Coffee is currently being traded at the lowest prices in more than 15 years, causing a crisis with far-reaching consequences for coffee producers around the world. Speciality coffee demands fairer prices for better-quality coffee. But without knowing how much farmers need to spend to produce a pound of coffee, and how this varies across countries, it’s hard to know what “sustainable prices” really are.
Traditionally, it has been difficult to effectively calculate costs of production. This presentation will unveil an innovative cost of production model that Caravela is using to calculate costs of production in small-scale coffee farms in 7 Latin American countries: Colombia, Ecuador, El Salvador, Guatemala, Mexico, Nicaragua and Peru.
By breaking down the costs for the average coffee farmer in each origin, we can begin to uncover what it takes for producers to operate sustainably.
Presented by Alejandro Cadena, co-founder and CEO of Caravela Coffee.