tv The Cost of Everything RT November 15, 2023 9:30pm-10:01pm EST
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jen, there's also been concerns about gaza and the ongoing bombing and the complicity of the united states and other countries participating the apex summit. lot of different voices raised here at the demonstration. i'm so saying that my congress and my president for supporting the violence is going on. i can see that people have gone. so right now that's on the level of genocide and ethnic cleansing. where here while people are being slaughtered and gaza and palestine babies are being slaughtered and massacred, these people are coming here to make money over the interest of the people. so today we're coming here to say people's over profits. and that's the news. this time i will be back with more updates on the top of the i see you again. the
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coffee is one of the most popular non alcoholic drinks in the world believed to have originated from if you will be a coffee cultivation began in the middle east and by the 15th century. coffee houses were common throughout turkey, persia, syria, and a ravia. today, coffee has grown in more than 70 tropical countries and enjoyed everywhere. it is the 2nd most export, a commodity in the world after oil. and today, a simple black cup of java has now turned into an elaborate specialty drink with various flavored syrup, splendid ice nitrile brewed top with foam and whipped cream. so what makes coffee so desirable? i'm because the i and you're watching the cost of everything where today we're
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going to be breaking down the ins and outs of the coffee industry. the coffee is a popular beverage that many people enjoy for its taste and energizing effects of caffeine. now there are many types of rows to choose from, allowing people to find the perfect coffee to suit their taste. many people also rely on coffee as a source of caffeine to help them stay energized and alert throughout the day. now, coffee has grown in more than 50 countries around the world, but the majority of coffee beans come from brazil, vietnam, and columbia. and the cost of producing coffee varies from country to country, but it typically costs between $0.50 to a dollar per pound of coffee beans. the cost of producing coffee also varies depending on the type of being. the radical coffee beam is the most popular type of coffee being and it typically costs more to produce. then the less popular robust
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of coffee being and the coffee means at this point is a greenish looking beam where it is then packed and shipped to the consumer country . the largest consumer is the us followed by here. and once they arrive, the beans are then roasted roasters, 5 the bulk coffee, and bake into a margin to re sell it to the companies that distributed like starbucks. so for a typical pound bag of premium coffee that sells for $15.00, you have about $4.00 that goes to the retailers who shelf it sits on. then you have the roast, or if it takes about $2.00, transporting the rose to beans, cost about a $1.50. and meanwhile, in the roasting process, you lose about 15 to 20 percent in weight as the moisture is removed from the green beans. so that adds about $2.50 to the price, and you have the $4.00 per pound for the ra beams in the end. so the coffee
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business is actually quite a slim margin business, as coffee is considered a basic commodity. and there isn't much differentiation. the differentiation comes at the brands level where you have giants like starbucks baking in a brand premium for their coffee, which allows them to charge more. and coffee prices depend entirely on supply, rather than demand. demand tends to be relatively elastic. however, supply can fluctuate due to weather and harvest, and with global warming, many african countries may no longer be able to produce coffee at all. the production might actually move southward, but it is difficult to tell of temperatures, rainfall and swell chemistry will be amenable to the plant. in 2023, the price of the robust a coffee has already risen sharply by approximately 30 percent as the longer rainy season and hotter summer has effected its production. coffee prices are also linked
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to fuel prices because of the cost of shipping and transportation. when fuel prices go up, the cost of shipping also goes up and affects the final commodity price of coffee. surprisingly, finland tops the list as the world's biggest coffee drinker on a per person basis. the average fin drinks nearly 4 cups a day and coffee is so popular and feeling that to 10 minute coffee breaks are legally mandated for finish workers. this is followed by luxembourg, the netherlands, sweden and denmark, where they have a deep respect for the art of brewing and roasting. and the strength is highly prized in scandinavian countries where long dark cold winter's make it highly prized. and it's interesting and funny to note that coffee is growing and some of the hottest places in the world, only to travel and be consumed in some of the coldest places in the world. and now
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today we're joined by coffee expert, jonathan. it's a very owner of paper playing coffee co, and so jonathan, the cost of coffee has shown fluctuations over the years. could you shed some light on the factors that influence these price variations and how they impact coffee grows and consumers like, uh, yes, absolutely. i'd be glad to, um, so just a little background on who i am. i'm actually, i'm jonathan at your very my, i own paper playing coffee company in new jersey. but i'm a 5th generation, columbia and coughing, grover, we've been growing coffee and columbia now for a 160 years about we've had our farm in our family for about 80 years. and so aside from being on the roasting and here in the united states, we're on the production and as well in columbia. and so the, the price of coffee is really kind of dictated based on commodity and coffee is the
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2nd most traded commodity in the entire world. and so you can imagine that, you know, any change based on demand um, or production will add or take away from that commodity. just as an example, a couple years ago, brazil who's the number one producer of coffee in the world. i had a, a freeze that affected the millions of pounds of coffee and that caused a huge spike to happen within the commodity price, which drove the price of coffee up. coffee is a beloved beverage consumed worldwide. can you discuss the regions or countries where a coffee consumption is experiencing the most significant growth and what cultural or economic factors contribute to this trend? oh yes, i love to. um, so yeah, so coffee, like i said earlier, is the 2nd most consumer commodity in the world. i think 16000000 cups are consumed in new york city alone. so, so, you know,
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you see the circulation happen and some of the biggest increases that we're seeing in coffee consumption are in china, india and mam. um, a lot of that has to do with a lot of the younger generations leaving their home and going to study abroad either in europe of america, south america, or just any really, any coffee, consuming country in the world. and then bringing that back and, you know, just having and although they grew up in a consuming country, they're kind of going and immersing themselves in these, uh, these cultures where it's coffee, heavy and not to mention that there's also the, the social media aspect of it there's this really beautiful culture around social media and taking pictures of glossy art and different coffee drinks. and so i think a lot of people bring that back. and that's why we see these huge fluctuations
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happening. and china, india and vietnam, as well as economic reasons you're seeing the economy in those countries rising. so we know a lot of people are, are seeing a little bit more money than usual. and so you're saying that change and now fair trade and sustainability have become important considerations for coffee consumers . so what efforts are being made within the industry to ensure a fair compensation for coffee farmers and to promote environmentally friendly practices? uh, yes, absolutely. i mean, a lot of people are starting to pay attention to what they consume and how they consume it. so i think speaking as far as north america, and there was this whole farm to table experience where people you wanted to know where their food was coming from. you know what farm they wanted a, how it kind of like this inter personal connection with where their food is manufactured and uh, adding to that obviously like coffee in many cases,
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finishes the meal or, and it begins many people's day. and so that level of connectivity was sought there as well. um, you know, for most people, coffee is just grown high up in the columbia mountains and picked by a beautiful moustache man and his trip. and trust the donkey by the truth is much more than that. and so, um, uh, for the certification such as fair trade, really let us as consumers know that every part along the way from a grower to a co op, to export or to in order to roaster every single person along those way. there every single entity along the way has been fair trade certified and kind of helps, i guess ensure that there is a little bit more a sustainability, um and equity. so it has fair trade. i mean, a more costly coffee. it will make
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a difference in pricing, so we are a fair trade certified company and we will pay a percentage or we, we pay a certain amount of cents per pound that we purchase per year. and so obviously like adding to that. so if we have to kind of like add that into for the consumer. um, but something that's a bit tricky is that if somewhere along the way in that chain, if it were one of the entities that touches that coffee isn't fair trade certified . then the chain is ruptured and that coffee can no longer be listed or sold as fair trade certified. and so it doesn't necessarily mean that it's, it's a better coffee. it just means that the farmers and facilities where these copies are passing through. um, are ensuring a better quality of life for the people that, that work for them. these days,
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the specialty coffee market has shown remarkable growth. what differentiates specialty coffee from conventional coffee and how do the cost and quality compare between the 2? yeah, i think the main, one of the main differences between specialty coffee and i guess traditional coffee or commodity coffee is that. so it's kind of a combination of everything that i stated were really paying attention to who we deal with, who were working with. um, our goal, at least i mean nice speaking for our company paper playing um our goal is to offer a quality over quantity. um and i think that resonates with a lot of people. um, and in many ways because we have these direct relationships in direct for our partnerships with producers. um it, the commodity price doesn't necessarily affect us in a great way. i think the, the biggest people who are affected by commodity fluctuations are the giant
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corporations who are just really pumping out a commodity coffee as much as possible. i mean, obviously the goal is to, you know, provide profits for their shareholders. and in order for them to do that, they have to drive prices down so they can continue to keep their profits up. thank you so much, johnson, but please stick around. coffee experts, jonathan, it's a very, we'll stay with us right after the break. and when we come back, how has a copy market grown in countries like india and china will have more after the break the
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qual, coffee is extremely popular in the west. it is still growing in popularity and others like india and china. although india's consumption of coffee is miniscule, with great, had room to grow, it is a significant producer of coffee with, of course, the majority being exported. because although coffee has a long history in india, it isn't considered a native beverage in the region. the legend is that a st smuggled 7 green coffee beans to india and the 16th century and planted them in south western india. this is where a coffee took root, but not all of india has adopted coffee culture. northern india, in particular,
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has remained loyal to tea. coffee in india is consumed as filled her coffee or instant coffee. and these drinks involved the use of copious amounts of milk. traditionally in india, if it's not milky strong, sweet and hot, it does not qualify as a good cup of coffee. coffee in india is shame grown in the force of the west or knots within abundance of other foliage. and this allows the coffee to, in by the flavors of the surrounding plants to the overall coffee market size in india was approximately $1600000000.00 in 2020. and it's projected to grow to form $1000000000.00 by 2027. many india and consumers are embracing international coffee, cafe culture with cafe chains growing rapidly. there has been a significant shift in the coffee drinking culture in india over the last few years . and there are a lot more craft roasters working with coffee farms in india to provide high
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quality coffee training and information. and this trend has been identified in other majority tea drinking nations such as china or spending time in coffee shop, often represent new lifestyle choices for young urban consumers. china as total copy consumption grew at an annual rate of 16 percent between 2008. and 2018 significantly outpacing the 2 percent global average. in terms of coffee consumption per capita in china, it is still well the high european countries and the us standards. the average chinese concerns only 9 cups of coffee a year in 2021 compared to americans who consumed 3 cups of coffee every day. however, international chains, like starbucks, have rapidly expanded their footprint in china, hoping that it would follow the same trajectory as japan's coffee adoption. while
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japan was primarily a tea drinking nation in the past, it is now the world 4th largest consumer of coffee following the us, brazil and germany. in the us, the most in vote is demographic of coffee drinkers is actually those 60 years or older. around 72 percent of americans score 60 or older drink coffee every single day, but only about 47 percent of those who are between 18 to 24 years old. drink coffee regularly making it the least coffee craze demographic in the country. so for this and more, let's bring in again, coffee expert jonathan, it's a very owner of paper, plain coffee co, a. so jonathan coffee is often cuz referred to as a commodity. what role does a global coffee market play in determining coffee prices? uh, yeah, absolutely. that's a great question. i mean, a perfect example is,
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you know, what happened. it actually happened right in the middle of the dakota depend on it . and we saw brazil's production lesson because of a freeze, and brazil being the number one producer of coffee in the world. some you know, for, for this particular reason was get bought to produce less. and so that was enough to drive the price of commodity coffee weight um and so you know, brazil is the number one producer of coffee followed by the vietnam and columbia and indonesia. those are kind of the foremost for production countries in the world . and so any change in, in production, in those countries, we'll see a fluctuation with that. but um, you know, geo politics obviously has a hold on it as well. um, you know, if there's any, any changes in, in trade tariffs um, you know, you'll start seeing either
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a bigger demand or lesser for demand, which will change the commodity price of coffee. so jonathan, coffee is often referred to as a commodity. what role does the global coffee market play in determining coffee prices and how to geo political and economic factors influence these dynamics? but yeah, i mean, uh, we're seeing that right now with um, i think china is appropriate example. people are really talking about the chinese cultivation and consumption of coffee. i mean, you know, you have a population of 1200000000, almost 1300000000 people and who primarily consume t who are starting to consume more coffee. and so i mean just doing math on that, i mean if one percent or 2 percent of their population started one percent more started to consume coffee, that's enough to, to really cause kind of some damage globally but,
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but i think they're starting to counteract that. and um, they're actually creating growing regions for coffee in china as well. so you're starting to see these drawing regions happen throughout the coffee both that weren't existing before. i think they're actually even starting to grow coffee in some parts of california, which is really interesting because up until recently, hawaii, hawaii and puerto rico were the only places within the territories with the united states that were producing coffee. so i mean, and it's, it's going to be really interesting, the next 101525 or even 50 years of coffee because, you know, there's a lot of factors that we have to weigh in. um, we have to obviously weigh in climate change and how that will affect the curling production regions. and whether or not that will just change where our regions are really growing coffee. and so, i mean, i tried to remain optimistic especially because like i said, we,
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we operate with specialty coffee. so our goal is to have direct relationship with our trading partners. and, you know, really provide a quality in innovation with coffee production. uh, you know, placing an emphasis on, on fermentation on drying on varietals. so it could be really neat. and we might even see kind of a exploration among the species of coffee. um, even though a radical and or boost the our, our, uh biggest um productions right. now we might see more of the america huge, you know, it is um, or even maybe a larger emphasis on the specialty varietals with in reduced stuff. as coffee continues to be a staple in many cultures. how do you envision the future of the coffee industry, including the potential for new growing regions and innovations to meet the rising demand while maintaining quality and sustainability?
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uh yeah, that's one of the things that i'm, i'm, i'm really interested in being as though it is just uh, we've seen the price of, of coffee really fluctuate within the past 30 years with kind of a downward trajectory. as far as the costs goes for the farmers side. and so, you know, even the pioneers of a specialty coffee in the fine years of 3rd wave coffee when they were talking about ethically growing coffee. one of the main then central tenants of it was to be able to provide more prophets and, and a better price for the coffee producer. and so, you know, a coffee in and of itself just by the seed can only produce so much. and so where's, you know, we obviously started to see now coffee tourism, which is beautiful. i mean, speaking has a colombian american, if you see a lot of clamping sites that are,
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that are cropping up around colombia and coffee farms, which is beautiful because people can have this like really wonderful experience like one that i had as a child growing up when we would spend our summer's on my grandfather's coffee farm where, you know, i wake up at 5 in the morning. um, you know, i'd help note the calls, they just drop a basket on to me and i go and i, i'd help the workers pick coffee. and to me, um that that experience is, is one of the kite and so, you know, when people are wanting to have this experience, especially people who have a love for coffee. i can imagine a better way of doing that. and then actually going and picking the coffee, trying the coffee and even roasting the coffee and having that experience. but the goal is obviously to return more money to the farm to the farmer. so that way we kind of promote we continue to promote agriculture, but other than that, i mean people will start to leave the fields. today,
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coffee has evolved beyond beverage into a lifestyle. so how are a coffee seemed experiences such as coffee tours, tastings and coffee feed merchandise contributing to the coffee industry gross and diversification? yeah, no, but i mean like, you know, as you see, you see these, these coffee experiences throughout the world. i mean, um, panama offers some really great experiences if you up as well, is as wonderful a coffee origin experiences. i believe kenya does as well. uh, i mean really, if you search and you know, the best way to do it is to like, you have a favorite for a favorite origin of your coffee. and then, you know, it's, if it's rolando, if it's board will be, um, if it's indonesia, it just look it up. there's more than likely going to be a farm that's offering some sort of experience where you can go firsthand and, and see how coffee is, are being process. i mean, especially if you look back at, if you will be a said to be the birthplace of civilization,
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but even the birthplace of, of coffee as we know it. thank you so much, jonathan, for all your time today. now as a copy, industry continues to grow and can help a wonder are people addicted to coffee and has caffeine addiction become normalized? caffeine is the most widely used. so psycho act as substance in the world where more than 80 percent of adults regularly consume caffeine. caffeine affects the same parts of rain as cocaine, but in completely different ways. and there is evidence for caffeine withdrawal symptoms such as caffeine locks adenosine receptors which can cause the body to suffer from headaches, fatigue and arid ability. if caffeine intake decreases but caffeine use is classified as dependence, not an addiction. and this makes coffee the perfect frank. because people become dependent on the wake up effect to function in the mornings and with prolonged use
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will require higher and higher amounts to achieve the same effect. an average cup of coffee contains about a 100 milligrams of caffeine. too much caffeine can cause headaches and migraines, and individuals who metabolize caffeine slowly may also have an increased risk of heart attacks, elevated blood pressure and can worse and excite e insomnia, and cause jittering us and heart palpitations. i'm christy, i thanks for watching and we'll see you right back here next time on the cost of everything. the name of the send him the big i want of the i see it in and me say guess i am all what had a little form is all i thought of it either i want says and stop. i don't like that is somewhat of the media you're going on. i'm glad you know you got one way just
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