A Cup of Justice

1
A Cup of Justice

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

2
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
3
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.
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5
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Small coffee farmers, their families and
communities are suffering
5
What Is Happening in the Global Coffee
Industry ?
Ethiopian coffee farmer
6
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.

7
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.
8
Small Farmers Earn too Little

• Low coffee prices and small
• farmers vulnerability
• and disadvantage
• mean they earn
• too little for their
• coffee.

9
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 worlds
  coffee.
• Just four companies
• purchase 40 of the
• worlds coffee.

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

Chiapas, Mex.
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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
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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
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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.

15
A Fair Trade Coffee Importer Agrees to

• Buy coffee grown
• by small farmers organized into cooperatives
  (coops).

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What is a Coop?

• A cooperative (coop) is a business that is owned
  and democratically controlled by
• its members.

Members, CIRSA Coop, Chiapas, Mex.
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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.
Coffee coop members, Nicaragua
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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.

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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.
Truck purchased by Mexican coop
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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.

Warehouse, CIRSA Coop, Chiapas, Mex.
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Benefits of Fair Tradeto 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.

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Benefits of Fair Tradeto 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.

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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.

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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

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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/)

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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

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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_at_ucc.org 2006
, God is Still Speaking