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A new report by Oxfam has uncovered the devastating effects of plummeting coffee prices on some of the world’s poorest farmers. Helen Taylor investigates
You may not have noticed the savings in your shopping basket yet, but the price of coffee is at a 30-year low. Good news, surely?
Not for the 25 million coffee farmers of the developing world who are forced to sell their coffee beans for less than they cost to produce.
Their crops are earning them 70% less than they did in 1997. Yet we the consumer don’t see any of the benefits of that price drop.
Whenever you buy a jar of coffee, most of the money you pay goes to the big producers. And only about 6% of the retail price filters back to the farmer who grew it.
Meanwhile, the four major coffee companies Kraft, Sara Lee, Proctor & Gamble and Nestlé each have coffee brands that bring in more that US$1billion a year.
This crisis is being felt by coffee farmers in some of the world’s poorest countries, from Vietnam to Colombia, from Uganda to Honduras, where coffee is mainly produced on smallholdings and farmed by peasants.
The work-life imbalance for these farmers is off the scale. They are working longer and longer hours for less money. Some are selling off their land, while others leave home to find work elsewhere. And the burden of work for families who lose their head of household falls on the women and children.
Hunger is a daily reality for families who are earning less for their coffee, especially when farmers are driven to use more of their land to grow coffee and less for subsistence crops.
Schooling was one of the first casualties of the crisis, with children being taken out of school to work on the land. Now few families can afford to educate their children even if they want to.
Another essential that has fallen by the wayside is healthcare. Medicine has become a “luxury” that few can afford. Bearing in mind that many of the world’s coffee growers are from countries with substantial HIV/AIDS problems, such as Ethiopia, this is disastrous.
Some of the most vulnerable coffee farmers are those who work as seasonal labour for large landowners. It is very difficult for them to unionise, women are paid less then men and child labour is common. Many of these workers have now been laid off as a result of the coffee crisis.
The words of one coffee farmer in Uganda, who was interviewed by Oxfam, sum up the situation clearly:
“I’d like to tell people in your place that the drink they are enjoying is now the cause of all our problems. We [grow] the crop with our sweat and sell it for nothing.”
How we react to his words and to the coffee crisis will determine whether the globalised coffee market can work for these farmers and not just the coffee producers who profit from their labour.
Helen Taylor
h.taylor@unison.co.uk
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