Coffee Roaster Reports Audit Results of Green Coffee Prices

Coffee Roaster Reports Audit Results of Green Coffee Prices

What kind of company looks forward to an audit?

Allegro Coffee Company retained Ernst & Young LLP in 2001 to audit its green coffee prices to ensure that it pays the same or better than the internationally recognized fair trade price for specialty coffee. The first of the 2002 audits, which spans the first two quarters, shows that Allegro continues to pay top dollar -- well above the cost of production -- to its coffee-farming partners. The second audit, from July 1 through December 31, 2002, will be available in February 2003.

Ernst & Young reported that between January 1 and June 30, 2002, Allegro purchased 1.6 million pounds of sustainably grown and certified organic green coffee combined, and the weighted average price it paid was $1.64 per pound including transportation, import fees and taxes. Allegro purchased approximately 499,000 pounds of certified organic coffee and paid a weighted average price of $1.63 per pound. The average fair trade price, reported by TransFair USA, headquartered in Oakland, Calif., is $1.26 per pound for specialty coffee and $1.41 for certified organic coffee. The "C" price, or commodity price per pound for coffee is currently about $0.62, according to the New York Board of Trade.

"This situation is nearly impossible for coffee growers, and as part of a global community, we must do what we can to support them," said Christy Thorns, Allegro's roastmaster and coffee buyer. "Many growers are leaving their crops in search of jobs with better wages so they can feed their families and take care of their communities. We are paying profitable prices for our coffees to help our farming partners not only survive, but thrive."

The world's coffee growers remain in serious financial trouble, as the average commodity price for green coffee remains below the cost of production.
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