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

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.

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

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.

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

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

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.

The Impact of Low Coffee Earnings On Coffee Farmers and their Communities San Cristobal de las Casas, Mex. Chiapas, Mex.

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.

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

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

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.

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

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

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.

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:

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.

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

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.

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.

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

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

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 ( 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 Where to Buy Fairly Traded Coffee

Produced by Edith Rasell Minister for Workplace Justice Justice and Witness Ministries United Church of Christ 700 Prospect Ave Cleveland, OH , God is Still Speaking