Productivity improvements have changed the cost structure of the coffee bean industry, leaving many traditional growers in the red. A McKinsey study suggests that they go upscale, diversify, or get out.Odds are that your morning cup of coffee started life as a net loss for the farmer who grew the beans. Coffee growers have long struggled with fluctuating prices, national politics, and capricious weather, but today's crisis stems from deeper structural change. Few countries today can boast that a majority of their growers make a profit, and the exceptions generally have the largest and most diversified coffee industries. Productivity improvements from big coffee producers in Brazil, as well as competition from efficient new entrants such as Vietnam, are erasing many growers' margins-especially, as the chart shows, in the Americas. The article concludes by saying that some coffee growers must have to exit the industry - easily said,hard to digest and much more hard to make it happen.. Life is complex..
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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld "All views expressed are my personal views are not related in any way to my employer"
