How is it possible for coffee farmers to get paid below cost of production? скачать в хорошем качестве

How is it possible for coffee farmers to get paid below cost of production?

In this clip founder Alisha Esmail asks Brandon Bir how it's possible for coffee farmer's to get paid below cost of production? Alisha Esmail: The USDA report for 2021 came out and very blatantly, I'll pick on Peru because we've been focused on Peru lately, very blatantly says that it cost roughly $2.54 to produce a kg of coffee, but the average sale price was $1.52, which means they're getting paid below cost to production. How is this possible? Brandon Bir: A lot of it is motivated by, again, it's this disconnect. It's this disconnect of how someone in a consuming country can assume certain things about a producing country. Prices aren't set in Costa Rica. Prices aren't set necessarily in Ethiopia. Prices are set on the commodity market, right? Off of the commodity market that price is set by a bunch of people that don't live in producing countries necessarily so This has been the story of coffee for a very long time a lot of people go in and they use fear tactics or They leverage the C market to drive prices down and a farmer fearful that they won't be able to sell to anyone because again access to market is a huge challenge for coffee producers. So a farmer that rarely sees a buyer come in, a buyer comes in and says look the C market is this, I can only buy your coffee for this and it's less than the cost of production, well it's already done. You know, it's been done, they have this product, they have to sell this product. So at the fear of not being onto the product, which costs money in itself, they sell it for under what it actually was cost them to produce, which puts them into debt. It puts them in a place where they have to go out and get agri-loans or whatever, and that's just a bad cycle of just debt after debt after debt after debt until they just leave them, leave coffee in general. It continues to happen, but as access to information is more readily available to people in producing countries, I think it will happen less and less. I hope.