Fair Trade Coffee Essay

1186 words - 5 pages

Fair Trade Coffee

Fair Trade promotes socially and environmentally sustainable
techniques and long-term relationships between producers, traders and

The world coffee industry is in crisis. A flood of cheap,
lower-quality coffee beans have pushed world market prices down to a
30-year low. Many now earn less for their crop than it cost them to
grow. Many coffee farmers around the world receive market payments
that are lower than the costs of production, forcing them into a cycle
of poverty and debtWithout urgent action, 25 million coffee growers'
face ruin.

The knock-on effects for national economies are just as catastrophic.
30 years ago, LEDCs received around 30% of the total value of
international coffee sales. Today, this has slumped to just 10%. As
export earnings from coffee shrink, national economies fail and the
first casualties are government education and health budgets.

chart of profit distribution

Coffee is a multi-million dollar industry, but the profits don't go to
the people who actually work so hard to grow the coffee beans, and
carry all the risks of failing crops or falling prices. Most of the
profits go to the shippers, roasters and retailers

chart: coffee producing areas Coffee grows only in the tropics. Mostly
small farmers grow it as a cash crop, a crop that they can sell to try
to make a living.

These farmers are poor, and they do not have any reserves of money to
support them when their crops fail or when coffee prices are low. The
small farmers have to sell their coffee beans when they are ready to
be harvested, and take whatever price the coffee buyers offer.

The governments of many coffee-growing countries have very large
external debts. Therefore the governments need to export in order to
get the hard currency with which to repay the debts.

The coffee-growing countries are forced into competition with each
other, each trying to get a bigger share of the market. This means
that they all produce more and more coffee. As a result, there is too
much coffee on the world market and the price falls, so each country
has to try to sell more coffee to make the same amount of money

chart: coffee consuming countries

Most of the world's coffee is bought by just a few countries, and most
of the world's coffer market is controlled by a very few companies.

Just nine countries in the North import over 70% of the coffee on the
world market.

graph: yearly price fluctuautionsThe weather can destroy coffee crops.
The chart shows how world coffee prices suddenly rose as a result of
serious damage to the Brazilian coffee crops (20% of the world's
coffee) in 1975 (frost), 1984 (drought), and 1994 (frost).

When prices are high, small farmers often plant more coffee bushes, in
the hope of making a little more money. However,...

Find Another Essay On Fair Trade Coffee

Fair Trade Essay

1820 words - 7 pages trade in general is one of the fastest growing markets in the world (TransFair). The acknowledgement of exploitation and unfair treatment is starting to become internationally known. Even though it is a fast growing market, normal trade still accounts for the majority of business. Fair Trade ensures that the farmers are guaranteed some sort of sustainable income. By having the consumers pay an average of $1.90/lb more for Fair Trade coffee, the

What are Fair Trade Goods Essay

845 words - 4 pages , Fairhills Wine, Green Mountain Coffee Roasters, Theo Chocolate, and Blends for Life, along with Ben & Jerry’s Ice Cream are companies that engage in fair trade. The first ice cream company to use Fair Trade ingredients, Ben & Jerry’s launched their Fair Trade venture with their coffee flavors in 2005. Ben & Jerry’s plans to be 100-percent Fair Trade sourced, by the year 2013. As a major company in the public eye, Ben & Jerry’s movement into ethical

Labour relations of coffee, in Brazil

1723 words - 7 pages much cheaper than paying them properly. At least, there are some people who are actually putting some effort on solving this problem. This is where the issue involving coffee in Brazil comes in. The actors involved in this product are either greatly benefited or exploited and the working conditions for the farmers are quit terrible. However, there are solutions that were proposed in order to protect the coffee growers such as fair trade. It is

Impacts of Banana and Coffee Farmers due to Trade Agreements

1561 words - 7 pages "Agriculture is undoubtedly the most important activity for the majority of the world’s poor, and at the same time it is the most protected sector in industrial countries." Agriculture continues to play an important role throughout the world, while in recent years, farmers have been negatively and positively affected by the trade agreements established by both the WTO and Fair Trade system; specifically the banana and coffee farmers. The

Starbucks Sells Fairtrade International Coffee

566 words - 3 pages stockholder’s meeting in Seattle to not only sell, but also to pay farmer fair prices (James). The consumers’ strong advocacy led Starbucks to announce “an agreement with TransFairUSA to offer Fair Trade Certified coffee at all its stores nationwide” (James). This interaction between producers and consumers forms the bases of Fairtrade relationships, allowing for advocacy and reform on global level. Principle 5: Fair Trade as a “social contract

Confronting the Coffee Crisis

1097 words - 5 pages benefit from producing other crops. And yet, the opportunity cost for farmers to switch to another product is higher than the cost of coffee in a low profit market. So, this book discusses different strategies that are being used to help producers get a better advantage to provide a living for their families. Different strategies being used include shade-grown coffee, differentiation of products, organic coffee, cooperatives, and fair trade. Some

The Fetishism of Coffee in America

1343 words - 5 pages the loss in profit is by having their coffee certified as fair trade. Fair trade implies that the producer will be compensated a guaranteed price, at all times, regardless if the market fluctuates, furthermore trading arrangements are reasonable for the farmer or co-operative handling distribution of coffee (Kolk 2013:327-28). Fair trade also allows consumers to consider the type of product being purchased by informing them of the fair and ethical

Marketing Analysis of Costa Cafee in the UK

3424 words - 14 pages for a sandwichMoreover, Costa optionally uses the Fair Trade principle on coffees, which induces a 10p price increase. The Fair-Trade Foundation is a non-profit organization which provides independent certification of Fair Trade products in the UK market, aiming to educate consumers about fair-trade and economic development. In Costa's case, it allows coffee growers to work in better conditions and to receive fair price for their harvest, thus

Labour relations of coffee, in Brazil

1767 words - 7 pages cheaper than paying them properly. At least, there are some people who are actually putting some effort on solving this problem. This is where the issue involving coffee in Brazil comes in. The actors involved in this product are either greatly benefited or exploited and the working conditions for the farmers are quit terrible. However, there are solutions that were proposed in order to protect the coffee growers such as fair trade. It is then

Organic Coffee

3364 words - 13 pages declining farm prices . Between Jan. 1 and June 30, 2002, Allegro's weighted average price per pound paid to farmers and cooperatives excluding fees and taxes were $1.47 for sustainable grown, specialty coffee, and $1.46 per pound for certified organic coffee. This is, on average, between 5 cents and 21 cents per pound above the internationally recognized fair trade price for specialty and organic coffee(1),Our company vision is not necessarily to

Intoxication for Breakfast, and Isolation for Dinner

1713 words - 7 pages harvest the coffee. According to the article titled Cuanto Cuesta su Taza de Café (How much is your coffee?) publish by the independent newspaper El Faro, the ongoing rate to harvest coffee is $1.25 for 25 pounds. Children's that work in this coffee estates collect average 100 pounds per workday, which is a total of $5.00 per day. However, Companies such Starbuck, Peet’s Coffee and Tea, and McDonald's obtain fair trade coffee, which is coffee produced

Similar Essays

Fair Trade And Coffee In Third World Countries

1167 words - 5 pages Fair trade is defined as “a movement whose goal is to help producers in developing countries to get a fair price for their products so as to reduce poverty, provide for the ethical treatment of workers and farmers, and promote environmentally sustainable practices” (Merriam-Webster Dictionary, 2014). Whether or not we can ensure the fair trade of coffee in exchange for a good living brings up a lot of discussion and controversy in the trade and

Coffee Industry In The Uk Essay

1577 words - 6 pages , socially, environmentally, and economically responsible. This is reflected in the coffee industry by an increased demand and rising market value for sustainable coffees such as certified coffee and fair trade coffee, which guarantees a fair price to producers. The fair trade market which is now worth £100 million, is growing with developments such as Tesco’s launch of their own Fair trade range. Fair trade is also a means by which the coffee shop

Fair Trade: A Mutually Beneficial System

1586 words - 6 pages Fair Trade is a trading partnership that seeks greater equity in international trade by maximizing the benefits of the stakeholders involved (“WFTO”). Nearly all (93%) of the Starbucks Coffee Company coffee was ethically sourced through Coffee and Farmer Equity (C.A.F.E.) practices, which include the fair trade system (“Responsibly Grown”). In January 2013, more than 1.2 billion profits from the sale of Kit Kats supported over 7,000 fair trade

Fair Trade Labeling Essay

756 words - 4 pages . International trade has become a disadvantage to the developing countries because they have loosened their trade barriers in contrast with the wealthy countries. Such disagreements created tensions between countries which lead to unfinished meetings and edgy relations. 3. Ill begin with the first article I found called ‘Does Fair Trade Help the Poor?’ written by Joe Carter. Fair trade is mainly explained by using coffee as the main example throughout