The rapid increase in information and the availability of information has changed the way that coffee is traded (in some parts of the world). Years ago coyote's would by coffee from farmers a a fraction of the going price. Then the wet processors would buy it from the coyotes and make a fortune before exporting. This is still the case in some countries. However, it is not uncommon to go to a small remote farm in Guatemala these days and the farmer be able to tell you what coffee is trading for on the Coffee C in New York. The farmers have cell phones and the prices are listed in the local news papers.
So I'm amazed now with how much of the price of export coffee is going to the farmer. For instance with today's information and competition. Coyotes may only make 10Q per bag. And a wet mill may not make any more. With the farmer getting 280Q. With the work and risk of the Coyotes and the wet mill they are actually providing a great service at that price.
So now coyotes aren't the bad guys?
ReplyDeleteI've also been impressed at how much of the C price growers are getting. The question now is can small-scale growers actually make a living, or do we need to encourage a little bit of horizontal integration?