Devouring profit - International Coffee Organization

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52 The previous chapter dealt with the losses due to CBB damage. We now draw on studies to look further at the implications of the pest in different countries. Data on coffee farmers in each country can be found in Appendix A; data on coffee in these countries in Appendix B. 5.1 Economics of CBB in India 5.1.1 Losses due to CBB Figure 6 simulates income reduction in Rupees per hectare due to different levels of CBB damage. As can be seen, reductions will depend on the expected yield. E.g. for a yield of 1,200 kg of green coffee/ha losses will be approximately Rs 7,000 for 20% damage, equivalent to US$155, which is a serious loss. Income/ha (Rupees) 35000 33000 31000 29000 27000 1,200 kg/ha 2 4 6 8 10 12 14 16 18 20 % of CBB 900 kg/ha Figure 6. Income reduction per hectare due to CBB damage rates. 5.1.2 Cost of controlling CBB Although it is always difficult to establish a standard cost of CBB management, in the survey with extensionists at Kalpetta we tried to estimate it. They reckoned the average cost per hectare at about Rs 2,800 but with a skewed distribution (Figure 7). So if we assume that the CBB management cost is about Rs 2,500 with potential losses of around Rs 7,000 if damage rises to 20%, it is quite <strong>profit</strong>able to carry out the pest control. In a subsequent study carried out by the <strong>Coffee</strong> Board (Setti et al., 2001) and analysed by Duque (2002), the real costs of CBB management tend to be lower than those calculated by the extensionists (Figure 8). It is likely that the declining coffee prices between the two studies had caused farmers to reduce costs further and that this to some extent explains the discrepancy.
Figure 7. Cost per hectare of CBB management; extensionists point of view in Kalpetta. Figure 8. Cost of CBB management, farmers’ cost estimates. It is evident that to find coffee growers investing more than 1,500 Rs/acre when controlling CBB is now rare. The majority of the farmers tend to spend up to 600 Rs/ acre, with 78.3% of the sample is placed in that range. The average cost for CBB management was 426 Rs/acre/year, which equals US$22.6/ha/year. 53
Page 1 and 2: Devouring Profit the socio-economic
Page 3 and 4: Markets can be efficient, but nobod
Page 5 and 6: 4 6 9 11 19 31 42 51 64 72 78 84 96
Page 7: Gleaning, the term for cultural con
Page 10: 10 Some of the recommendations of t
Page 13 and 14: Colombia: “Authorities from the p
Page 15 and 16: are not used to making measurements
Page 17 and 18: Advantages of Bb: environmentally s
Page 19 and 20: I believe that a man who has spent
Page 21 and 22: 2.1 India In India two main regions
Page 23 and 24: 2.2 Ecuador An RRA was carried out
Page 25 and 26: case reduction for quality is small
Page 27 and 28: nity are not paying enough attentio
Page 29 and 30: Table 12. Main problems in coffee p
Page 31 and 32: “Agricultural production has evol
Page 33 and 34: Picking of the infested berries and
Page 35 and 36: Table 15. Harvesting periods of som
Page 37 and 38: which is in fact the cheapest compo
Page 39 and 40: enefit seen as a consequence of the
Page 41 and 42: But we have to consider also that t
Page 43 and 44: CBB is a complex pest because it ca
Page 45 and 46: 4.2 Estimation of a loss function f
Page 47 and 48: During the field visits many farmer
Page 49: 4.4 Cost structure for CBB manageme
Page 54 and 55: 54 On average the share of CBB mana
Page 56 and 57: 56 5.3 Economics of CBB in Guatemal
Page 58 and 59: 58 5.4 Economics of CBB in Mexico U
Page 60 and 61: 60 For the same percentage of CBB t
Page 62 and 63: 62 Because of these factors it can
Page 64 and 65: 64 Pest control needs to be viewed
Page 66 and 67: 66 Because of inadequate training,
Page 68 and 69: 68 6.5 Rural wages Since CBB contro
Page 70 and 71: 70 many other coffee countries. The
Page 72 and 73: 72 Quality of the product, quality
Page 74 and 75: 74 face of world coffee and to form
Page 76 and 77: 76 A more complete socio-economic
Page 79 and 80: ANECAFÉ. 1999. Proyecto manejo int
Page 81 and 82: GARCÍA, A. 1998. Diagnóstico Inic
Page 83: UPTON, M. 1996. The Economics of Tr
Page 86 and 87: 86 Table 31. Area and share of the
Page 88 and 89: 88 Ecuadorian coffee growers Main c
Page 90 and 91: 90 Colombia or Honduras for instanc
Page 92 and 93: 92 As can be observed, 60% of farme
Page 94 and 95: 94 Analysing Figure 20, we see that
Page 97 and 98: This appendix reviews the economic
Page 99 and 100: export about 20,000 tonnes (somethi
Page 101 and 102: national economy of Honduras. Betwe
Page 103 and 104:
1985 and 1992 the national coffee p
Page 105 and 106:
estimated at 6%. Colombia’s princ
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