Help Build The TreeHugger Fair Trade Organic Coffee Index
by Lloyd Alter, Toronto on 01.24.07
Whenever we show a product from the UK, we get complaints from America that it is overpriced. Usually this is because of what economists call Purchasing Power Parity: things should cost the same all over, but currencies are often over or undervalued, distorting the prices. It could be wages are lower, the rich are richer or the rents are higher, but things have different prices around the world. The Economist magazine has studied this for years with their Big Mac Index, comparing the price of Big Mac's around the world, as one of the few things that are so ubiquitous that it is a useful standard. Recently Australia's Commonwealth Bank updated the concept with the iPod Nano index which determined that iPods are cheapest in Canada, most expensive in Brazil. But enough of Big Mac's, even the Economist knows fair trade and organic products are gaining in popularity. We need a new, TreeHugger Correct standard on an item that we think is available around the world: why not Fair Trade, Organic (FTO) coffee.
We find that most of them are similarly priced here; What does it cost where you are? Let us know the size, price, location and currency by sending us a comment. Or, you can view the Google Spreadsheet here and enter it yourself. (hit the (edit here) link to the right) You can convert local currency to US$ here; or on the link on the spreadsheet; there is also a converter to determine the local price in pounds if you are buying 500 grams or by the kilo. We are using a price found online for New York City as the base. (picked off the internet so correct me if I am wrong)
So enough of Big Macs and iPods. Help build the TreeHugger Coffee Index and determine where the best place to get a bag of Fair Trade, Shade Grown, Organic Coffee.
Thirsty for more? Check out these related articles:
- 25% Efficiency: SolFocus Introduces New Concentrating Solar PV Product
- Jet Engine Wind Turbine Design Could Halve Wind Power Electricity Costs
- 1,280 Megawatt Solar Power Plan Unveiled by Los Angeles Mayor
- 600,000 Square Foot Solar Power Rooftop Completed by Southern California Edison
Some Prices for Germany (http://www.gepa3.de --> Shop):
- Café Columbia, organic+fair: 13.96 Euro/ kg
- Café Monte de Oro, Costa Rica, fair: 13.16 Euro/kg
- 75% Arabica, 25% Robusta, Tanzania, fair:13.96 Euro/ kg
- Café Aymara, organic+fair: 12.98 Euro/ kg
- Espresso Caffè Crema Bohne, organic+fair: 16.95 Euro/ kg
- Espresso, africa, organic+fair: 15.96 Euro/ kg
...
I was just in Boston. Everything costs much more in Boston (even a McDonalds buger, I presume) than it does here in semi-rural-coastal-Florida. I guess prices would me more similar in southeast Florida.
The point being, perhaps the US is large enough that it would make sense to split it up additionally, since Purchasing Power Parity differs from state-to-state as well. (Think of cost differences between Houston, Tx and NYC)
LA: I absolutely agree. That is why I have a city column. send in for various cities of the US!
Wasn't able to edit the spreadsheet directly, so I copied it, entered my information, and here's what my line should look like:
Halifax Canada 9.99 8.46 52.91% Alec Munro
I may have to update that price after checking with some other local retailers.
I thought this would be a good time to try out GoogleSpreadsheets but couldn't get it to work. Hmm.
$10.99 here in Winnipeg for BlackPearl (Mexican) at an indie grocery store. others: $10.50 for Peruvian, $11 for Sumatra, $10.75 for Ethiopian. Those are Fair Trade Organic but may not be bird friendly. These are the cheapest prices I've found and there are more expensive prices (for the same coffee), up to $18 as the most expensive.
I'm the organizer for a new regional fair trade coalition. People are interested to have this data boiled down for them and this is the sort of information I like to have handy for distribution. I think this idea is interesting and one which I'd like to contribute to and discuss.
Elizabeth Gilhuly
Organizer
DC Make Trade Fair Coalition
www.FairTrade.Meetup.com/3
www.myspace.com/DCMakeTradeFairMeetup
MakeTradeFairMeetup@email.com
Fair Trade seems to come in a lot of grades here in Vancouver, Canada.
We buy fresh coffee from Ethical Bean, locally roasted, TransFair Certified and organic, for about CAD$15 from a coffee shop or CAD$8.40 in 5 lb. bags for the office straigfht from the roaster.
You can also get TransFair beans from Costco (Kirkland brand) for CAD$6/lb in a 2 lb bag. Costco is a membership only buyers clube, like Price Club.
Finally, at Safeway on Cambie and 10th, we can buy TransFiar coffee for CAD$6-8. At the same Safeway, you can buy non-fairtrade, non-organic coffee roasted by Starbucks for CAD$9.
I think you're missing the entire point of the Big Mac (and, I suppose iPod Nano) indices. They depend on the free market for most of their inputs - the meat or the grain for the bun may get direct or indirect government subsidies, but the shipping, labor, marketing, and other overhead costs are all tied to the free market. "Fair Trade" products are by definition priced at far more than their fair market price. The difference in value is essentially how much guilt First World coffee drinkers are willing to bear, not what the market will bear. Fair Trade certification also has nothing to do with the quality of the coffee, and conversely the price of "free trade" coffee is not tied solely to labor costs. Indeed, some coffee growers are paid more than their Fair Trade peers but aren't eligible for the label because they work on plantations, not cooperatives.
Producing a Fair Trade Coffee Index may be an entertaining exercise, but it won't help with your search in finding a useful way of determining undervalued currencies.
There's an article here about fair trade coffee. I've ordered some before. It's from the Thanksgiving Coffee Company.
I'm intrigued by this whole line of conversation. Ruben and Vicky make a very significant point that there are more than exchange rate forces in play. That's true of a lot of economic analysis, which assumes "perfect competition" and doesn't take market distortions into account.
Nice fresh roasted FairTrade organic coffee from Michigan,U.S.A. like $12.00 a bag but as fresh as you can get.
www.javariverroasting.com
here in kona, big island, a large American coffee industry community, the typical bag of 1/2 lb. of organic, free trade (grown and processed in Big Island) is typically $15 per 1/2 lb.
worth every penny, if not more....