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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. Costa Rica. Ethiopia.

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A cup of justice
A Cup of Justice

Coffee,

Fair Trade, &

Justice for Farmers

in the

Global South


Many small farm families depend on coffee
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

Costa Rica

Ethiopia


They receive roughly 5 of the retail price of a package of coffee sold in a u s supermarket
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 shop.

1%

5%


Small coffee farmers their families and communities are suffering
Small coffee farmers, coffee sold in a U.S. supermarket.their families and communities are suffering


What is happening in the global coffee industry
What Is coffee sold in a U.S. supermarket.Happening in the Global Coffee Industry ?

Ethiopian coffee farmer


Prices paid coffee farmers are very low
Prices Paid Coffee Farmers are Very Low coffee sold in a U.S. supermarket.

The price farmers receive for their coffee is at a record low, just 25% of the price

in 1960.


An excess supply of coffee has driven down the price coffee sold in a U.S. supermarket.

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
Small Farmers Earn too Little coffee sold in a U.S. supermarket.

Low coffee prices and small

farmers’ vulnerability

and disadvantage

mean they earn

too little for their

coffee.


Developing Countries Earn too Little coffee sold in a U.S. supermarket.

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
The Impact of Low Coffee Earnings On Coffee Farmers and their Communities

Chiapas, Mex.

San Cristobal de las Casas, Mex.


Impact of low coffee earnings
Impact of Low Coffee Earnings their Communities

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

Chiapas, Mex.


Impact of low coffee earnings1
Impact of Low Coffee Earnings their Communities

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 earnings2
Impact of Low Coffee Earnings their Communities

Migration

Farmers may leave their country, seeking work elsewhere. Tens of thousands of Mexican coffee farmers have left their land,

leaving behind grievingfamilies and weakened communities. Somecome to the U.S. without documents.

U.S.-Mexico border


What can be done
What Can Be Done ? their Communities

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
A Fair Trade Coffee Importer Agrees to: their Communities

Buy coffee grown

by small farmers organized into cooperatives (coops).


What is a coop
What is a Coop? their Communities

A cooperative (coop) is a business that is owned and democratically controlled by

its members.

Members, CIRSA Coop, Chiapas, Mex.


What is a coop1
What is a Coop? their Communities

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.

Coffee coop members, Nicaragua


A fair trade coffee importer agrees to1
A Fair Trade Coffee Importer Agrees to: their Communities

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 their Communities

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 neededequipment such as atruck to transport coffee, or to build a school or clinic.

Truck purchased by Mexican coop


A fair trade coffee importer agrees to2
A Fair Trade Coffee Importer Agrees to: their Communities

Purchase coffee directly from farmer coops, eliminating many “middle men” and opportunities for exploitation, providing higher prices for farmers.

Warehouse, CIRSA Coop, Chiapas, Mex.


Benefits of fair trade to farmers and their families
Benefits of Fair Trade their Communities 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.


Benefits of fair trade to farm communities
Benefits of Fair Trade their Communities 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.


Fairly traded coffee
Fairly Traded Coffee their Communities

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 certified coffee
Fairly Traded Certified Coffee their Communities

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
Where to Buy Fairly Traded Coffee their Communities

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 coffee1
Where to Buy Fairly Traded Coffee their Communities

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


Produced by their Communities

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 protected]

2006

,God is Still Speaking


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