Coffee Production and Pricing
To produce one pound of coffee, over 1,500 cherries are needed, each containing two seeds. The average US price for a pound of coffee is $5.89, but specialty coffee, such as single-origin, can cost over $30 per pound, with some exclusive harvests reaching $80 per pound.
Factors Affecting Coffee Quality and Price
The high price of specialty coffee is due to factors like altitude, climate, soil, and sun, which affect the quality and flavor of the coffee. High-altitude coffee produces fruity and floral flavors. Small-scale farmers, who own almost 95% of the world’s 12.5 million coffee farms, can earn higher prices for their coffee if they produce high-quality beans.
Coffee Production Methods
Single-origin coffee ensures distinct flavors come through, but achieving quality is difficult due to uneven terrain requiring hand-picking, and attention to ripeness. This labor-intensive process contributes to its high cost, differing from mechanized production in large farms like Brazil, which prioritizes efficiency over quality control, resulting in lower-priced commodity coffee.
Coffee Rating and Classification
Coffee is rated based on its distinct flavors, with specialty coffee being of higher quality. Not all Arabica coffee is equal, and the price of coffee varies greatly, with some selling for over $6,000 a pound, due to factors like flavor and harvest size.
Coffee Processing and Grading
After harvesting, workers sort and process the coffee quickly to maintain its quality, with different processing methods impacting the taste. In Kenya, coffee is commonly processed through a washed method, involving depulping, fermentation, and washing to remove the outer skin and sticky inner layer. The coffee is then graded, with lower quality beans separated and sold, providing important income to producers.
Roasting and Flavor Development
Roasting is a crucial step in bringing out the best flavor in single-origin coffee, requiring careful attention and skill to develop the ideal roast level. The Trier allows for monitoring the color and smell of coffee as it roasts, with green coffee initially smelling like hay or grass and becoming sweeter as it roasts, eventually developing a sweet, fruity, and baked flavor when fully developed.
Challenges in the Coffee Industry
The cost of coffee is high due to increased expenses from farm to port, including packaging and shipping. Companies invest in relationships with single-origin producers, which raises the cost, but also ensures better quality and flavor. However, the quality of single-origin and blended coffees can vary, and processing methods can impact flavor and price.
Transparency and Fair Pay in the Coffee Industry
Each country has its own method of grading coffee, with factors like size, shape, and color impacting the grade and price. After production, green coffee is exported and roasted, but the process becomes opaque, making it difficult for farmers to know if they’re being fairly paid. The price of Arabica coffee is set by the Sea Market, which doesn’t consider coffee quality and is volatile, making it hard for farmers to operate sustainably.
Impact on Small-Scale Farmers
44% of small holder coffee farmers live in poverty despite specialty coffee being sold at a premium. Many farmers, especially those producing less than 5 kilos, are not breaking even. Some roasters are working towards direct trade partnerships to benefit coffee producers and establish long-term relationships, with some also publishing the prices they pay for green coffee to promote transparency.
Efforts Towards Transparency and Fair Pay
The level of transparency in the coffee industry varies, and as roasters, it’s their job to educate consumers about the difference between fairly sourced and cheap coffee. Many in the specialty coffee industry are working towards more transparent and better pay for producers, as well as access to research and best practices to improve their situation.
Conclusion
In conclusion, the coffee industry is complex, with many factors affecting the quality and price of coffee. While some farmers struggle to make a profit, others are working towards more transparent and fair trade practices. By understanding the challenges and efforts in the coffee industry, consumers can make informed choices and support fair trade practices.
Key Points
- Over 1,500 cherries are needed to produce one pound of coffee.
- The average US price for a pound of coffee is $5.89, but specialty coffee can cost over $30 per pound.
- Small-scale farmers can earn higher prices for their coffee if they produce high-quality beans.
- Coffee is rated based on its distinct flavors, with specialty coffee being of higher quality.
- The cost of coffee is high due to increased expenses from farm to port, including packaging and shipping.
- 44% of small holder coffee farmers live in poverty despite specialty coffee being sold at a premium.
- Some roasters are working towards direct trade partnerships to benefit coffee producers and establish long-term relationships.
Key Vocabulary
| Term | Definition | Example Usage |
|---|---|---|
| Specialty Coffee | High-quality coffee with distinct flavors, produced using specific methods and beans. | Single-origin coffee is a type of specialty coffee that ensures distinct flavors come through. |
| Single-Origin Coffee | Coffee produced from a single region or farm, with unique flavor profiles. | Single-origin coffee from Ethiopia is known for its fruity and floral flavors. |
| Arabica Coffee | A species of coffee bean known for its high quality and distinct flavors. | Arabica coffee is considered to be of higher quality than Robusta coffee. |
| Coffee Grading | The process of evaluating coffee beans based on factors like size, shape, and color. | Coffee grading is an important step in determining the quality and price of coffee. |
| Roasting | The process of heating coffee beans to bring out the desired flavor and aroma. | Roasting is a crucial step in bringing out the best flavor in single-origin coffee. |
| Direct Trade | A business model where coffee roasters purchase coffee directly from producers, eliminating intermediaries. | Direct trade partnerships can benefit coffee producers by providing them with higher prices and more transparency. |
| Small-Scale Farmers | Farmers who own and operate small farms, often producing coffee on a limited scale. | Small-scale farmers can earn higher prices for their coffee if they produce high-quality beans. |
| Transparency | The practice of openly sharing information about the coffee production process, including prices and quality. | Transparency in the coffee industry is important for ensuring fair pay and quality control. |
| Commodity Coffee | Coffee produced on a large scale, often using mechanized methods and prioritizing efficiency over quality. | Commodity coffee is often sold at a lower price than specialty coffee. |
| Coffee Cherries | The fruit that contains coffee beans, with each cherry typically containing two seeds. | It takes over 1,500 coffee cherries to produce one pound of coffee. |
Watch The Video
Vocabulary Quiz
1. Which term refers to coffee that is grown in a specific region and has distinct flavors?
A) Commodity coffee
B) Blended coffee
C) Single-origin coffee
D) Arabica coffee
2. What is the primary factor that contributes to the high cost of single-origin coffee?
A) Mechanized production
B) Large-scale farming
C) Labor-intensive process
D) High demand
3. Which method of processing coffee involves depulping, fermentation, and washing to remove the outer skin and sticky inner layer?
A) Natural method
B) Honey method
C) Washed method
D) Dry method
4. What is the name of the market that sets the price of Arabica coffee, which does not consider coffee quality and is volatile?
A) New York Market
B) Sea Market
C) Coffee Exchange
D) Global Market
5. What percentage of small holder coffee farmers live in poverty despite specialty coffee being sold at a premium?
A) 24%
B) 34%
C) 44%
D) 54%
Answer Key:
1. C
2. C
3. C
4. B
5. C
Grammar Focus
Grammar Focus: The Use of the Present Simple and Present Perfect Tenses to Describe General Truths and Ongoing Situations
Grammar Quiz:
1. By the time I ________ my coffee, it was cold.
- A) drink
- B) have drunk
- C) had drunk
- D) was drinking
2. The price of Arabica coffee ________ by the Sea Market, which doesn’t consider coffee quality.
- A) sets
- B) is set
- C) has been setting
- D) was set
3. Small-scale farmers ________ higher prices for their coffee if they produce high-quality beans.
- A) can earn
- B) earn
- C) have earned
- D) are earning
4. Many farmers ________ in poverty despite specialty coffee being sold at a premium.
- A) live
- B) are living
- C) have lived
- D) lived
5. The coffee industry ________ complex, with many factors affecting the quality and price of coffee.
- A) is
- B) are
- C) has been
- D) was
Answer Key:
1. C) had drunk
2. B) is set
3. A) can earn
4. A) live
5. A) is