1. 1. Describe the problems that coffee farmers like Pedro face. Explain and Analyse how this affects his business and family and country. Why will this cause them problems in the future? Link in development indicators Page 78 and Ex books. Level 4-6. 2. Explain in detail why the price of coffee has fallen and why have transnational corporations made more profit? Page 79 and Ex books. Level 5+. 3. Describe and Explain ways that coffee farmers could be helped. Explain how these would make a difference? What effect would they have on those involved? Evaluate what advantages and disadvantages are there for each solution? Page 80, videos and Ex books. Level 5-6+ 4.Describe with detailed evidence the ways that Fairtrade can help. Explain how these would make a difference? What effect would they have on those involved? Evaluate the advantages of Fair Trade? Identify biase in the sources. Page 80, videos, Ex books and your Fairtrade fact file. Level 5-7 4. Conclusion: What do think is the best way to help the coffee farmers in LICs? Give detailed reasons why. Page 80 and Ex books. Level 6-7 Your essay should be in five parts.

2. Example 1 What Level? Point: Coffee farmers in LICs are worried because the price of coffee has fallen and they are getting poorer. Evidence: The price of coffee fell from £2.00 per kilo in 1998 to £0.70 per kilo in 2000. Explain: The price of coffee fell because too much coffee is being grown. This is because the World Bank and other organisations encouraged LICs to grow more coffee to make money to pay for development. The LICs did not make plan together, instead they grew more coffee and competed against each other. This created a buyers market. With so much coffee available, buyers could drive the price down.

3. Example 2 What Level? Solution: Fairtrade can help farmers in LICs. It pays a fair price. Enough to live on and a profit which farmers can use to improve their farms and the lives of their families. It buys the coffee direct from the farmers, so it cuts out the exporters, so the farmers can get a larger share. Explore: It pays some of the money in advance, so the Farmers do not run short and can pay expenses like school fees for their children. The children will then have a chance of a better life than their parents and will make more money. Their government will then make more tax from their higher earnings to help their country develop. Fair trade also pays a social premium that farmers can use to improve their businesses and communities. Examples: In Nicaragua the Prode Co-op has used this to pay for scholarships for children to learn new skills, such as coffee blending, to help them get a better job in the future. In Uganda farmers have used the premium to pay for warehouses to improve their businesses and to build clinics to bring health care to their community. Conclusion: Fair trade is the best way to help farmers and their families because it is provides more money to live on and to invest in the future. It helps to improve communities through the social premium. It also helps development as the farmers can work their way out of poverty and the taxes they pay can be used to pay for development.

4. Example 3 What level? Comparison: Another way to help the farmers would be put a tax on the profits of TNCs that process and sell the coffee in HICs. Analysis: The advantage of this is that the money could be given to the farmers. However the TNC’s need to make a high profit for their shareholders, so increasing tax has a disadvantage. The TNC may put up the price of the coffee that they sell to customers in the supermarket. This would effect everyone who buys the coffee. An advantage of Fairtrade is that the Fair Trade logo gives people the choice to pay a bit more to help the farmers if they choose to buy Fair Trade. Another disadvantage is that the TNC might also choose to avoid the tax by moving it’s factories and offices to another country where it would not have to pay that tax. This could mean people in HIC’s could lose their jobs. Evaluate: The evidence about Fairtrade came from the Fair Trade Foundation, so might be biased since they want people to buy products with the Fairtrade logo. However the examples in Nicaragua and Uganda showed that it had made an improvement to farmers lives and their communities without forcing everyone in HICs to pay more for their coffee.