COOPERATIVE BORN FROM THE HEART OF THE CATHOLIC FAITH

The Harvest Is Plentiful, the Laborers Few... therefore pray earnestly to the Lord of the harvest to send out laborers into his harvest.” Matthew 9:35-38

Would you sell your work at a price lower than what it costs you to produce it, or would you willingly enslave yourself to fruitless labor, locked into the fluctuations of the NY Stock Exchange?

To provide some context, the cost of producing a pound of coffee in the field is approximately $1.65, while the New York Stock Exchange has averaged a value of $1.61 for coffee over the last 5 years. Would you sell your work for less than it cost you to create it? Would you purchase an iPhone for $700 and then sell it for $650? The answer to these questions is undoubtedly a resounding 'No!' Never!

However, this is the unfortunate reality that farmers face year after year. They are compelled to repeat the same mistake until they deplete their own resources, all in the pursuit of a business that may 'seem viable' or 'seem good,' but in reality, is not, The stock market is not the right place to do business with coffee.

Cash liquidity and usury often go hand in hand, especially in financial transactions. In such dealings, it's common to approve loans easily and charge interest rates that eventually turn into usury. The Catholic definition of usury is: 'The charging of interest rates higher than those authorized by the law or state administrative regulations for money loans.'

Farmers frequently find themselves compelled, not just once, but repeatedly, to sell their entire harvests at prices below their production costs. This is primarily due to a lack of liquidity. Without adequate liquidity, they cannot cover the expenses incurred during the coffee harvesting season. This season falls during the first and last quarters of the year when coffee beans are at their peak to harvest.

A farmer's expenses can quickly add up, including costs for road repairs, social security, fuel bills, and more. During this time, they may accumulate bills amounting to as much as $60,000 in a single month. There is an urgent need to obtain this liquidity to meet the immediate expenses associated with coffee production, which must be addressed at that precise moment.

This issue is prevalent in Latin America and has led to significant waves of migration. It forces individuals and families to break from their roots and abandon generational work. Recently, we had a conversation with our cooperative in Nicaragua. When we secured a new batch of 27,000 pounds of coffee, the market price was $1.50 per pound on the commodities exchange, while the cost of producing a pound of coffee stood at $1.65. As you can see, this difference represents an obligatory social loss of $0.15 per pound.

If you multiply this loss by the total weight of 27,000 pounds, it amounts to a staggering $4,050. Farmers typically accept this money, but it results in a deficit in their ability to reinvest in their farms and sustain their agricultural activities. It creates a financial erosion that becomes impossible to recover.

Undoubtedly, illegal immigration to the United States is a painful option for Latin Americans. However, it's important to acknowledge that a portion of the responsibility for this phenomenon lies with us. If we were to pay a fair price that goes beyond mere compensation, farmers like those in the Good Coffee Cooperative would be content to remain with their families, continuing their coffee production in a just and equitable manner.

We're delighted to have taken the steps we have, offering these farmers the opportunity to purchase new coffee batches at prices that reflect the true value of their hard work, John Folino through Guadalupe Roastery offered to pay nearly twice the value of the New York Stock Exchange to continue strengthening the Nicaraguan community. Thanks to you and these efforts, families remain united with the farms they have cultivated for generations. May God bless them all.

Brad Fassbender | Founder