Cost of coffee.indd - RISC
Cost of coffee.indd - RISC
Cost of coffee.indd - RISC
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
key ideas<br />
◆<br />
◆<br />
◆<br />
◆<br />
In response to the c<strong>of</strong>fee crisis, initiatives from the big c<strong>of</strong>fee companies include:<br />
introducing certified fair trade or environment friendly brands, buying direct from farmers,<br />
sponsoring development projects in c<strong>of</strong>fee growing areas, providing training to improve<br />
c<strong>of</strong>fee quality and grow alternatives to c<strong>of</strong>fee, stimulating demand by developing and<br />
promoting new c<strong>of</strong>fee-based products, supporting sustainable agriculture initiatives,<br />
lobbying for an end to subsidies to US and EU farmers which prevents farmers in<br />
developing countries from exporting their produce.<br />
However, Oxfam produced a follow-up report in 2004 which analysed and scored the ‘Big<br />
Four’ c<strong>of</strong>fee companies on their actions to help solve the crisis. Although some progress<br />
had been made, none scored higher than 50% and Oxfam continues its call for consumers<br />
to maintain pressure on the companies.<br />
Critics <strong>of</strong> the c<strong>of</strong>fee companies welcome their initiatives but argue that they do not go far<br />
enough. They give the impression <strong>of</strong> corporate responsibility and concern about the ‘c<strong>of</strong>fee<br />
community’ with well publicised new ethical brands aimed at niche markets, but do not<br />
change core business practices. Some are setting up subsidiaries along the supply chain<br />
(vertical integration) to increase their control and pr<strong>of</strong>its. Others are exploring GM c<strong>of</strong>fee<br />
varieties which will enable ripening to be ‘switched on’ so harvesting can be mechanised.<br />
This will increase production even more and undermine small producers.<br />
Critics argue that if new sustainable/fairtrade c<strong>of</strong>fee brands are as good for the future <strong>of</strong><br />
farming communities as their publicity claims, why are these beans not used in more<br />
products?<br />
follow-up<br />
◆ Hand out the spider diagram and allow participants time to compare with their own.<br />
◆ Produce a radio programme, poster or leaflet on the c<strong>of</strong>fee crisis from the point <strong>of</strong> view <strong>of</strong><br />
the c<strong>of</strong>fee companies or their critics.<br />
causes <strong>of</strong> low world c<strong>of</strong>fee prices<br />
20<br />
sluggish demand<br />
control <strong>of</strong> supply chain<br />
farmers continue to grow c<strong>of</strong>fee<br />
consequences<br />
• environmental degradation from intensive<br />
farming<br />
• deforestation from cutting shade trees – soil<br />
erosion & loss <strong>of</strong> habitat for birds etc<br />
• increased application <strong>of</strong> chemical fertliser,<br />
herbicides & pesticides – run<strong>of</strong>f into water<br />
system<br />
• farmers turn to lucrative drugs trade,<br />
eg chat, coca, marijuana<br />
higher yields<br />
price volatility<br />
solutions<br />
• reduced foreign exchange earnings for c<strong>of</strong>fee<br />
exporting countries to repay debt<br />
• rural poverty<br />
• unemployment on plantations; lower wages<br />
& poorer conditions<br />
• increased debt; farmers sell animals & food<br />
crops intended for own consumption; suicide<br />
among farmers<br />
• fall in health and education indicators,<br />
especially girls<br />
• migration to urban slums<br />
• reduced government spending on health,<br />
education, agriculuture, development<br />
programmes
Change language