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Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
Coffee, Fair Trade and Justice for Farmers in the Global South
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Coffee, Fair Trade and Justice for Farmers in the Global South

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  • Fairtrade Foundation, Spilling the Beans on the Coffee Trade, London: Fairtrade Foundation, 2002, p. 4. Photo of coffee tree by Cindi Young.
  • Dicum, Gregory and Nina Luttinger, The Coffee Book, New York: New Press, 1999, p. ix. International Coffee Organization -- http://www.ico.org/show_faq.asp?show=35 (>1.5 bil cups /day) Photo: www.coffee-etcetera.com
  • Dicum and Luttinger, p. 38. Map from National Geographic at http://images.google.com/imgres?imgurl=http://www.nationalgeographic.com/coffee/images/sp1.gif&imgrefurl=http://www.nationalgeographic.com/coffee/&h=331&w=286&sz=25&hl=en&start=3&tbnid=DFB640AGSgl_vM:&tbnh=114&tbnw=98&prev=/images%3Fq%3Dcoffee%26ndsp%3D20%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN
  • Murray, Douglas L., Laura T. Raynolds, and Peter Leigh Taylor, One Cup at A Time: Poverty Alleviation and Fair Trade Coffee in Latin America . Fort Collins, CO: Colorado State University Fair Trade Research Group, 2003, p. 3. (25 acres) http://www.colostate.edu/Depts/Sociology/FairTradeResearchGroup/doc/fairtrade.pdf . Oxfam International, Mugged: Poverty in your Coffee Cup , Oxford, GB, 2002: Oxfam, p. 7. (2.5 and 12.5 acres) Dicum and Luttinger, p. 51. (Mexico) Photo by Cindi Young.
  • Murray, Raynolds, and Taylor, 2003, p. 3. (125 million people); Oxfam, 2002, page 7, and United Nations Development Program, Human Development Report 2005, New York: UNDP, 2005, p.139 (20-25 million households).
  • FairTrade Foundation, 2002, p. 4. Ponte, Stefano, “The ‘Latte Revolution’? Winners and Losers in the Restructuring of the Global Coffee Marketing Chain,” Centre for Development Research, Copenhagen, Denmark, 2001, p. 10. http://www.globalvaluechains.org/publications/ponte-coffee2.pdf. (Chart)
  • Oxfam, 2002, p. 21. Photo of grocery store coffee display by Ted Goodfleisch
  • Photos of women and man by Cindi Young
  • Oxfam, 2002, p. 9. (25% of 1960 price) Price trend: International Coffee Organization http://www.ico.org/asp/display10.asp
  • Photo: The Fairtrade Foundation
  • Fairtrade Foundation, 2002, p. 4.
  • Oxfam, 2002, p. 9.
  • Photo of girl by Cindi Young; photo of coffee farmers by Maria Ramser
  • Fairtrade Foundation, 2002, p. 16. (quote)
  • Photo by Maria Ramser
  • Food and Agriculture Organization, The State of Agricultural Commodity Markets 2004, FAO, Rome, 2004, page 21. ftp://ftp.fao.org/docrep/fao/007/y5419e/y5419e00.pdf FAO Photo by Edith Rasell
  • Food and Agriculture Organization, The State of Agricultural Commodity Markets 2004, FAO, Rome, 2004, page 21. ftp://ftp.fao.org/docrep/fao/007/y5419e/y5419e00.pdf FAO Photo by Stan Duncan
  • Food and Agriculture Organization, The State of Agricultural Commodity Markets 2004, FAO, Rome, 2004, page 21. ftp://ftp.fao.org/docrep/fao/007/y5419e/y5419e00.pdf FAO Photo by Edith Rasell
  • Photos by Edith Rasell
  • Fairtrade Foundation, 2002, p. 15. Photo by Cindi Young
  • Photo by Cindi Young
  • Photo: CLUSA: ASOCIACION LIGA DE COOPERATIVAS, NICARAGUA http://www.esperanzaenaccion.org/content.php?CID=71
  • Photo by Stan Duncan
  • Photos by Edith Rasell
  • Photo by Cindi Young
  • Photo by Edith Rasell
  • Photo by Cindi Young
  • Photo by Cindi Young
  • Photo by Edie Rasell
  • Fairtrade Foundation, 2002, p. 22.
  • Photo Cindi Young
  • Source: www.Coocafe.com
  • Source: www.Coocafe.com
  • Oxfam, 2002, p. 40. TransFair USA, 2005 Fair Trade Coffee Facts and Figures. TransFair USA, Oakland, CA, 2006, p. 6.
  • TransFair USA, 2006, pp. 1, 4, 6. Photo Cindi Young
  • TransFair USA, 2006.
  • Fair Trade Labeling Organizations International, Annual Report 2006 . http://www.fairtrade.net/sites/news/FLO-Annual%20Report-final-06.pdf 24,222 metric ton = 26,700 tons; 33,992 MT = 37,469 tons
  • Murray, Raynolds, and Taylor, 2003, p. 15. Photo Cindi Young
  • 11,000: Equal Exchange 2004 Annual Report , p 6.
  • Transcript

    • 1. A Cup of Justice
      • Coffee,
      • Fair Trade, &
      • Justice for Farmers
      • in the
      • Global South
    • 2. The third most valuable item traded internationally. Coffee
    • 3. Americans Like Their Coffee
      • Worldwide, people drink over 1½ billion cups of coffee a day.
      • The U.S., with just one-twentieth of the world’s population, consumes one-fifth of all the coffee.
    • 4. Coffee is grown in some 80 countries Coffee-growing countries are located fairly near the equator and generally are quite poor. The largest producers are shown in yellow on the map.
    • 5. Coffee is Grown on Small Farms
      • About 70% of the world’s coffee is grown on farms of less than 25 acres.
      • Most are between 2½ and 12½ acres.
      • In Mexico, 90% of coffee is grown on small plots.
    • 6.
      • Worldwide, 20 to 25 million small farm households,
      Many Small Farm Families Depend on Coffee Ethiopia Costa Rica Nicaragua some 125 million people, depend on coffee for their livelihoods.
    • 7. From tree to supermarket, coffee changes hands up to 150 times with costs and profits added at each step. Farmers Get Only a Small Share of the Price Consumers Pay
    • 8. They receive roughly 5% of the retail price of a package of coffee sold in a U.S. supermarket. Small coffee farmers receive 1% or less of the price of a cup of coffee sold in a coffee bar. 1% 5%
    • 9. Small coffee farmers, their families and communities are suffering
    • 10. What Is Happening in the Global Coffee Industry ? Ethiopian coffee farmer
    • 11. Prices Paid Coffee Farmers are Very Low
      • The price farmers receive for their coffee is at a record low, just 25% of the price
      • in 1960.
    • 12.
      • An excess supply of coffee has driven down the world price.
      • A power imbalance has driven down the prices paid small farmers even more.
      Prices Paid Coffee Farmers are Very Low
    • 13. An excess supply of coffee has driven down the price There are new coffee-producing countries. Viet Nam is now the world’s second largest producer. Traditional producers are also growing more coffee to boost incomes. Young coffee plants
    • 14. Farmers try to offset the falling price by producing and selling even more. But this leads to even lower prices and earnings continue to fall. An excess supply of coffee has driven down the price
    • 15.
      • The fall in price has especially hurt people whose small farms cannot be mechanized and who lack money
      • for investments that
      • could increase
      • their output.
      An excess supply of coffee has driven down the price Coffee plantation in Kenya Small hillside farm of shade-grown coffee
    • 16.
      • While the world price has fallen, the price charged consumers in grocery stores and coffee shops is little changed.
      • The “middle-men,” especially the coffee roasting firms, reap much of the benefit.
      An excess supply of coffee has driven down the price
    • 17.
      • A power imbalance
      • has driven down the
      • prices paid
      • to small
      • farmers
      • even more.
      Kraft owns Maxwell House Prices Paid Coffee Farmers are Very Low
    • 18. A power imbalance has driven down prices paid small farmers
      • Lacking modern transportation and with
      limited options for selling their crops, small farmers often sell to local buyers (“coyotes”) who pay especially low prices.
    • 19. A power imbalance has driven down prices paid small farmers
      • Small farmers typically sell their crop immediately after harvest when the price is lowest because they lack
      • storage
      • facilities
      • and need
      • the money.
    • 20. A power imbalance has driven down prices paid small farmers
      • They may have borrowed money during the growing season to buy food, meet emergencies, or pay for other coffee-growing items. Generally, loans are available only at
      • very high rates of interest so prompt repayment is critical.
      Returning home from the coffee trees on the mountainside
    • 21. A power imbalance has driven down prices paid small farmers “ In selling my coffee I cannot consider the market price. I decide when to sell according to my pressing needs. Hence I will sell regardless of the price, whether it is high or low. I do not have bargaining power.” -- Indonesian farmer
    • 22.
      • With little access to credit at reasonable rates, small farmers often cannot afford investments
      A power imbalance has driven down prices paid small farmers to improve their farming practices or diversify into other, more profitable crops.
    • 23.
      • Consequently, small farmers
      • have difficulty competing
      • with mechanized coffee
      • plantations and
      • multinational
      • firms.
      A power imbalance has driven down prices paid small farmers
    • 24.
      • Low coffee prices and small
      • farmers’ vulnerability
      • and disadvantage
      • mean they earn
      • too little for their
      • coffee .
      Small Farmers Earn too Little
    • 25. Developing Countries Earn too Little
      • A different power imbalance leaves small coffee-producing countries with too little money for their coffee.
    • 26.
      • Just three roasters (Nestle, Kraft – Maxwell House, and Sara Lee) process 45% of the world’s coffee.
      • Just four companies
      • purchase 40% of
      • the world’s coffee.
      Developing Countries Earn too Little Exporters in coffee-producing (usually poor) countries sell their coffee to international buyers and roasters. These large multinational firms seek to pay as little as possible.
    • 27. Developing Countries Earn too Little
      • If prices for the 10 most valuable agricultural commodities exported by developing countries (coffee is one of these) had risen since 1980 only enough to keep pace with inflation,
      • then exporting countries
      • would have received
      • $112 billion more in 2002
      • than they actually did.
    • 28. Developing Countries Earn too Little
      • This amount, $112 billion, is more than twice the international aid received
      by all developing countries, worldwide, that year. Market, San Cristobal de las Casas, Chiapas, Mex.
    • 29. Developing Countries Earn too Little
      • Since they
      • are paid so
      • little for their
      • products,
      • these poor
      • nations are
      • unable to
      • pay off their
      • debts, provide essential services to their populations, and import needed items.
      Colombia
    • 30. The Impact of Low Coffee Earnings On Coffee Farmers and their Communities Nogales, Mexico Sincelejo, Colombia
    • 31.
      • In Mexico, “as a result of the decline in farmers’ income, about 20% of children were taken out of school and [farmers] were unable to afford clothes, shoes, basic medical attention, and repayment of credit.”
      • -- Mexico: Coordinadora Nacional de Organizaciones Cafetaleras
      Impact of Low Coffee Earnings Worsening poverty Chiapas, Mex.
    • 32.
      • Loss of Farms
      • Farmers can lose their land, forcing families to move to cities where living conditions may be inhumane and jobs are scarce.
      Impact of Low Coffee Earnings Indonesia Brazil
    • 33.
      • Neglect of Coffee Trees
      • Cuts Future Income
        • Farmers may leave their communities to look for other work. Coffee trees are neglected, reducing the quality and quantity of future years’ beans, and future income.
      Impact of Low Coffee Earnings Neglected, diseased coffee tree
    • 34.
      • Migration
      • Farmers may leave their country, seeking work elsewhere. Tens of thousands of Mexican coffee farmers have left their land,
      Impact of Low Coffee Earnings leaving behind grieving families and weakened communities. Some come to the U.S. without documents. U.S.-Mexico border
    • 35. What Can Be Done ?
      • Fair Trade, not “free” trade,
      • will improve the lives of
      • coffee farmers
      • Fair-trade importers provide
      • a vital link between small farmers and consumers who seek justice for small coffee farmers.
    • 36.
        • * Buy coffee grown
        • by small farmers organized into cooperatives (coops).
      A Fair Trade Coffee Importer Agrees to:
    • 37.
      • A cooperative (coop) is a business that is owned and democratically controlled by
      • its members.
      What is a Coop? Members, CIRSA Coop, Chiapas, Mex.
    • 38.
      • A coop operates for the benefit of its members. It does not earn profits for share-holders. It elects its own leadership and does
      What is a Coop? Coffee coop members, Nicaragua not answer to an outside board.
    • 39.
      • * Pay a fair price currently set at $1.21 a pound or pay the world price, whichever is higher; and
      • Pay a 5 cent per pound
      • “ social premium;” and
      • If organic, pay an
      • additional 15 cents a pound.
      A Fair Trade Coffee Importer Agrees to:
    • 40. The Social Premium
      • The social premium of 5 cents per pound is paid to the coop, not to farmers.
      • Coop members decide how this money is to be used: for example, to
      Truck purchased by Mexican coop purchase needed equipment such as a truck to transport coffee, or to build a school or clinic.
    • 41.
        • * Purchase coffee directly from farmer coops, eliminating many “middle men” and opportunities for exploitation, providing higher prices for farmers.
      A Fair Trade Coffee Importer Agrees to: Warehouse, CIRSA Coop, Chiapas, Mex.
    • 42. Farmers get a Larger Share of the Price Paid by Consumers A simplified market (follow the green lines) means fewer middle men and more money for farmers.
    • 43.
        • * Develop long-term relations with a coop. This encourages investment since farmers know they will have a strong, ongoing market for their coffee.
        • * Offer credit of up to 60% of the coffee’s sales price in advance of the harvest.
      A Fair Trade Coffee Importer Agrees to:
    • 44. Benefits of Fair Trade to Farmers and their Families
      • Better education, health, and opportunities due to the social premium payment.
      • Higher incomes.
      • Greater access to
      • credit for investment
      • and other needs.
    • 45. Benefits of Fair Trade to Farmers and their Families
      • Stable incomes that enable farmers to risk experimenting with
      • other techniques
      • and crops that might
      • have a higher payoff.
      • Increased self esteem.
      • Higher quality coffee (that earns a higher price) due to training provided by the coop.
    • 46. Benefits of Fair Trade to Farm Communities
      • Enhanced community
      • opportunities such as
      • economic develop-
      • ment projects, schools,
      • health clinics,
      • sanitation facilities,
      • clean water, and
      • fuel-efficient stoves.
      • Strengthened communities with less poverty, more stability, and healthier and more educated community members.
    • 47. Benefits of Fair Trade to Farm Communities
      • Stronger political and economic organizations
      • representing farmers’ interests locally and nationally.
      • Better
      • environmental
      • practices
      • including
      • organic
      • farming.
      • Strengthened
      • indigenous
      • communities.
    • 48.
      • “ When you buy our coffee you are not just buying our coffee but supporting our democracy”
      • -- Guillermo Vargas Leiton, coffee farmer, Costa Rica
      Benefits of Fair Trade to Farm Communities
    • 49.
      • Increased export earnings to pay off debts to banks and international organizations and to purchase needed imports.
      • A better fed, healthier,
      • and more educated
      • population.
      • A more stable
      • population without
      • excessive migration
      • within or out
      • of the country.
      Benefits of Fair Trade to Developing Countries
    • 50.
      • Coocafe is a coop in Costa Rica that began selling fair trade coffee in 1989. It has grown to over 3,500 farmer members and their families.
      The Story of one Coop: Coocafe in Costa Rica
    • 51.
      • Coocafe has used its social premium to:
      • Purchase a processing plant to de-pulp coffee beans that uses 80% less water.
      • Purchase a solar energy system
      • to dry beans, eliminating the
      • need to cut down over six acres
      • of forests annually.
      • Promote diversification into additional crops like
      • macadamia nuts, yucca, bananas, and cassava,
      • and help market these crops.
      The Story of one Coop: Coocafe in Costa Rica
    • 52.
      • Coocafe, has also provided:
      • almost 1,000 scholarships
      • for farmers’ children to
      • attend secondary school
      • and university.
      • helped maintain local primary schools.
      • purchased land for 25 landless families.
      • Learn more at www.Coocafe.com
      The Story of one Coop: Coocafe in Costa Rica
    • 53. Fairly Traded Coffee
      • The first Fairly Traded coffee was imported into the Netherlands in 1973 from Guatemalan small-farmer cooperatives.
      • Thirty years later, 200 coffee cooperatives representing nearly 700,000 farmers, and more than 70 traders and 350 coffee roasters are part of the Fair Trade network.
    • 54. Fairly Traded Coffee
      • Over 30% of all Fairly Traded coffee sold in the world is purchased in the U.S.
      • It comes from 84 co-ops and hundreds of thousands of
      • farmers in 18 countries.
    • 55. Fairly Traded Coffee
      • By 2004, sales of Fairly Traded coffee in the U.S. had risen to over 16,000 tons.
      • But this was less than 2% of all coffee sold here.
    • 56. Fairly Traded Coffee
      • Worldwide, sales of Fairly Traded coffee grew 40% between 2004 and 2005.
      Global sales of Fairly Traded coffee, 2004 and 2005 (tons) 37,469 26,700 2004 2005
    • 57.
      • Certified fair-trade coops produce seven times more coffee than fair trade buyers purchase. They cannot sell all their coffee to fair trade purchasers.
      • So we need to expand sales of fairly traded coffee.
      Fairly Traded Coffee
    • 58.
      • The nonprofit
      • organization
      • TransFair USA
      • certifies coffee,
      • tea, chocolate,
      • rice, sugar
      • and a few
      • fresh fruits.
      Fairly Traded Certified Coffee WATCH FOR & BUY PRODUCTS WITH THIS LABEL
    • 59.
      • There are a number of Fairly
      • Traded coffee traders and
      • roasters.
      • Coffee, tea, and cocoa may
      • be purchased through the
      • UCC-Equal Exchange Coffee Project
      • (www.ucc.org/justice/issues/coffee-project/)
      Where to Buy Fairly Traded Coffee
    • 60. Where to Buy Fairly Traded Coffee Equal Exchange is the oldest and largest fair trade organization in the U.S. and is itself a worker-owned coop. It’s Interfaith Program for faith-based organizations serves over 11,000 participating congregations and other groups.
    • 61.
      • Global Exchange has links to a number of sources of Fairly Traded coffee. (www.globalexchange.org)
      • To find a grocery store near your home that sells Fairly Traded products including coffee, go to TransFair’s online locator at www.transfair.org.
      Where to Buy Fairly Traded Coffee
    • 62.
      • Starbucks, Dunkin' Donuts, Procter & Gamble, and other large corporations have also agreed to sell Fairly Traded coffee. However,
      • consumers report
      • it is often unavailable
      • when they request it.
      • The Bottom Line:
      • Watch for the Fair
      • Trade Certified logo
      Where to Buy Fairly Traded Coffee
    • 63. Produced by Edith Rasell Minister for Workplace Justice Justice and Witness Ministries United Church of Christ 700 Prospect Ave Cleveland, OH 44115-1100 216-736-3709 [email_address] 2006 , God is Still Speaking

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