CoffeenomicsThetruecostofourcaffeineaddictionThenexttimeyouhandover£3foryourdeluxecappuccino,askyourselfhowmuchtheroastedbeansthatcupreallycost.Foryouraveragecupofcoffee,theproducerreceivesroughly10p-that`sabout3.5%.ThisdisparityiscausingincreasingconcernamongsomecharitieswhobelievethattheexcessiveprofitsofcoffeeshopchainscomeattheexpenseofvulnerablecoffeeproducersincountrieslikeEthiopia,KenyaorLatinAmerica.Here,coffeeproductionisthestaplecropformanymillionsofgrowers.Forexample,inEthiopiaalone,15millionpeopledependonthecoffeetrade,whichconstitutesaround50%ofthecountry`sgrossdomesticproductand90%ofitsexports.Theaveragewagepaidtolaborerswhopickthebeansandworkonfarmsinabout50paday.Sowheredotheaddedcostscomefrom?Accordingtoexperts,bythetimeitisconsumedbyusinourhomesorinacoffeeshop,thebeanmayactuallychangehandsupto150times,eachtimefacingamark-upasitistransported,toasted,packagedandsold.Thisprocessaloneaddsatleast50%toitsprice.Thenanother10%inexportcostswithfreightandinsurancebeforeanimportertakesover.Finally,itissoldtousinacoffeeshop-andrunningacoffeeshopinashopprecinct,seating75insideand50outside.Therentis£65000peryearplusservicechargeof£20000ayear.Localcounciltaxesaddanother£250000tothat.Inotherhands,evenbeforeaddingstaffingcostsandoverheads,settingasideanamountforredecorationandmaintenanceontheproperty,thisparticularcoffeeshopneedstosellaminimumof50000coffeesayear,or200coffeesaday.Factorintheseadditionalcostsandweareprobablytalkingaboutabreak-eventotalof400coffeesaday.However,irrespectiveofhowmuchweenduppayingorthereasonswhy,therealityisthatgrowersthemselvesseeonlyatinyproportionofthatamount.Organizationslikefair-tradedotrytomakeadifference.Itguaranteestopaygrowersafixedproportionfortheircoffee,whichisabovestandardmarketrates.Forexample,afarmersellingapoundofFairtradeArabicacoffeeispaid$1.26comparedtotheworldmarketpriceof$1.10apound.TheFairtradeprice5¢whichisinvestedbackintocommunityprojects.ManyshopsandcoffeebarsdonowofferFairtradecoffeetocustomersalongsidetheirstandardoffering,butnotallofthatinflatedpricegoestothegrower.TheonlybitcontrolledintheFairtradesystemisthepriceafarmerispaidforproduce.Afterthat,markupsaredeterminedbytheretailersandmiddlemen.Thatsaid,atleastFairtradeisonesmallstepthatdoeshelpfarmersaroundtheworldgetabetterpricefortheirproducts.