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The
retail price of roasted coffee dropped only 15% from
1999 to 2003, while green coffee prices fell by about
50%.
USA Department of Agriculture and TransFair |
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Price setting
The price per pound of coffee cherries received by RECOCARNO
farmers is typically 50 per cent higher than the price received
by farmers outside the co-operative. Before the existence
of RECOCARNO, prices paid by the intermediaries could be less
than a quarter of the current rate. RECOCARNO has had a widespread
impact on prices for coffee in northern Haïti -- not
just for the Fairtrade market.
Coffee producers have historically always been forced to
accept the price set by the single traditional exporting company
of northern Haïti but,in 2000, RECOCARNO became a 'price setter'
instead of a 'price taker', in a number of areas including
Dondon.
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Critical Mass
RECOCARNO had emerged as a viable market competitor and the price
it was able to pay was up to 50% more than its competitor, which
made it the most attractive purchaser throughout most of the Dondon
area. The traditional exporter was forced to raise its price, to
the benefit of all producers in the area, not just RECOCARNO. RECOCARNO's
efficiencies, critical mass and access to Fairtrade markets has
therefore begun to correcting market inequalities to the benefit
of all small coffee producers in North and North East Haïti.
See also price volatity. |
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