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rjett | 8 years ago

Cost of production from variety to variety at this farm is going to be fairly consistent. The reason coffee has traditionally been relegated to developing countries is because of labor costs. To get a good harvest with quality in mind, farmers typically have to do several passes through the fields of coffee trees to select the coffee cherries at their optimal ripeness. Altitude also factors into quality as well, since coffee that slowly ripens due to cooler temps typically translates to a better product. Farms at high altitude can have some pretty gnarly topography.

Coffee farms where attention to quality is less important and raw output more important will plant trees in full sun, nice conventional rows, and then send mechanical harvesters down each row to strip pick the trees, harvesting cherries that might range from under ripe to perfectly ripe to over ripe. Yields might be higher and labor costs lower, but quality suffers and these beans are typically sold in the commodity market.

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ianai|8 years ago

The need for labor screams subsidy. This is an area where a subsidy could increase labor pool and decrease imports/deficits.

lotsofpulp|8 years ago

I think it screams the need for price increase. If not enough people want to purchase coffee at the price to support local labor, then either sufficient demand does not exist or a new method of performing the laborious task needs to be invented.

The reason labor is cheaper in other countries is because those people have no other options, and I see no reason for taxpayers to subsidize a luxury good.

pyrale|8 years ago

Why exactly should a luxury good be subsidized ?

If the importance of providing people with a way of earning money is so important, why not just cut the middle-man and provide life income ?

chiph|8 years ago

Or simplify the H2-A (temporary agricultural worker) visa process.