$500 a pound coffee? Yes, the very best coffees these days are selling for astronomical prices. The $500/lb lot (from El Injerto in Guatemala) was a record, but the Wall Street Journal recently reported on the rising auction prices for so-called Third Wave coffees:
Commodity coffee prices are set by the New York C Price (which, today, is around $187 per hundredweight). But market demand is increasing for the highest quality coffees, those scoring in the upper 80s and above 90 on a 100 point cupping chart. And prices for these beans are rising fast.
Yet, The Guardian says of these new craft brews: “it’s pricey, but farmers aren’t getting rich.” Guatemala is ground zero for the Third Wave coffee boom, and while it is true that farmers aren’t getting rich, research Bart Victor and I are conducting shows that these mostly Maya small holding farmers have benefited from the market boom–and have high hopes for coffee. In my new book The Good Life, I look at the lives of these coffee farmers
Still the market is imperfect, and small farmers growing quality coffee often have a hard time selling it as such (rather than to middlemen, who mix it with undifferentiated lots). As The Guardian article reports, “those hoping to change these industries are betting on a mix of direct relationships between farmers and manufacturers, and new business models that help to distance specialty products from commodity prices.”