Gourmet Coffee Shop

Wednesday, August 24, 2005 -----

Dont Fault The Growers

An article from SFgate.com - Sept 30, 2004

Wholesale coffee prices have risen 36 percent in the last year in U.S. commodities markets. But to farmers, especially those who grow the specialty beans prized by coffee aficionados, the recent increases only begin to repair the damage of a disastrous price slump that has devastated regions such as Central America.

"We call it the coffee crisis,'' said Mike Ferguson, spokesman for the Specialty Coffee Association of America, which represents coffeehouses. "Coffee farmers were literally walking away from farms all over the world.'' Yet, even though the wholesale price of beans has jumped lately, coffee itself represents only a tiny fraction of what Americans pay for all those concoctions with the fancy names.

Take that double cappuccino, for instance. According to Ferguson's association, coffee makes up just 5 percent of the cost per cup.

In fact, all the ingredients -- from sugar and milk, which also have experienced double-digit increases over the past year, down to the cup, heat- sleeve and lid -- together make up less than 20 percent of the cost of the cappuccino, according to the association's estimates. Labor and rent account for a far larger share of the cost -- about 46 percent -- and other overhead and profit make up the rest.

Click here for the rest of the story...

::  Posted by: Bello Montana Roasters  at 8:15 AM
  

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