Coffee producers tempted by multinationals

 Breaking News
  • Year of Considerable Progress For Dairy Crest Dairy Crest, the UK dairy group, increased revenue by 10% to £456.8 million and adjusted profit before tax increased by 2.8% to £62.3 million for the year ended 31 March 2018, compared with the previous year. Dairy Crest’s Cheese & Functional Ingredients business increased revenue by 8.8% to £277.2 million while revenue at the Butters, [...]...
  • Edrington Unveils the New Home of The Macallan Edrington, the international premium spirits company, has revealed the new distillery and visitor experience for The Macallan brand. The new distillery and visitor experience is located on the stunning Easter Elchies estate in Scotland, which has been home to the leading luxury single malt since 1824. From humble beginnings, the brand has risen to become [...]...
  • Nestlé Strengthens its Research Capabilities in Switzerland Nestlé has announced changes that further strengthen its research and development operations, the largest of any food company worldwide. Nestlé will bring together its two scientific discovery units, the Nestlé Research Center and the Nestlé Institute of Health Sciences, to build one impactful organization, Nestlé Research. The combination of two world-renowned research facilities with highly [...]...
  • Algaia Receives €4 Million Boost Algaia, will accelerate development and install a new specialty seaweed extract production unit at its Lannilis (Brittany-France) manufacturing facility dedicated to specialty algae extracts. The company’s main shareholder, Maabarot Products, has injected an additional €4 million in equity to support further expansion of the production facility and innovation center located in Saint-Lo (Normandy-France). Algaia works with local [...]...
  • Smarter Factories – Safer Working In food produce environments and packhouses, the benefits of automation when it comes to workforce health and safety are uncontended. From eliminating arduous and repetitive tasks to working uninterrupted within inhospitable chilled settings, robots are most certainly the future. Case loading specialist Brillopak and industrial automation pioneer Omron explore how smart robots, hardware and software can [...]...

Coffee producers tempted by multinationals

July 02
10:22 2011

Coffee producers in Central and Latin America are being tempted away from traditional local cooperatives by multinationals as they look to cash in on strong demand for coffee beans.

With demand high and supplies low following two poor harvests, multinational trading houses such as Nestle SA and ED & F Man Holdings are offering to pay cash above that which the producers would receive through the cooperatives.

The local cooperatives were formed a number of years ago to bring together the production of individual farmers into one group, which gave them the opportunity to receive a higher price and a more influential voice at the bargaining table.

Farmers agree months ahead to sell their produce to the cooperatives at a fixed price which then sets a price based on the arabic coffee futures traded on the ICE Futures exchange in the US. 

Alvaro Gomez, the general manager of the 6,200-member Coocafe cooperative in Costa Rica, said “For cooperatives, it’s very difficult as we can only compete with a small amount of capital; we don’t have the same economic power as these big companies.”

Nestle has defended its position with Jesus Navas Flors, Nestle Mexico’s commodities purchasing manager, telling the Wall Street Journal that the company is “continuing to increase our direct purchasing [from farmers] in order to have a better relationship.” 

Coffee futures are up 53% over the last year.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 1, 2018Gluten Free Expo Slovakia
  • June 3, 2018Vinoble
  • June 4, 20188th WSO World Congress on Stevia Tasteful 2018
  • June 17, 2018The Excellence of Italian Food and Wine (Bellavita Expo)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here