high organic coffee prices
TRANSCRIPT
High organic coffee prices are
unlikely to deter serious coffee
drinkers.
By www.BuyOrganicCoffee.org
Coffee prices in general are at a 34
year high for average composite
coffee at $2.31 a pound, up from
$1.12 a pound just two years ago in
April of 2009.
By www.BuyOrganicCoffee.org
Organic coffee which commands a
premium is priced higher still.
The issue for coffee in general is not one
of low supply as total coffee exports from
April 2010 to March 2011 were 101 million
bags, the highest yearly total ever
recorded.
By www.BuyOrganicCoffee.org
Factors such as frost in coffee growing
areas of Brazil, the world’s largest
producer, contributed to the high coffee
prices and high organic coffee prices.
By www.BuyOrganicCoffee.org
The high prices of coffee, in general, has
encouraged exporting countries to empty
warehouses and increase exports.
By www.BuyOrganicCoffee.org
However, it takes up to 12 years to
mature and produce coffee beans so
there is not an immediate ability of most
nations to increase production.
By www.BuyOrganicCoffee.org
Colombia and Brazil, however, have been
hit by torrential rains due to el Niño which
has reduced production by roughly 30%.
By www.BuyOrganicCoffee.org
When the climate allows in these areas
both Colombia and Brazil may be able to
pick up their production and help drive
coffee prices down.
By www.BuyOrganicCoffee.org
Part of the high cost of coffee is also
because of the high cost of fuel.
Rising oil prices raise the cost of
transportation and also of synthetic
fertilizers.
By www.BuyOrganicCoffee.org
The high cost of fertilizers promises to
force the use of more sustainable
practices such as those used to produce
healthy organic coffee.
In addition the use of more sustainable
practices will help force growers to care
for trees in such a way that they will
produce longer.
By www.BuyOrganicCoffee.org
Despite the high price of coffee and the
higher price of organic coffee veteran
coffee drinkers are not expected to
neglect their favorite brands of healthy
organic coffee.
By www.BuyOrganicCoffee.org
Not only is organic coffee attractive
because of its aroma and flavor but
because of its relative lack of the
impurities found in a standard cup of
regular coffee.
By www.BuyOrganicCoffee.org
In addition organic coffee antioxidants are
an attractive benefit in that your steaming
cup of organic coffee has many health
benefits such as the fact that more
organic coffee can lead to less diabetes,
colon cancer, and prostate cancer.
By www.BuyOrganicCoffee.org
Historically coffee prices fluctuate with
demand and supply.
By www.BuyOrganicCoffee.org
Weather conditions such as El Niño make
planting, harvesting and even crop
survival difficult in mountainous regions
such as those used for coffee in Colombia
and Brazil.
By www.BuyOrganicCoffee.org
As coffee becomes more popular and
organic coffee, especially, reaches new
coffee drinkers it is unlikely that coffee
consumption will go down.
By www.BuyOrganicCoffee.org
The limiting factor will be supply and the
factor driving prices will be the same.
By www.BuyOrganicCoffee.org
The problem for the organic coffee grower
is that he already sells his pure coffee
product at a premium.
By www.BuyOrganicCoffee.org
The facts about organic coffee are that it
costs more, in the short term, to use
sustainable practices in growing,
harvesting, and processing organic
coffee.
By www.BuyOrganicCoffee.org
Although long term this pays off it does
not help short term cash flow.
By www.BuyOrganicCoffee.org