Blended coffee disadvantages Kona growers, disputed study finds

UNITED STATES 21st February 2010

Blended coffee being marketed as Kona disadvantages Kona growers at least as much as any benefit gained from blending, a study published in mid-February said.

The grower-funded study, "Economic Effects of Blending Kona Coffee -- A Preliminary Analysis" by Dr Marvin Feldman, found that blenders and marketers of Kona blends (which by state law can contain as little as 10% pure Kona) gained as much as $14.4m annually as a result of the practice.

However, the study said, if blending Kona coffee were to be prohibited, farmers would gain at least as much benefit, because of the increase in consumers' perception of Kona as quality coffee, rather than being indistinguishable from "commodity" coffee.

The report also found that the marketing of 10% Kona blends resulted in a partial transfer of profit from Kona growers to blenders and from in-state to out-of-state interests.

In a report by Hawaii Public Radio, Bruce Corker, President of the Kona Coffee Farmers Association, said that while his organisation did not object to blending, it was against the use of the Kona name on bags that were not Kona. The market was flooded with the cheap Kona blends, he said, driving the price for Kona down.

Jim Weyman of blender Hawaii Coffee Co in the same radio report responded that increasing the expensive Kona coffee percentage requirements for blends would only drive up the cost to consumers and reduce the amount of coffee sold at retail.

Hawaii-based coffee expert Dr Shawn Steiman, writing in the roaste coffee blog, disputed the conclusions of Dr Feldman's study, pointing out that they were based on the false assumption that only 10% of all Kona farmers supply the blenders with coffee for their blends. The truth, he said, was that at least half of the over-700 Kona growers solely supply the blenders, while the remaining private label and single estate farms market and sell 100% Kona coffee.

As a result, he said, a large number of Kona growers do benefit from the revenues associated with blending. Were blending to be banned, he added, the more expensive 100% Kona coffee would flood the market, and there was a question over whether the market could bear this supply increase.