small farmers get how much for this expensive coffee? | Supply Chain & Export Forum | Clorofile
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small farmers get how much for this expensive coffee?

U
satu bulan yang lalu
70-75% of global coffee production is from the smallholder Farmer with less than 5 acres. But if we look at farmers in Ethiopia with a $1 -3-a-day average of coffee, while end consumer buys a $5-7 cappuccino, there's a crazy gap there.

When C arabika prices are through $3 a pound, which is fun, most of the imports and traders are already holding stock. The farmers who sold their coffee for 9-12 months earlier did not enjoy the rise.

The yields are also small: farmers specialty smallholder are average 5-10 bags per acre. than the estate of 15-20 bags. So the absolute income per farmer is very limited.

Genuely cares about this: there's a business model on fair chains and also financially reliable from the business side?
7 Replies
K
satu bulan yang lalu
forward contract directly with the farmer at a locked price. One model that started many specialty Zroaster implement. Farmers can certainty infed at the beginning of the season, roaster can supply certainty. Tradeoff is a price risk if the market moves away.
H
satu bulan yang lalu
the cooperative model that has more leverage into the market is state works if the manager is good. little single operatives don't have bargain power, but if they can aggregate to cooperative union level, they can negotiate more equally.
A
satu bulan yang lalu
i'm sorry to ask you the basic question: which farmer usually sells to? straight to the exporter or is there a middleman first? if there's a lot of midparents, who cut large margins?
T
satu bulan yang lalu
in most places, there's a collector or an nape that buys from farmers, and then sells to the mill / exporter. each take a margin. the farmers are the furthest away from the market and the least valuable information, so the bargain position is weak.
J
satu bulan yang lalu
what i've been watching in the field: they need cash now, it's an unbreakable structural trap without proper access to credit.
B
satu bulan yang lalu
from the perspective of supply chain, inviting to farmer is inviting to supply security. the intensification program that helps farmers increase yield from 5 to 10 bags per acre is mutually benephysical to all parties in chain.
P
satu bulan yang lalu
does anyone know about the Farm Service Center that some NGO or development fund agencies try implement? Anyone ever met in the field?

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