California-Grown Coffee Is Becoming the State's Next Gold Mine
npr.org
npr.org
Just because someone can get a coffee plant to grow coffee in California does not mean the coffee will be any good. Coffee grows in a lot of places, really good coffee takes particular terroir to grow really well. E.g. low grown coffee generally doesn't taste very good and altitude alone isn't the answer. The combination between altitude, soil, climate(cold at night, hot in the day) makes the bean develop slowly and generates more flavour. This is not speculation, this is information that coffee agronomists understand.
So, it's totally ok for somebody to sell expensive coffee as a novelty. What is disappointing about this article is it extrapolates from a sale of 250 lbs of beans to a "Gold Mine", implying that other beans grown in California might be sold at a similar price. They won't be, because they will likely be very poor quality. With the extremely high costs of production of the coffee, it likely won't be profitable except as a novelty.
And it's not even just water, but temperature, soil, the whole works.
Glad to see my intuition seems to be on target...
So we are only talking about ~250 bags of coffee. Which is still nothing.
So 24 farmers harvested 250 lbs, all of it bought by the one roaster at $60 /lb. Coffee plants take 18 months before they start producing harvestable amounts of cherry.
In that sort of price range are some fantastic coffees - I struggle to see how something 4x more expensive could be that much better. My go to is Ethiopian Yirgacheffe which is a few dollars cheaper at NZ $17.50.
Edit: I didn't mean to compare Guatemala vs. Panama coffees, just noting the price range.
Importing water is easier than importing sun and heat.
https://www.vox.com/energy-and-environment/2017/11/8/1661171...
Still, I’m not ignoring your point, which is solid.
the problem with that is "what should actually be grown" has different answers depending on whether you value profit or feeding people.
We're also running into frequent water crises where politicians ask people to shower less while we dump 90% of the state's water on the ground.
It can only be a choice between making a profit and feeding people at break-even (feeding people while losing money is not sustainable). Beyond that, the profit signal carries useful information about what the people being fed would rather eat, while keeping in line with what is economically and environmentally viable.
The problem with the current situation is that water is mispriced, and mispricing, regardless of whether it favours suppliers or consumers, makes it unsustainable in the long run.
Sure, the water situation has gone up and down with the drought, but normally there's plenty of water. A lot of the almond orchards had to be scaled back during the drought, but when there's water they use it. It's a lot more sustainable than many other farming lands because it's not dependent on an underground aquifer that took eons to fill up or water piped in from somewhere far away except for the urban areas of course.
The question is whether there's enough water for both farming and huge cities. Cities can pay much more, so if water rights were transferrable, farmers wouldn't grow almonds. They would sell their water to cities and retire.
https://ca.water.usgs.gov/projects/central-valley/land-subsi...
The land in parts of the central valley has subsided by meters due to long-term groundwater depletion.
The question should never be "how much water to produce this" - but, "what value are we getting from the water" - if you are able to sell a cup of coffee for $5, then it's probably a good investment of that $0.08.
The water districts and utilities do most of the price setting, as I understand it. The water districts are largely controlled by farming interests who do not want pricy water.
This info may be out of date, since I work in a very different water market (East Africa), so if someone knows better please correct me.
https://www.economist.com/news/united-states/21647994-why-go...
Source: Lived in a water district for 7 years with some of the cheapest water in the state (sub $3 a unit) yet a water bill for a family of four with fake grass and small yard of around $180 a month. If we used ZERO water, the bill would have been about $120 in flat fees. We were subsidizing the massive avocado groves and other major agricultural producers in the water district. They brushed off our complaints and the fact that we pointed to neighboring cities with $40 water bills.
I would think it might not hold up so feasible for non-cash crops, but at first glance that seems pretty cool that you might be able to use reverse osmosis water for crops. I guess you just have to convince/get farmers to give up their cheap water ha.
[1] https://coststudyfiles.ucdavis.edu/uploads/cs_public/f2/0e/f...
[2] https://www.arb.ca.gov/fuels/lcfs/workgroups/lcfssustain/han...
7 ton / acre * $220 / ton - (435000 gallon / acre * $0.40 / 1000 liter)
$881.34 / acre
One variable we are missing is transport costs - that $0.40 is for generation, and transportation of water from the ocean to the central valley would probably be expensive.
Not to mention the milk that people usually add, which is even more water intensive
https://www.theguardian.com/news/datablog/2013/jan/10/how-mu...
https://sciblogs.co.nz/waiology/2012/05/24/how-much-water-do...
That's the retail price though, the grower doesn't see much of that.
Check the Netflix documentary "Water & Power", it gives a good reason to consider why.
Essentially, people trying to control the water.
California doesn't have a collective consciousness.
This is mindboggling to me. I don't think I've ever paid more than $5 for a cup of coffee.
This quote further in the article captures the reason why someone might spend more. Producing good coffee is actually more expensive than the market would lead you to believe. For some people drinking good coffee is exactly like experiencing a fine wine.
That said the best coffee near me is in the little market and it's both cheaper and vastly better than star bucks, I go there after Chess Club on a Saturday and review the games I just played, it's so good I would pay £5 (~$7.5) for that one cup a week because it's an experience not the caffeine, the rest of the time it's LIDL's Columbian instant (which is a damn fine instant).
Useful references: https://en.m.wikipedia.org/wiki/Wine_fraud
There's a little roaster in St Lawrence Market where I go and I pickup random bags of whatever coffees for fun, and they are extremely different.
Wine I've never been able to discern. I don't think coffee is in the same league at all.
I would phrase it differently.
Americans have become conditioned to accept high prices for drinks. For lots of reasons, but mostly because they are real money makers in almost every place that sells any sort of drink.
I mean, it costs up to $6 for a bottle of kombucha, and I know people who go through a couple of those a day. The next logical step is a $20 coffee.
Meanwhile in Europe you can get a good espresso for a euro.
In Paris you're not spending one euro on espresso typically. It's going to be closer to 2.50 to 3 euros. Adjust that to dollars, you get more like $3 to $3.70, adjust for income differences you get $5 to $6 (US incomes are far higher than French incomes, and especially if we're comparing eg NYC vs Paris).
https://francetravelplanner.com/go/paris/shop/costs.html
Americans have not been conditioned to accept high prices for drinks. When was the last time you wandered through Walmart's beverages section? Their grocery section has half an aisle for inexpensive coffee and tea products, and then another half aisle for inexpensive soda products. As another example, cases of water at Walmart go for $4 for a brand label pack of 24 to 32 500ml bottles, or $0.13 to $0.17 per unit. If anything, most Americans are conditioned to expect to pay very cheap prices for purchased beverages. That's why Starbucks is considered expensive to the average person.
A small group of high income Americans find it acceptable to spend what is a trivial sum for them, on such product experiences.
The notion that many Americans are spending $15-$20 on daily beverages, is laughable. The median income is $30,000. You want me to believe a lot of people are spending $7,000 annually on beverages? Yeah right.
It's equivalent to saying: in the US you can buy a vast array of great wines for $10 to $20, while in France people are paying $140 for wine.
Sure, some people in France are. It'd be false to pretend a large number of people in France are doing that regularly. Few Americans are actually spending outsized sums of money on beverages.
In Albania, it is the 0.80 for a medium-good espresso (Lavazza or Illy), and 1.20 to 1.50 for a cappuccino.
In Barcelona, a glass of wine varied between 2.5. and 3 euros. I never paid more than that. In the US? 12-15 (In NYC at least).
Also, in NYC, you can't buy a bottle of water for $1, in most places, while in supermarkets in Spain was about 0.50 or 0.60
So, yeah, Americans in general pay twice as much for beverages.
Consumer Prices in San Francisco, CA are 1.16% lower than in New York, Consumer Prices in Boston, MA are 12.87% lower than in New York, NY
There are places where things are even cheaper (especially in Souther Italy), where 3 euros will get you a whole bottle of wine.
While NYC is expensive, is it not much more than either San Francisco or Boston. (maybe a 5% difference, but not 2x).
Just saying
A common assumption that americans get wrong: this isn't the case. (Taxes might affect things a bit, but that doesn't take into account the healthcare and retirement situation.)
The mythical 1-euro coffee persists due to cultural reasons. But also due to very depressed purchasing power in places in Greece, Italy etc
Go to any capital or premium tourist location, and u too will discover the pleasures of 5euro coffee.
Even if this is still true, you're talking about different things than what most Americans purchase. Very few Americans purchase the single shot of espresso, but last I checked Starbucks has it for ~$1.50.
What many Americans consider coffee is really a milkshake flavored with a couple of shots of espresso. Then there is the size issue. If I walked into a cafe in Europe and wanted a grande sized latte it would end up being very similar in price to Starbucks (2 espresso shots and basically a glass of milk).
I haven't been to Starbucks recently, so I can't comment on their products.
They charge extra for milk, as black coffee is typically drunk as a side dish to iconic pasteis.
https://media-cdn.tripadvisor.com/media/photo-s/08/da/d6/7b/...
It was _good_ and the novelty was nice, but I probably wouldn't choose to do it again. Instead I just do my own pourovers at home for ~$0.30 each and add my own flavors at brew time (e.g. ground cinnamon sticks.)
I can't say much though, I grudgingly support my wife's Starbucks habit at $5/drink and just a few years ago I found that just as ridiculous.
Well, in this case what you’re paying for is not the coffee per se.
I feel how the coffee is prepared matters more than where it is from. Or maybe I lack the taste buds to feel it properly. Oh well.
And of course taste is subjective so it's hard to get an absolute answer here. Kona coffee is likely overpriced and overhyped. In my opinion there's a diminishing return on coffee taste past a certain point. I haven't seen any indications that the really expensive coffees' tastes are proportional to the price, it's just that demand is high because they're famous in some way (Kona, Blue Mountain, Kopi Luwak)
For a real eye opener of "bean origin affects flavor", try some Ethiopian Yirgacheffe beans from a reputable roaster. You should get strong blueberry notes from the coffee, quite different from other regions' coffees. It'll be more expensive than a bag of whatever supermarket coffee, but there's a clear distinction in taste. Whether you like that taste is entirely another thing, but drink whatever tastes good to you!
Same thing happened to Godiva.
Compare it to coffee at Noah’s Bagels or Tim Hortons. Those are large chains too. Tastes vary, but I think if you take a plain black coffee from each of the three, Starbucks will still come out on bottom.
But yes, living in the self-appointed 'coffee-snob' capital of the southern hemisphere, I do notice that fancy single origin roasts that dazzle the experts often leave the average man in the street underwhelmed "It's nice, but..."
People need to wake up from their day dream and realise something simple and plain - many travel to the US with instant coffee packed in their luggage because American coffee (made or grown in the US) is just !@#$%^.
https://www.treehugger.com/green-food/number-of-the-day-18-c...
The article never said how good the coffee was? That’s an important point in this context.