present, but this will not be a platform for dubious commercial messages.

Blog Ideas

coffee (22) geography (16) climate change (15) GEOG381 (12) musica (10) GEOG388 (9) Mexico (8) Texas (8) education (8) Brazil (7) migration (7) GEOG332 (6) Massachusetts (6) US-Mexico (6) borderlands (6) deBlij04 (6) GEOG130 (5) GEOG470 (5) cultural geography (5) fair trade (5) food (5) geographic education (5) immigration (5) nicaragua (5) Arizona (4) Safina (4) climate justice (4) deBlij05 (4) music (4) politics (4) water (4) Bolivia (3) Boston (3) GEOG431 (3) Managua (3) Obama (3) africa (3) border (3) cartography (3) drought (3) libraries (3) pesticides (3) trade (3) unemployment (3) Alaska (2) Amazon (2) Bridgewater (2) Canada (2) Chiapas (2) China (2) Colonialism (2) EarthView (2) Economy (2) Environment (2) Ethiopia (2) GEOG 381 (2) GEOG295 (2) GEOG298 (2) GEOG331 (2) GEOG441 (2) Google Maps (2) Government (2) Hawaii (2) India (2) Lexington (2) Maldives (2) Mozambique (2) NPR (2) National Monuments (2) National Parks (2) Religion (2) Rio Grande (2) Taunton River Wild and Scenic (2) Tex-Mex (2) The View from Lazy Point (2) United States (2) Venezuela (2) anthropocene (2) censorship (2) central america (2) chocolate (2) corn (2) deBlij07 (2) deforestation (2) demographic transition (2) education reform (2) employment (2) environmental geography (2) film (2) global warming (2) islands (2) land protection (2) librarians (2) maps (2) organic (2) peak oil (2) refugees (2) sense of place (2) soccer (2) suburban sprawl (2) television (2) water rights (2) whales (2) #sosnicaragua #nicaragua (1) ACROSS Lexington (1) Accents (1) Adam at Home (1) Alice (1) Alt.Latina (1) American Hustle (1) April (1) Association of american Geographers (1) Audubon (1) Aunt Hatch's Lane (1) BSU (1) Baby Boomers (1) Banda Aceh (1) Bay Circuit Trial (1) Bechtel (1) Beleza Tropical (1) Belize (1) Beloit College (1) Ben Linder Cafe (1) Bet The Farm (1) Bhopal (1) Bikeway (1) Bill Gates (1) Bill Moyers (1) Boeing 777 (1) Brazilian (1) Brazilianization (1) Bridge (1) British Columbia (1) Bus Fare (1) Bush (1) California (1) Cambridge (1) Cape Cod Bay (1) Carl Stafina (1) Catholic (1) Ceuta (1) Chalice (1) Chipko (1) Citgo (1) Climate risks (1) Cochabamba (1) Common Core (1) Commuter (1) Computers (1) Cuba (1) Cups and Summits (1) Dallas (1) David Byrne (1) Deans Beans (1) Delaware Valley (1) Dunkin Donuts (1) EPA (1) Earth Day (1) Earth View (1) Easton (1) Elizabeth Warren (1) Ellicott City (1) Emilia Laime (1) English-only (1) Environmental History (1) Euphrates (1) European Union (1) Evo Morales (1) FIFA (1) Fades Out (1) Farms (1) Food Trade (1) Frederick Kaufman (1) French press (1) Fresh Pond Mall (1) GEOG 171 (1) GEOG 332 (1) GEOG 441 (1) GEOG171 (1) GEOG286 (1) GEOG490 (1) Garden of Gethsemane (1) Gas wells (1) General Motors (1) Gini Coefficient (1) Girl in the Cafe (1) Google (1) Gordon Hempton (1) Gravina Island Bridge (1) Great Molasses Flood (1) Guy Lombardo (1) Hawks (1) Heart (1) Higher Education (1) History (1) Holyhok Lewisville (1) Homogenous (1) How Food Stopped Being Food (1) Hugo Chavez (1) IMF (1) Iditarod (1) Imperial Valley (1) Income Inequality (1) Indonesia (1) Iraq (1) Irish (1) Japan (1) Junot Diaz (1) Ketchikan (1) Key West (1) Kindergarden Students (1) King Corn (1) Kiribati (1) Latin America (1) Limbaugh (1) Louisiana (1) Love Canal (1) Luddite (1) M*A*S*H (1) MCAS (1) MacArthur Genius (1) Maersk (1) Malaysia (1) Malaysian Air Flight 370 (1) Manu Chao (1) Map (1) Marblehead (1) Mary Robinson Foundation (1) Maryland (1) Massachusetts Bay Colony (1) Math (1) Maxguide (1) May (1) Maya (1) Mayan (1) Mayan Gold (1) Mbala (1) McDonald's (1) Melilla (1) Mexicans (1) Michael Pollan (1) Michelle Obama (1) Micronesia (1) Military (1) Military Dictatorship (1) Minuteman Trail (1) Mongolia (1) Monsanto (1) Montana (1) Morocco (1) Mount Auburn Cemetery (1) Muslim (1) Nantucket (1) National Education Regime (1) Native Americans (1) New Bedford (1) New Hampshire (1) New York City (1) New York Times (1) No Child Left Behind Act (1) Norquist (1) North Africa (1) Nuts (1) Oaxaca (1) Occupeligo (1) Occypy (1) Oklahoma City (1) Oppression (1) PARCC (1) Pakistan (1) Pascal's Wager (1) Peanut (1) Pearson Regime (1) Philadelphia (1) Philippines (1) Pink Unicorns (1) Poland (1) Portuguese (1) Protest (1) Public Education (1) Puebla (1) Puritans (1) Quest University (1) Rachel Carson (1) Reading (1) Republican (1) Retro Report (1) Robert Reich (1) Rock Legend (1) Ronald Reagan (1) Rondonia (1) SEXCoffee (1) Safety (1) Samoza (1) Sandino (1) Sara Vowell (1) Save the Children (1) Scotch (1) Scotland (1) Seinfeld (1) Senegal (1) Sergio Mendes (1) Severin (1) Sharrod (1) Silent Spring (1) Sinatra (1) Slope (1) Somalia (1) Sombra (1) Sonora (1) Sonoran desert (1) Sonoran hot dog (1) South America (1) Spain (1) Stairway to Heaven (1) Storm (1) Suare Inch of Silence (1) Sumatra (1) Swamp (1) Tacloban (1) The Amazon (1) The Amazon Trail (1) Tigris (1) Tucson (1) Tufts (1) U.S Federal Reserve (1) U.S Government (1) U.S. economy (1) USDA (1) USLE Formula (1) Uganda (1) Unfamiliar Fishes (1) Union Carbide (1) Vacation (1) Vexillology (1) Vietnam (1) ViralNova (1) WNYC Data News (1) Wall Street (1) Walsenburg (1) Walt Disney (1) Walt and El Grupo (1) Ward's Berry Farm (1) West (1) Whaling (1) Wilson (1) Winter Storm Saturn (1) Wisconsin (1) World Bank (1) Xingu (1) YouTube (1) Zombies (1) agriculture (1) antitrust (1) aspen (1) austerity (1) aviation (1) banned books (1) bark beetle (1) bean (1) bicycle (1) bicycling (1) bike sharing (1) binary (1) biodiversity (1) bioneers (1) books (1) boston globe (1) cacao (1) cafe (1) campaign (1) campus (1) cantonville (1) cape verde (1) capitals (1) carbon dioxide (1) carbon offsets (1) carioca (1) cash (1) cashews (1) census (1) chemex (1) chemistry (1) chronology (1) churrasco (1) coffee grounds (1) coffee hell (1) coffee prices (1) college (1) compost (1) computerized test (1) congress (1) conservation commission (1) corporations (1) countries (1) cubicle (1) dams (1) deBlij06 (1) deBlij08 (1) death (1) deficit (1) demography (1) dictatorship (1) distracted learning (1) distraction (1) drug war (1) dtm (1) earth (1) economic diversification (1) economic geography (1) election (1) embargo (1) energy (1) enhanced greenhouse effect (1) environmentalist (1) ethnomusicology (1) exremism (1) failed states (1) farming (1) financial crisis (1) football (1) forest fire (1) forestry (1) forro (1) fracking (1) free market (1) free trade (1) fuel economy (1) garden (1) genocide (1) geography education (1) geography games (1) geography of chocolate (1) geography of food (1) geologic time (1) geotechnology (1) gerrymandering (1) global pizza (1) globe (1) green chemistry (1) guacamole (1) guatemala (1) high-frutcose (1) home values (1) hospitality (1) hourglass (1) housing (1) illegal aliens (1) income (1) interfaith (1) journalism (1) kitchen garden (1) labor (1) landscape ecology (1) language (1) libertarianism (1) library (1) lingusitics (1) little rock (1) llorona; musica (1) maple syrup (1) mapping (1) masa no mas (1) medical (1) mental maps (1) mi nina (1) microstates (1) mining (1) monopoly (1) municipal government (1) nautical (1) neoclassical economics (1) new england (1) newseum (1) newspapers (1) noise pollution (1) pandas (1) petroleum (1) piracy (1) pirates (1) poison ivy (1) police (1) political geography (1) provincial government (1) proxy variables (1) public diplomacy (1) quesadilla (1) rabbi (1) racism (1) real food cafe (1) remittances (1) resistance (1) respect (1) rigoberta menchu (1) rios montt (1) romance (1) roya (1) runways (1) russia (1) satellites (1) science (1) sea level (1) selva negra (1) sertao (1) sert√£o (1) sex (1) sex and coffee (1) simple (1) sin (1) smokey (1) solar (1) solar roasting (1) south africa (1) sovereignty (1) species loss (1) sporcle (1) sports (1) state government (1) sustainability (1) taxes (1) tea party (1) teaching (1) textile (1) texting (1) tortilla (1) training (1) transect; Mercator (1) travel (1) triple-deckers (1) tsunami (1) utopia (1) vermont (1) vice (1) video (1) wall (1) water resources (1) water vapor (1) whiskey (1) whisky (1) widget (1) wifi (1) wild fire (1) wildfire (1) wildlife corridor (1) wto (1)