How Many Pounds of Coffee

Do You Need to Trade

for a Russian Fighter Jet?

By

www.BuyOrganicCoffee.org

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

Indonesia is the fourth largest

coffee producer in the world at

more than 800,000 tons a year.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

A fourth of their exports are high

quality Arabica coffee beans and

three fourths are lower quality but

higher in caffeine content Robusta.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

As you enjoy your cup of Java

remember that Java is an island in the

Indonesian archipelago and was such

a dominant producer in the early days

that the island’s name came to mean

coffee to many people.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

Indonesia is also a country with an

army, navy and air force and

recently they wanted to buy fighter

jets from Russia.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

However, the EU and USA

imposed banking sanctions on

Russia because of its annexation

of Crimea and meddling in Eastern

Ukraine.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

So, how could Indonesia get the

fighter jets it wanted?

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

They resorted to barter and

thereby bypassed the international

banking system.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

Now the only question is how

many pounds of coffee do you

need to trade for a Russian fighter

jet?

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

The business site Bloomberg

reports that Indonesia barters

coffee and palm oil for Russian fighter jets.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

Indonesia said Monday that it will barter coffee, palm oil and other commodities for 11 Russian-made Sukhoi fighter jets, calling U.S. and European sanctions against Russia an opportunity to boost the Southeast Asian nation's trade.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

Indonesian Ministry of Trade spokesman Marolop Nainggolan said that a memorandum of understanding for the barter was signed Aug. 4 in Moscow between Russia's Rostecand PT. Perusahaan PerdaganganIndonesia, both state-owned companies.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

The Price of Coffee

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

As of this writing, Arabica coffee

trades at about $3.30 a pound.

Robusta trades at about $2.31 a

pound.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

How does that translate into

Russian fighter jets?

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

If the Russians only want lots of

caffeine and less flavor they will barter

for Robusta. $40 million divided by

$2.31 a pound for Robusta comes to

17.3 million pounds of Robusta coffee

which is almost 9,000 tons.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

If the Russians go for the better

tasting Arabica, this comes to $40

million divided by $3.30 or 12.1

million pounds of Arabica which is

6,000 tons.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

Indonesia produces 200,000 tons

of Arabica a year and 600,000 tons

of Robusta.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

If the country decided to trade all

of its Robusta coffee for fighter jets

they could trade for 600,000

tons/9,000 tons = 66 Russian

fighter jets.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

If they traded all of their Arabica

coffee for jets that would work out

to 200,000 tons/6,000 tons = 33

Russian fighter jets.

http://buyorganiccoffee.org/2018/how-many-

pounds-of-coffee-do-you-need-to-trade-for-a-

russian-fighter-jet/

Of course there is palm oil in the

bargain but our calculations only

concern themselves with how

many pounds of coffee they need

to trade for Russian fighter jets of which they are buying 11.