Executive Summary
Coffee theft is becoming more widespread throughout the Americas as prices hit all-time highs, which makes it also a larger commerce and security concern. The leading producer in the world, Brazil, is subject to warehouse attacks and also farm raids. Colombia has prevented multi-ton thefts targeted at export supplies, and organised gangs in the United States use identity fraud and carrier impersonation to steal truckloads valued at about $200,000. [source]
These are not just opportunistic crimes. Crime groups are reintroducing stolen beans into the legal market in Costa Rica, as well as other countries, to launder the agricultural products. Coffee is becoming a low-risk means of moving and concealing illicit revenue.
Producers are incurring additional expenditures as a result of theft, including reduced profit margins and increased insurance and security costs. These expenses are passed on to customers; prices in the US are rising about 20% annually.
If theft and increasing prices persist, supply disruptions may put pressure on the profitability of Americas’ region farms, drive out smaller growers, and progressively reduce the world’s coffee supply.
Image Sourced From: Pexels
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