[Homeroast] coffee price hikes smarting

Edward Bourgeois edbourgeois at gmail.com
Sat Feb 12 19:02:12 CST 2011


Much similar is happening in all areas of food. Small dairy farms that
process their own and small farms that sell local both retail and
wholesale are deal with the same thing. I sold lamb and wool into the
commodity market years ago and it was a constant roller coaster ride.
Then when I went local the customer were always comparing to market
prices for the good and bad. Many time the market price was more on
speculation than it was on the realities of weather, input costs, true
availabilities or anything that really made sense. Hopefully the money
grubbers will find something new to play with soon but food seems a
hot one right now and probably for at least the near future.

On Sat, Feb 12, 2011 at 3:25 PM, Tom & Maria - Sweet Maria's Coffee
<sweetmarias at sweetmarias.com> wrote:
> Its a good question Paul - in fact it's such a good question I will be
> speaking on that at SCAA conference. The market DOES affect Farm Gate
> pricing. It should seem impervious to it since it is negotiated person to
> person, but when the local price to sell coffee fruit starts to go up, it's
> puts pressure on everyone to raise their premiums. It's so easy to simply
> harvest fruit and sell it, and avoid all the costs of processing the fruit,
> drying, milling, etc etc. And if a farmer buys cherry from neighboring
> farms, they have to compete directly in the local cherry market. All those
> local prices are guided by the global price to some degree. The fact is, if
> and when the global price collapses we will be paying the same, so would
> think a farmer would see the long term relation as being more important that
> a short term gain for one season. But realistically I can't expect them to
> ignore it. Those who will really suffer this year are cooperatives. I can
> see some not making it, defaulting on contracts, etc. That is sad because it
> reduces the competition, which will hurt farmers in the long run. The other
> problem is quality. If you can do less and get more money, many will opt for
> that. I don't think it affects us because of direct relationships and tons
> of cupping quality control to make sure coffees are good - but I think a lot
> of regional coffees, a Costa Rica Tarrazu pooled lot, is going to be a lot
> worse this year. I don't mean to be all doom and gloom, we'll see where this
> goes.
>
>
> Tom
>
>> Tom,
>>
>> I'm happy (as I think most of us are) to pay more for Farm Gate coffee.
>>  Does FG
>> help keep prices stable, since you negotiate directly with the farmers?
>>
>> Paul
>>
>>
>>
>>
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>
> --
> -Tom
> ___________________________________________________________________________
> Sweet Maria's Coffee  -  Oakland, California  -  http://www.sweetmarias.com
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-- 
Ed Bourgeois aka farmroast
Amherst MA.
http://coffee-roasting.blogspot.com/



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