|SCAA Seattle - Apr. 11 - "Cost to Produce vs. Price" Panel|
A month ago I had the honor of moderating a panel of three experts at the SCAA conference in Seattle.
- Mark Lundy, of CIAT, who presented data from Narino, Colombia
- Ben Carlson, of Long Miles Coffee Project, who presented data from Burundi
- Daniele Giovannucci, the Committee on Sustainability Assessment (COSA), global data
|Ben Carlson, Long Miles Coffee Project and Mark Lundy, CIAT|
- "Coffee Specialists" (coffee > 50% of income)
- "Diversified Coffee Farmers" (coffee income = income from other sources)
- "Off-Farm Income Farmers" (coffee < 50% of income).
Narino, Colombia Costs:
1. Specialists = $1.58/lb. parchment coffee
2. Diversified = $1.40/lb. parchment coffee
3. Off-farm income = $2.38/lb. parchment coffee
Ben shared data from a 2014 report he helped produce with Integrity Research from London. The work was contracted by the Trademark East Africa group. Their research included five coffee-growing provinces which would be the majority of the coffee producing provinces. They sliced the data by farm size and showed the following:
< 300 trees = $0.73/lb. parchment
300 - 500 trees = $0.68/lb. parchment
500 - 800 trees = $0.74/lb. parchment
> 800 trees = $0.65/lb. parchment
(using cherry to parchment ratio of 6:1)
Finally, cost data from COSA gave us a remarkable 7 country span:
Country V = $0.52/lb. parchment
Country I = $0.72/lb. parchment
Country N = $0.92/lb. parchment
Country C = $1.12/lb. parchment
Country G = $1.32/lb. parchment
Country K = $1.52/lb. parchment
Country C = $1.96/lb. parchment
(The exact names of countries are intentionally withheld by the author, COSA, in order to avoid over reactions by groups in those countries and also to avoid getting distracted from the point -- which is the wide variety of costs between and within countries.)
Daniele's slide immediately following the numbers above showed profitability for these same countries:
Country V = $0.22/lb. parchment
Country I = $0.73/lb. parchment
Country N = $0.78/lb. parchment
Country C = $0.72/lb. parchment
Country G = $0.45/lb. parchment
Country K = $0.17/lb. parchment
Country C = $0.38/lb. parchment
SPECIAL THANKS: to Mark Lundy for impromptu translations as several Spanish-speaking producers came to the microphone.
SPECIAL THANKS to audience members who suffered through my poor translations from French to English of Ben's slides.
SPECIAL THANKS to Daniele Giovannucci because although he couldn't be there due to a time conflict, he arranged to have his organization represented. With several coaching sessions prior to the event, Daniele brought me up to speed so I could present his slides.