$12 Cup of Coffee? Not That Far Off

The New York Post had an article today titled, “$12 cup isn’t your average joe,” talking about coffee retailer Cafe Grumpy introducing a $12 cup of coffee. People reacted with awe at the sky high price and a number of folks posted negative comments on the audacity of the shop to charge a price that high for a simple coffee.

But few understand how we’ve come to enjoy such a low price for this integral part of our daily life.

If the price of coffee truly considered all of the costs to the farmers producing the beans, we might actually see a $12 cup of coffee as a bargain. Even with Fair Trade, organic premiums and other price supports, most farmers are losing money on the crop. But given the poverty prevalent throughout coffee-farming communities, few farmers them have a chance to pursue other alternatives or get an education to improve their options. And they can’t afford to let their children attend school and the cycle continues.

Coffee-farming families need viable alternatives to coffee in addition to a more equitable price to ensure a sustainable lifestyle.

I read that story a few days ago too. The media made a big deal about it, but it really is a bargain.

As a side note, I read a piece of news today saying that some Latin American country (I believe it was Guatemala) either increased coffee production by 10%, or is expected to increase production by 10%.

Higher yield sounds great, but it’s just as deceptive as thinking that high GDP translates into a decent living standard for all citizens.

Raza

Was it just a cup of normal coffee, or was it something special? $12 sounds steep for a regular espresso.