High Global Coffee Prices have Adverse Effects

The current (near) record level international coffee prices are having adverse effects on coffee farmers and the local economies in coffee growing areas.

This first news story highlights the issue of small farmers selling their coffee cherries “at the farm gate”; this means selling directly to speculative local buyers rather than through the cooperatives and associations that they are members of. On the surface, this does not appear that big an issue – it’s their coffee, they can sell it to whomever they want. The difficulty comes when these cooperatives and associations struggle to fulfil the orders placed with them or repay the loans they have taken out to provide credit to the member farmers on the strength of the coffee they will then supply.

http://www.businessdailyafrica.com/Corporate+News/High+coffee+prices+in+foreign+markets+spur+illegal+trade+/-/539550/1274318/-/11845nk/-/

This news clip throws light on the growing problem of thefts from coffee growers plots and from cooperatives drying stations; again making life difficult for the growers and their ability to meet the contracts and orders they are committed to.

http://www.youtube.com/watch?v=fp19HWEA7Cw

 

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