By Kang Hyun-kyung
Some Korean consumers complain that prices of espresso-based coffees are too expensive in this country. The discontent sounds reasonable when we look at the price tags of Starbucks coffee which are higher in Seoul than any other city in the world.
The pros and cons debate of coffee prices leads to a burning question: Are farmers in coffee-producing countries really gaining much as a result of the rapid consumption growth of espresso-based coffees in Korea? The answer may be "not exactly."
The price of high quality green beans produced at a coffee farm in Brazil was much lower than the average consumer imagines. It was $6.6 per kilogram. The coffee was the winner of a competition to select Brazil's finest coffee in the country years ago.
Those who are familiar with the coffee industry say that nearly 20 percent of the product disappears when green beans are roasted. But still it is very cheap when we think about an average price of a cup of espresso-based coffee. It hovers around 4,000 won (nearly $3.7). Korean consumers have no idea what kind of coffee beans those coffee chains are using to brew their coffees.
This indicates that ethical sellers are as important as conscious consumers. Even though consumers are willing to pay higher prices in return for high quality and certified coffee, to support coffee farmers, this alone cannot make a difference for devoted small farmers.
Farmers invest a lot to produce quality coffee. They go for diverse certification programs to build a strong reputation for their coffee. Certification programs tend to cost farmers a production decrease because they have to follow strict rules set by those programs.
Coffee seems to be a high-risk high-return business as well because any factors, such as weather and soil conditions, can make or break their coffee production during the year.
A small minor change could result in a huge difference in production, according to Henrique Sloper de Araujo, CEO of Camocim Organic farm in Brazil.
He said drought, for example, can affect the quality of coffee. "Without drought, nearly five out of 10 bags we produce are fine. When drought hits, only two are," he said.
Ismael Andrade, the owner of the Sao Silvestre farm in Carmo do Paranaiba, said the flavor, taste and quality of coffee produced in the same farm tend to vary. The experienced coffee producer said he is still struggling to uncover the reason behind this.
Some Korean consumers complain that prices of espresso-based coffees are too expensive in this country. The discontent sounds reasonable when we look at the price tags of Starbucks coffee which are higher in Seoul than any other city in the world.
The pros and cons debate of coffee prices leads to a burning question: Are farmers in coffee-producing countries really gaining much as a result of the rapid consumption growth of espresso-based coffees in Korea? The answer may be "not exactly."
The price of high quality green beans produced at a coffee farm in Brazil was much lower than the average consumer imagines. It was $6.6 per kilogram. The coffee was the winner of a competition to select Brazil's finest coffee in the country years ago.
Those who are familiar with the coffee industry say that nearly 20 percent of the product disappears when green beans are roasted. But still it is very cheap when we think about an average price of a cup of espresso-based coffee. It hovers around 4,000 won (nearly $3.7). Korean consumers have no idea what kind of coffee beans those coffee chains are using to brew their coffees.
This indicates that ethical sellers are as important as conscious consumers. Even though consumers are willing to pay higher prices in return for high quality and certified coffee, to support coffee farmers, this alone cannot make a difference for devoted small farmers.
Farmers invest a lot to produce quality coffee. They go for diverse certification programs to build a strong reputation for their coffee. Certification programs tend to cost farmers a production decrease because they have to follow strict rules set by those programs.
Coffee seems to be a high-risk high-return business as well because any factors, such as weather and soil conditions, can make or break their coffee production during the year.
A small minor change could result in a huge difference in production, according to Henrique Sloper de Araujo, CEO of Camocim Organic farm in Brazil.
He said drought, for example, can affect the quality of coffee. "Without drought, nearly five out of 10 bags we produce are fine. When drought hits, only two are," he said.
Ismael Andrade, the owner of the Sao Silvestre farm in Carmo do Paranaiba, said the flavor, taste and quality of coffee produced in the same farm tend to vary. The experienced coffee producer said he is still struggling to uncover the reason behind this.
