Coffee Producers Seeking Quick Talks with Industry on Low Prices
18 Sep 2018
According to London Reuters, Coffee producers want to meet main clients like Starbucks, Douwe Egberts, Jacobs, and Nestle urgently, to come up with means of increasing prices which have been low for 12 years consecutively.
After holding a meeting to talk about the price issues, the World Coffee Producers’ Forum had a press conference on Monday. 85% of coffee production in the world is produced by members of the forum.
Roberto Velez who is the CEO of the Colombian Coffee Growers Federation said “These are hopeless times for more than 25 million coffee growers in the entire world. The problem is far from what we can imagine.”
He then added, “If the coffee industry has to survive, then the sector and customers should know that the situation cannot be sustained.”
On Sept 4th, the price of Arabica coffee reduced with 98.65 cents per lb, which is the second lowest position since July 2006. The price fluctuates within that range, although on Monday, the price decreased with 98.90 cents.
This year, the reputation of a crop in Brazil has weakened the market. However, observers have placed an enormous but unpromising bet on the future market of Arabica coffee from New-York, on top of the decreasing insistence on prices.
Coffee growers in the Caribbean and Central America are represented by Promecafe. Its executive secretary, Rene Leon Gomez they are planning to have some conversation with leaders in the industry from all over the world, as well as raising consumer awareness campaign, in regards to the problem.
He said, “In my region, I can say that millions of producers are hopeless at the moment.” “Many farms are being disowned, and social conditions have worsened.
Some of the plans that consumers are discussing is a good program of awarding certificates to companies that are ready to provide prices that are sufficient to allow farmers make a living.
At the moment, most production farmers are making losses.
Ricardo Arenas Mendes who happens to be the president of Anacafe, a group of coffee producers located in Guatemala said, “Each day, we are experiencing the price problem, leading to increased illegal immigrants from our countries moving to North America. The situation is extremely dangerous.”
He added, “Our people are on starvation. Coffee buyers are paying less price than they used to pay 30 years ago.”
The producers said that the production of coca, a crop used to produce cocaine should be encouraged, following a decrease of coffee prices.
From the Colombian Coffee Growers Federation, Velez said that coca production in Colombia was always high.
He said, “You will realize that coffee growers are currently growing coffee and coca in some areas.”
This week, London is hosting many coffee growers, who are attending a semi-yearly meeting of an inter-governmental body known as International Coffee Organization.
However, producers said their hope is that low prices will be the agenda of the meeting.
“ We want to discuss nothing else apart from low prices,” said Velez.