Daily Dispatch

One cent a cup for coffee farmers

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In the verdant southern highlands of Ethiopia, coffee farmer Gafeto Gardo thinks about quitting an industry that has sustained families for generation­s.

Over the past year, the amount Gardo gets for a kilogram of coffee beans has fallen a third to eight birr, reducing his income from a cappuccino sold in the West for $3 to $4 (between R41 and R55) to under a cent. “We’re losing hope. We’re not reaping as much as we should. Coffee is our life.”

Unlike producers of commoditie­s like oil and gas, coffee farmers have long been at the wrong end of the value chain, receiving only a small fraction of the retail price of their crop.

Now, a slump in global coffee prices to their lowest in 13 years raises questions about whether it’s worth growing beans at all in some of the traditiona­l coffee heartlands of America, Colombia and Ethiopia. “It’s labour intensive and costly. We fear they could abandon the crop en masse,” said Desalegn Demissie, head of the Shebedino cooperativ­e developmen­t office.

At the other end of the chain, coffee has never been hotter.

Millennial­s in the West who grew up with Starbucks drink lots of it.

But growers worldwide have warned coffee company heads of a “social catastroph­e” should they not raise farmers’ incomes. In a letter last year to Starbucks, Jacobs Douwe Egberts and Nestle, a group representi­ng 30 countries said there was a risk farms would be abandoned. –

 ?? Picture: REUTERS/Maheder Haileselas­sie ?? HARD AT WORK: Workers dry red coffee cherries at the Tilamo cooperativ­e of Shebedino district in Sidama in Ethiopia. Coffee bean farmers have long been at the wrong end of the value chain.
Picture: REUTERS/Maheder Haileselas­sie HARD AT WORK: Workers dry red coffee cherries at the Tilamo cooperativ­e of Shebedino district in Sidama in Ethiopia. Coffee bean farmers have long been at the wrong end of the value chain.

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