Can We Tame The Coffee C Market? – Warm espressos. The Americano cups are excellent. But, The story of the price of coffee is hot all over the continent. So can we tame the Coffee C market?
In Colombia, one of the world’s coffee capitals, much of the arable land once home to coffee gradually transferred to banana gardens. Ramon Elias, a farmer in the area, said that in recent times more than half of the land for coffee cultivation had been switched to butter, lemon, sugarcane, bananas, or even marijuana or coca.
The price for 12.5 kg of coffee beans the farmer is paid is $ 22. While the cost to produce is from $19-21. Can farmers only make a profit? Or there’s no consensus here.
On April 24, Oscar Gutierrez, the executive director of a farmers’ organization, led a protest in Armenia. The protest group includes people representing farms and coffee-growing areas across the country. They gathered together to raise the voices of the farmers and workers working for work. But there are no words.
“What we earn is enough to eat. The price of coffee was not enough for us to save money for our children. So here we are, leaving our homeland, to look forward to the president saying, “I will raise the price of coffee for you” – Maria Dorado, 56, Colombian farmer.
The farmers are crying out for help!
Following the farmers’ protests, Colombia’s agriculture ministry called for a reduction in tensions. The government has also authorized an $80 million subsidy for farmers. But is $80 million enough? For people, they don’t think it’s enough.
The government has tried Part of it
Coffee industry executives from Brazil and Colombia met in June, a month before the World Coffee Producers Forum, to solve the ongoing price crisis.
Held at the headquarters of Brazil’s agriculture ministry, the conference comes ten months after representatives of the two countries’ coffee industry issued a joint statement on taking action and responding to the low price of coffee.
“Indeed, the situation is dire” representatives of both countries, including the FNC and BSCA, expressed concerns about the coffee industry in a statement after the recent meeting.
“Prices have plummeted since coffee leaders from Brazil and Colombia met for the last time in August 2018. Now below the cost of production, creating the impoverishment of coffee-producing regions around the world. That will create an uncertain future for both growers and consumers.”
Zhang Jose Marcos Magalhães, chairman of the 5,000-strong Minasul cooperative, based in Brazil, told the meeting: “It’s time to act. We need to find a solution quickly before thousands of coffee growers go bankrupt worldwide. The longer this crisis goes on, the more manufacturers will leave the industry.”
In their joint statements, the leaders will agree on supporting transparency in trade and minimizing the interference of market factors that negatively affect coffee prices. The leaders also openly discussed their desire to seek government intervention and market regulation.
“The two countries believe that the ICE and U.S. Transcontinental Exchange’s adjustment of non-commercial fundraising investments about coffee deals are critical to what we are doing.”
Coffee companies are trying for the industry!
Category of acronyms
FNC (Federación Nacional de Cafeteros de Colombia – Colombian Coffee Growers Federation): Association of Coffee Growers in Colombia
BSCA (Brazil Specialty Coffee Association): Brazilian Specialty Coffee Association
ICE (Intercontinental Exchange): Transcontinental Trading
– C Price: Low floor price for coffee beans