U.S. Senator Charles Schumer visits Syracuse to urge Obama to do something about coffee prices

Syracuse, NY - Standing inside a Syracuse coffee shop, U.S. Sen. Charles E. Schumer this morning urged the Obama administration to take action against countries that are increasing coffee prices by stockpiling beans. Because of stockpiling by Brazil and Vietnam—which account for about 45 percent of the average world production and export of coffee—the New York Stock Exchange has...

U.S. Sen. Charles Schumer

Syracuse, NY - Standing inside a Syracuse coffee shop, U.S. Sen. Charles E. Schumer this morning urged the Obama administration to take action against countries that are increasing coffee prices by stockpiling beans.

Because of stockpiling by Brazil and Vietnam—which account for about 45 percent of the average world production and export of coffee—the New York Stock Exchange has shown a 43 percent increase in coffee prices in the last two months, Schumer said.

“Vietnam and Brazil are on their way to becoming JOPEC, the OPEC of coffee, stockpiling a commodity that everyone uses and needs,” Schumer said. “New Yorkers already have one cartel reaching into their pockets every time they fill their car up at the pump, they don’t need another one grabbing their hard earned dollars when they’re getting coffee.”

Schumer has sent a letter to U.S. Trade Representative Ron Kirk, asking him to question Brazil and Vietnam about their stockpiling activities during a meeting of the International Coffee Organization on Sept. 20 in London.

“I respectfully ask you to ... urge exporting members to eliminate or avoid adopting such plans,” said the letter. “As the world’s largest coffee importer . . . the United States has a significant interest in ensuring that ICO members avoid taking actions that may hinder fair trade in coffee.”

Anna Dobbs, the owner of Freedom of Espresso, joined Schumer at his news conference at her store at 115 Solar St. She had to spend $600 more last month for her coffee supply. As a result, Dobbs will raise the coffee-by-the-pound price by 50 cents. The price for a cup of coffee at the four Freedom locations will remain the same for now, she said.

“I’m not happy but we haven’t raised our prices at all in three years,” Dobbs said. “We have to do, what we have to do to stay in business.”