Coffee, Fair Trade, & Justice for Farmers in the Global South A Cup of Justice Coffee, Fair Trade, & Justice for Farmers in the Global South

Many Small Farm Families Depend on Coffee Worldwide, 20 to 25 million small farm households, some 125 million people, depend on coffee for their livelihoods. Nicaragua 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). Costa Rica Ethiopia

Small coffee farmers receive 1% or less of the price of a cup of coffee sold in a coffee shop. 5% They receive roughly 5% of the retail price of a package of coffee sold in a U.S. supermarket. Oxfam, 2002, p. 21. Photo of grocery store coffee display by Ted Goodfleisch

Small coffee farmers, their families and communities are suffering Photos of women and man by Cindi Young

What Is Happening in the Global Coffee Industry ? Ethiopian coffee farmer

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. Oxfam, 2002, p. 9. (25% of 1960 price) Price trend: International Coffee Organization http://www.ico.org/asp/display10.asp

An excess supply of coffee has driven down the price 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.

Small Farmers Earn too Little Low coffee prices and small farmers’ vulnerability and disadvantage mean they earn too little for their 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. 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.

The Impact of Low Coffee Earnings On Coffee Farmers and their Communities Chiapas, Mex. Photos by Maria Ramser (girls), Cindi Young (boy with machete), Stan Duncan (market) San Cristobal de las Casas, Mex.

Impact of Low Coffee Earnings Worsening poverty 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 Fairtrade Foundation, 2002, p. 15. Photo by Cindi Young Chiapas, Mex.

Impact of Low Coffee Earnings Loss of Farms Farmers can lose their land, forcing families to move to cities where living conditions may be inhumane and jobs are scarce. Indonesia Brazil

Impact of Low Coffee Earnings Migration Farmers may leave their country, seeking work elsewhere. Tens of thousands of Mexican coffee farmers have left their land, leaving behind grieving families and weakened communities. Some come to the U.S. without documents. U.S.-Mexico border

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.

A Fair Trade Coffee Importer Agrees to: Buy coffee grown by small farmers organized into cooperatives (coops).

What is a Coop? A cooperative (coop) is a business that is owned and democratically controlled by its members. Photo by Cindi Young Members, CIRSA Coop, Chiapas, Mex.

What is a Coop? A coop operates for the benefit of its members. It does not earn profits for share-holders. It elects its own leadership and does not answer to an outside board. Photo: CLUSA: ASOCIACION LIGA DE COOPERATIVAS, NICARAGUA http://www.esperanzaenaccion.org/content.php?CID=71 Coffee coop members, Nicaragua

A Fair Trade Coffee Importer Agrees to: 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.

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 purchase needed equipment such as a truck to transport coffee, or to build a school or clinic. Photo by Stan Duncan Truck purchased by Mexican coop

A Fair Trade Coffee Importer Agrees to: Purchase coffee directly from farmer coops, eliminating many “middle men” and opportunities for exploitation, providing higher prices for farmers. Photos by Edith Rasell Warehouse, CIRSA Coop, Chiapas, Mex.

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. Photo by Edith Rasell

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. Photo by Cindi Young

Fairly Traded Coffee 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. Murray, Raynolds, and Taylor, 2003, p. 15. Photo Cindi Young

Fairly Traded Certified Coffee The nonprofit organization TransFair USA certifies coffee, tea, chocolate, rice, sugar and a few fresh fruits. WATCH FOR & BUY PRODUCTS WITH THIS LABEL

Where to Buy Fairly Traded Coffee 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 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

, God is Still Speaking 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 raselle@ucc.org 2006 , God is Still Speaking