World Price of Coffee

[Jh...@aol.com]

Greetings, friends from Chiapas as we near the two-year mark of our trip to San Cristobal de las Casas!

 

In today's online edition of the Tico Times, the English weekly out of San Jose, Costa Rica, there is an interesting story about this year's coffee crop.  The articles notes that the New York Stock Exchange projects coffee prices for March at $2.35 per pound, an 88 percent increase from the $1.25 per pound in March 2010 -- the highest price the cash crop has seen since 1997.  I wonder what this means for the coffee farmers in Chiapas?

 

To read the entire article, go to www.ticotimes.net . 

 

Peace,  John and Han

[Brian Case]

Maybe Peter knows...

Hey Peter, do you know what this means for the coffee farmers in
Chiapas?

>To read the entire article, go to _www.ticotimes.net_
>(http://www.ticotimes.net) .
>
>Peace, John and Han
>
>--
>To post a note to this group, press "return" or send email to
>chia...@googlegroups.com
>For the blog form of this email, which includes more resources,
>backgrounders, and travel information, go to
>http://chiapas09.blogspot.com
>For more options, visit this group at
>http://groups.google.com/group/chiapas09?hl=en

[Jh...@aol.com]

Greetings, Peter!

 

Thanks for your insightful reading of the situation!  Yes, we will stick with Equal Exchange.  Your message came through on the Chiapas09 address, so we presume that all others received your message as well.  In what ways, if any, can CIRSA, Equal Exchange or others, assist the small Chiapas coffee grower with credit so that trees can be replaced?

 

Han wanted me to report that we have five cherries on our indoor coffee tree, which we have raised from seed brought back from Central America.  Hardly enough to affect the world supply......

 

Our best,  John and Han

 

 

 

In a message dated 1/14/2011 1:27:03 P.M. Central Standard Time, pb...@equalexchange.coop writes:

Brian or John: If you don't see this on Chiapas09, can you forward it? I
had trouble sending something to that address yesterday, even though I'm
receiving the mail.

What's happened in Costa Rica has happened elsewhere, too.

All commodity prices have skyrocketed in the last two years. In coffee
this is partly due to weather reducing supply; and increased demand,
partly because of speculation.

The world market price for standard grade green coffee rose from $1.40 a
pound a couple of years ago to $2.40 now.

You will probably remember from our visit to Chavaheval that commercial
buyers were offering farmers the same or a little more per pound as CIRSA
was able to offer. At that point the farmers were saying they would stay
with CIRSA because CIRSA had stayed with them when commercial prices were
low.

Last year, Chiapas had a lot of rain right when the coffee was flowering,
which reduced the harvest. So when commercial buyers drive into the
village and offer 20% more than CIRSA can offer, it's hard for the farmers
to resist. We're paying, to CIRSA and others, around $3.00 a pound for
coffee and are having trouble finding enough. Farmers are getting higher
prices, but on smaller harvests, and it leaves CIRSA without coffee to
sell. In the short term, it's good for any farmer with coffee to sell. The
other problem for CIRSA is that everyone is farming tiny plots and their
trees are getting older and less productive. I don't know what they can do
about not having enough land, but they do need to replace their old trees,
for which they'll need credit.

Ultimately--like Old Man Potter in "It's a Wonderful Life"--the big boy
ends up buying when everyone else is selling. In this case, it's AMSA
(Agroindustrias Unidas de Mexico, SA), the multinational that buys up 80%
of Chiapas' coffee on behalf of big roasters in the U.S. and Europe who
end up being the only buyer.

So stick with Bailey Brothers Savings and Loan and Equal Exchange.