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Higher Coffee Bean Price by Insane Idea?


Higher Coffee Bean Price by Insane Idea?




Must and will coffee price climb higher and higher? How? The following explanations are the aswer. All coffee stakeholders i.e coffee traders, roasters, marketers, cafĂ©, resto, retailers, bank, barista, gourmet,  government, exporters, coffee users, coffee lovers etc can receive advantages from coffee word.  But, what will happen if coffee growers substitute their coffee plant by different commodities? It has happened in large areas at us. Many coffee growers has substituted their coffee plant by other commodities such as rubber tree and oil palm. 
          The coffee bean price has hit the history price, and will likely climb higher and higher.  Why? The answer is seeked in “supply-demand law”.  Whenever supply is less than demand, the price will go up.  This is a classic economic law, and is true. Why demand is more than supply?  The answer:
1.  The supply decreases while demand is stable
2.  The supply decreases while demand increases.
3.  The supply increases while demand increases more rapidly.

          Number 1 and or 2 are now happening. Why? Climate change? Whatever the causes could be, we need to solve the problems.  We surely cannot control the climate.  What we can do as soon as possible is to increase coffee production which can be done.
          How can we increase coffee productivity? The answer : let coffee price goes up higher and higher!!!  Is it an insane idea? Although coffee price at international market is already higher than ever, the coffee price at coffee growers level is still low, and the coffee growers receive only 5% of the entire coffee value.  The current price is too low that coffee growers cannot maintain their coffee field in order to increase higher level of productivity let alone the existing infection of Coffee Berry Borer Hypothenemus hampei is very high. It means, we cannot expect an increasing production.  There must be something to do.  The first, coffee price at coffee grower level must increase two times of current price.  The impact is coffee growers have then better livehoods and have money to maintain their coffee field, and afterwards coffee productivity will increaseThe second, to establish coffee auction at subregency level.  It can be a breakthrough.  The price will be more transparant.  At auction place, coffee growers can decide to sell if they see a fair price.

Kind regards,

Dr. Sabam Malau
NSCF Chairman

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