The economics of coffee: pricing, different classifications, and middlemen.
Here in Costa Rica there are different prices for coffee compared to in America. According to my research, that is because America imports over 1200 thousand tons of coffee each year while Costa Rica imports no coffee since it is grown here. The demand is normal and the supply is high, while in America the demand is high and the supply is lower. Here, a 1 lb bag of Cafe Britt coffee is $5, but in America it is $9 plus the shipping for it to get there. At the award-winning Del Cafe... Tal, we could purchase coffee for $10/lb while in America large scale stores like Starbucks purchase it for $15/lb. This mark-up is not necessarily seen by the producer themselves but more likely by middlemen, unless significant effort has been put forth in order to eliminate them like in Daisy's case. Also, you can buy coffee directly from foreign producers and will most likely get a better deal rather than going through a large intermediary. Starbucks even sells a Costa Rican coffee called Tarrazu that is 1 lb for $13, and it is out of stock on their website. The description is full of fluff to make the coffee sound different and great. Examples of this are "single-origin coffee offers vibrant flavors and a refreshing acidity" and "vibrant and refreshing coffee is complemented by bright, fruity flavors like lemon, strawberry, peach and pineapple". I believe almost none of this superfluous marketing ploy.
Once again, the price of coffee depends on its classification. The price varies significantly if the coffee is Fair Trade, organic, organic certified, shade-grown, or sungrown. Some of these methods are healthier for the environment in general, while others are not, so it is up to a eco-friendly consumer to purchase the more expensive coffee. Since I do not drink coffee, I don't know if there would be a difference in the taste between all these classifications but I'm assuming not.
No comments:
Post a Comment