Saturday, March 26, 2011

High Coffee Prices

According to the March 8, 2011 edition of the Wall St. Journal, a headline reports 'Arabica Coffee Prices Near a 14-Year High'.  Bad weather in Central America and Columbia have kept prices high with Arabica rallying 46% over the past six months.

Obviously, high coffee prices are good for Honduras where coffee is a major export crop.  My question though, is how much of the higher prices will actually benefit small farmers and producers and trickle-down into the wider economy as a whole?

1 comment:

Laurie Matherne said...

I know that more workers are needed in the coffee fields because the price is high, more is being harvest that may have been left to fallow. That's good for laborers who want to work.