Another reason buying low-grade, cheap coffee is harmful to our world.) This price is dangerously low because it means many farmers won't turn any profit for the year. (2019 Update: the current "market price" of coffee this year has hovered around $1 per pound of unroasted coffee. This assumes a minimum Fair Trade price, though many roasters still buy coffee at $1-2 per pound, despite the overwhelming evidence that this encourages generational poverty. This money is sent to the farmer or farming cooperative and goes towards paying harvesters and employees, processing the cherries, equipment, government taxes, and administrative fees. Within this research is a general blueprint for following the trail of money in coffee: Green Coffee Cost - $1-6.00 Per Pound The SCAA released a variety of surveys and conclusions in 2014 titled Economics of the Coffee Supply Chain. It can be shocking to find out what the farmer gets, compared to what the average consumer spends at a coffee shop. There have been a few studies that map out the flow of money from coffee consumers to coffee farmers. While these examples are from the Americas, the problems of malnutrition and poor education are global.Not to mention other problems of healthcare, debt slavery, or environmental decline.the reality of the coffee farmer isn’t as bright as we may wish it is. Many of these harvest workers received less than the guaranteed minimum wage.Ī 2010 study, cited in the Specialty Coffee Association of America’s (SCAA) whitepaper on Hunger In The Coffeelands, revealed that 63% of coffee households in Central America experience food insecurity and malnourishment at some point each year. On a bigger scale, child labor results in generational poverty, which leads to more child labor and lack of education.Įven as recent as 2003, over half of Guatemala’s harvest force was not given access to overtime pay or employee benefits protected by the law. Harvesting coffee can be dangerous for children because of heavy bags, long exposure to the sun’s rays, and unsafe exposure to agro-chemicals. According to the Food Empowerment Project, child labor is particularly high in coffee producing territories of Brazil and Honduras, causing a decline in children’s education. Read: 3 Reasons Buying Cheap Coffee Is Bad For The World Malnutrition And Poor EducationĬoffee farming communities around the world face challenges many of us would be terrified to find ourselves before. Then we’ll get into what you should be paying for coffee. While this summary of coffee economics was born out of research, there are always exceptions There are always hidden variables and consequences when we play with economics and international trade. These are the questions this blog will attempt to address, but be aware that this issue is complex beyond measure. How much should you pay for coffee beans? What is socially responsible? How little is unethical? What is a good balance of fair wages and affordable coffee? When we break down coffee pricing to a detailed level and look at it with a critical eye, the reality isn’t very pleasant: real, hard working people suffer when we’re too stingy on our coffee beans. Have you ever rolled your eyes at a $20 bag of coffee at a coffee shop? The feeling is all too familiar, but the more you learn about coffee, the more you'll realize it's not so crazy after all.
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