Coffee: One of the world's favorite drinks produced on the cheap
Small-scale coffee producers around the world are suffering from a price slump. Growers from Colombia to Vietnam are feeling the pinch even as more and more people switch to the bitter brew.
Hands on coffee
Coffee plants originated in tropical Africa. Today though, coffee is grown in over 70 countries all over the world. Brazil is by far the largest producer, followed by Vietnam, Colombia, Indonesia and Ethiopia. Even countries like India and China are in the top tier. But recently prices for the raw material have plunged, hurting the smallest producers. Here a harvester near Santuario, Colombia.
Where's the beans?
Long before brewing, the berries of the coffee plants are harvested and dried. Only then are the seeds inside — better known as beans — ready for roasting. This long, complex production line is one reason smallholder framers suffer, since they usually just pick the fruit and are not involved in the rest of the process. What they earn has little to do with the prices paid by fancy cafe customers.
Dried, weighed and ready to roast
Another problem for coffee producers is the fact that many wholesalers blend various coffees together from different sources to ensure constant quality. This makes it hard for individual producers or countries to promote their beans as something special. Colombia has nonetheless been able to retain its renown as a high-quality producer of soft beans. But is that enough?
New York City prices
Like many commodities, coffee is traded in US dollars. And many of the transactions go through the New York Stock Exchange. In 2016, a pound of coffee was trading for around $1.50 (€1.34). Earlier this year it was under a dollar, an all-time low. Global overproduction has been blamed. Far away from the financial hustle, Colombia is still home to around 540,000 families who work in the business.
Grasping at straws
Some Colombian coffee farmers cannot wait until prices pick up and are taking drastic action by ripping up their fields and planting other crops like sugar cane. Here a former coffee grower has turned to brown sugarloaf production. Earlier this year Reuters reported on nearby Peruvian farmers abandoning their farms to grow coca, the main ingredient in cocaine, because of the low coffee prices.
Served hot or cold
In an effort to distinguish themselves, avoid exploitation and keep prices up, a number of coffee certifications have been created. One of the most famous is "Fairtrade." This label is supposed to guarantee minimum prices and therefore a standard of living for producers. It is also a direct response to the crop's negative impact on the environment. Still the lion's share of coffee is uncertified.
Trying to hold on
Despite all efforts many producers around the world are selling their products at a loss. The Colombian government has pledged aid money, but critics are calling for a change to the entire coffee supply system. They argue that coffee producers need to come together to negotiate prices and take the power away from New York traders. By the time that happens more coffee plantations may disappear.
Can it ever be fair?
At the moment it seems like an uphill battle for small producers. Pressure from wholesalers and retailers keeps pushing down prices, as did last year's overproduction. And so far consumers don't seem to know or understand that the $5 they spend at Starbucks doesn't reach the tiny rural farms. As interest in the drink continues to increase, producers will need to make their case for higher prices.