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Mugged: The true taste of your coffee

 


Coffee. I’m obsessed with it… but here’s the thing, I don’t just drink Coffee, I grow it. If I tell you I am writing this from the UK – where ‘tropical’ tends to mean fruit juice and not the weather – you might wonder whether I have more in common with a fruit myself.



I have several coffee plants, and like most plants they tend to just… well, sit there. Keeping them happy is a daily task that involves constant ‘misting’ and fertilizing... but for me, coffee is a hobby and a nice way to wake up in the morning.


For 25 million others, producing coffee is a fragile living that can keep families from poverty... Or keep them in it.


At times my obsession has been comical– but coffee is a serious business and its market is deeply embedded in the cycle of extreme poverty.

In history, coffee has enjoyed the same value as gold… and wars were fought over it and societies formed around it.  The Sufis drank it to bring them closer to God, and until the 1500's priests named coffee the devil's cup.  The fact is, coffee is still causing controversy now. Controversy because the farmers who produce the world’s supply – for Nestle, Proctor and Gamble and Sara Lee- often don’t receive enough money to cover more than the cost of production.

We often talk about the importance of getting girls into education… but coffee farmers are increasingly pulling their daughters out of school because they can’t afford it. Coffee farming is labour intensive, and the relationship between coffee production and consumption requires a large network of transport, middlemen and infrastructure that puts a large number of workers and entire regions at risk when prices are low, harvests are bad, or both.

It’s called the ‘Coffee Paradox’ – where both producers and consumers of coffee lose out. For coffee, the problem is particularly severe as almost 70% of the world’s favourite drink comes from 7 million small scale farmers, not heavily commercialised plantations like tea or rice. There is also more coffee being grown every year than demand, meaning commercial buyers of green coffee beans are able to substantially undercut the production price through the risk of going elsewhere, and are encouraged to get the lowest price possible by an increasing fall in demand for coffee in the world’s cities.  




 


The expansion of cheap coffee production on a bigger scale in countries like Vietnam and Thailand also means that traditional growers of the fruit in East Africa and Latin America lose out to the new market despite producing a superior quality bean.

Drinkers of coffee lose out as while coffee prices crash worldwide, good coffee is becoming hard to find, ethical coffee harder and just between me and you? The coffee you thought was Arabica is more likely to be its rough cousin, canephora.



Think growing coffee in the UK is unusual? – chances are your morning coffee hasn’t seen home either, as coffee production is shifting toward South Asia and declining in Latin America and Africa where it grows naturally.    


It costs coffee farmers up to $2 or about £1.20 to produce a kilo of coffee… but coffee cherries are usually sold to middlemen at just 14 cents (about 8p). International coffee buyers like Kraft roast and sell them for a whopping price tag of up to $6 for just 100g.

 

After coffee companies pay all the costs involved in processing, the estimated profit is between 17 and 24% - or if you want to be technical, HUGE.



Coffee farmers are often trapped in a cycle of poverty – in order to sell at all they sell low and forego other costs such as healthcare or education, while receiving a price that is below production costs means that coffee farmers are unable to invest or save anyway.

New cheaper coffees being grown outside of typical coffee regions means that it is harder for these farmers to access the market – and Brazil, the largest exporter of coffee worldwide has switched to producing low quality, robusta coffee in order to compete – making high quality Arabica beans produced in developing countries the hardest to sell.

Fair trade is one way of making sure you’re coffee is not damaging lives. Buying arabica instead of cheap alternatives is another. You could also buy fresh coffee, which as a higher end product is more likely to have been produced fairly and often donates a percentage of profits back into coffee communities (check the label).

The best thing you can do is stay informed…  but keep drinking.
And I highly recommend Rwandan - It’s delicious.

 

Posted by James Smith in Poverty for column Issue Analysis on Sep 13th 2011, 22:08

Comments

13/09/11 10:31am - Posted By msolsyd - Reply to this comment
Is there any truth to the rumour that Fair Trade labelled coffee is not so fair? And that the fair trade coffee industry has itself been drawn into perpetuating the dearth of ethical coffee production?
13/09/11 10:44pm - Posted By Ashleigh - Reply to this comment
Msolsyd- From what I've read it's more an issue of brands that are Rainforest alliance certified as these brands don't need to be 100% Rainforest alliance approved in order to receive the certification on their products.

As for whether fair trade labelled coffee is not so fair I can say I haven't come across anything so far to suggest that it isn't fair to the farmers.
13/09/11 10:56pm - Posted By Nyya Linscomb - Reply to this comment
WOW! I am even more excited now....please, whoever is responsible for this article, get in contact with me ASAP! I have something else, in addition to this info that you would absolutely be amazed with regarding the coffee industry. I can be reached @ nyyalin@ yahoo.com
13/09/11 11:02pm - Posted By Audrey - Reply to this comment
I heard about that fair trade wasn't so fair but after I met a little guy in colombia who thanks to fair trade had been able to have his own coffee enterprise and was quite happy, so I still believe in fair trade. For my part I only buy organic and fair trade coffee even if I have to pay a higher price.
13/09/11 11:02pm - Posted By Audrey - Reply to this comment
I heard about that fair trade wasn't so fair but after I met a little guy in colombia who thanks to fair trade had been able to have his own coffee enterprise and was quite happy, so I still believe in fair trade. For my part I only buy organic and fair trade coffee even if I have to pay a higher price.
13/09/11 11:45pm - Posted By James - Reply to this comment
I wrote this article and would like to just take a second to address some of your concerns - there are some great comments here and I really appreciate the conversation this has started.

Opinions are mine, not representative of The Global Poverty Project:

1. Fair-trade is not a perfect system, and there are some valid comments to be made both for and against it. However, the guys at fair-trade are fantastic and I strongly believe that if we want to make fair-trade even better we should support the campaign by buying fair.. and with coffee production in its current state, fairtrade is often the only way in which some families can survive.

For more see:

http://www.fairtrade.org.uk/what_is_fairtrade/fairtrade_certification_and_the_fairtrade_mark/default.aspx
http://news.bbc.co.uk/1/hi/magazine/6426417.stm
http://orca.cf.ac.uk/6919/
http://econ.economicshelp.org/2008/08/fair-trade-arguments-for-and-against.html


2. I am a BIG fan of the rainforest alliance certification and as far as I am aware, the scheme has has a genuine impact with only the minor exceptions and criticisms you could expect of any organisation. Buying Rainforest Alliance is an excellent way to support coffee growing communities and others, protect the environment and help beat poverty in communities that depend on both.

3. Audrey - fair-trade absolutely makes a big difference to the lives of individuals and families who receive a premium. Some interesting articles about fairtrade changing lives:

http://www.fairtrade.org.uk/producers/default.aspx
http://uk.oneworld.net/guides/trade?gclid=CJ-MufOqmqsCFUQMfAodHhAbiQ#Fairtrade
http://www.guardian.co.uk/environment/2008/mar/12/ethicalliving.lifeandhealth
http://www.nicaraguasc.org.uk/campaigns/Fair%20trade/Fair%20trade.htm


I hope this helps and I'm glad you enjoyed the article - share with your friends and continue to support the movement to end extreme poverty.

You can make a monumental achievement today by signing our petition to end Polio. Every signature will guarantee the vaccination of a child who could be permanently disabled by this awful disease. Make a world without polio a reality now!
http://www.fairtrade.org.uk/what_is_fairtrade/fairtrade_certification_and_the_fairtrade_mark/default.aspx
13/09/11 11:49pm - Posted By James - Reply to this comment
The link should read: http://www.theendofpolio.com/home/

Help end polio today and pave the way for a monumental achievement. A child will be vaccinated for every signature supporting the movement - you can save a life with a name.
11/10/11 11:15am - Posted By Trisha - Reply to this comment
A bit sruprised it seems to simple and yet useful.

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