World Coffee Glut Sinks Farmers but Buoys Retailers

News Analysis:  World Coffee Glut Sinks Farmers but Buoys Retailers due to the vast pricing disparity currently in effect. A Coffee Grower receives approximately $1.00+ per pound for each 132 pound [60 kilo] bag they produce. Grocery stores globally charge approximately equivalent of  $7.00 to $12.00 per pound to their customers. Coffee Houses which use less than $.05 of coffee per cup, charge approximately $2.50 for it. Both retailing entities, use the argument about other costs such as: Facilities, Equipment, Personnel, Rents, etc.  associated with the End Product. This argument, while perhaps valid, ALSO  APPLIES TO COFFEE FARMERS. Yet, it is the ‘Downstream’ Retailers who prosper so well with this Current Pricing Structure, to the point of their having their stores placed globally. 

The very Specious Claims by Coffee Houses in Particular as to their “Generosity To Farmers” is remarkable. They, who have the most outrageous level of profits vis-à-vis the coffee growers, need to ‘Forget the Fertilizers’ and instead pay growers Sustainable Prices. Their Pseudo-Benevolence is of much too little reward for the Coffee Growers’ livelihoods. Retailers of ‘Either Feather’ need to get real. Their “Free Lunch” will not last forever.

Reference: http://tinyurl.com/kzhekay