27 Feb '13, 9pm

Sustainability Q&A W/ Colby Barr, @svick & Chris Bacon @hneuschwander @vervecoffee @cuesa @bluebottleroast

Sustainability Q&A W/ Colby Barr, @svick & Chris Bacon @hneuschwander @vervecoffee @cuesa @bluebottleroast

: In Rwanda this year, I bought through a supplier that really understands the market and they have bankers that work for them that hedge on behalf of all of their farmers. If you didn’t hedge this year, you lost money. Why? During the harvest, the C market price was high. It’s the cherry price, the price cooperatives or the private mills are paying farmers for their cherry. A little later, it’s export season, when the processed coffee is ready to be shipped, and suddenly lots of people are buying coffee, paying lower prices. These are bigger buyers who are market driven [i.e., not paying quality differentials]. They are paying lower prices to the mills and coops than the mills and cooperatives paid for cherry. So, if you didn’t hedge during the harvest, you’re gonna sell your coffee for less than what you had to pay the farmer for the cherry. Then the coop as a whole is g...

Full article: http://sprudge.com/san-francisco-sustainability-panel.html

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