A Cup of JusticeCoffee,

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.

World Price of Coffee,* 1976-2005(adjusted for inflation)

$5.24

$1.86

$0.89

$0.51$0.00

$2.00

$4.00

$6.00

19761979

19821985

19881991

19941997

20002003

per

po

un

d (

2005

$)

* Adjusted for inflation est. at 3% / year Source: International Coffee Organiz.

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 smallfarmers’ 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 theircoffee to international buyers androasters. 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 providea 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 byits 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 PremiumThe 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 Tradeto Farmers and their Families

Better education, health, and opportunities due to the social premium payment.

Higher incomes.

Greater access to credit for investmentand other needs.

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.

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 USAcertifies 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 (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 unavailablewhen they request it.

The Bottom Line:

Watch for the Fair Trade Certified logo

Where to Buy Fairly Traded Coffee

Produced by

Edith RasellMinister for Workplace JusticeJustice and Witness Ministries United Church of Christ700 Prospect AveCleveland, OH 44115-1100216-736-3709raselle@ucc.org2006

, God is Still

Speaking