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MUGGED: POVERTY IN YOUR COFFEE CUP

Millions of people in 45 coffee-growing countries are facing economic ruin ­ and many going hungry ­ due to collapsing world prices.

Oxfam’s latest report shows the global market is oversupplied by 540m kilograms of coffee each year. Coffee farmers are getting, on average, 24 cents a pound while consumers in rich countries are paying roughly $3.60 a pound ­ a mark-up of 1500%.

You can access this report from the Link to an external websiteOxfam website

WHAT'S IN YOUR COFFEE?

Oxfam are calling for the four major coffee companies ­ Kraft, Sara Lee, Proctor & Gamble, and Nestlé ­ to make sure that poor farmers receive a decent price.

The campaign is also targeting Western governments and global trade leaders, who have stubbornly resisted global calls for fairer international trade rules.

For the campaign to succeed, your help is needed. You have real power ­ as a voter and as a consumer ­ to bring about change.

To find out more, log on to Link to an external websitewww.maketradefair.com and take action online. Or call Oxfam on 01865 312610 to find out how you can get involved. You can also buy Fair Trade coffee and other Fair Trade products ­ look out for the new Fair Trade mark.

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

Coffee crisis?

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

GETTING CO-OPERATIVE

Guatemala has just gone through a 36-year-long civil war, during which 200,000 people were massacred and a million became homeless.

“80% of people in Guatemala are living in poverty and nearly a third can’t read or write,” explains Oxfam's Angelique Orr.

Coffee is a major export for Guatemala, with one in four of the population dependent on coffee. But 60 families owning 80 per cent of the land.

“Whole families are housed in huge barns where they don’t have any privacy. They are expected to work very long hours and the children don’t have access to school,” says Ms Orr.

Their working conditions have always been poor, but now the international coffee crisis has hit the country hard. In 2001, plantation owners were receiving about £6.50 for 100lbs of coffee. This year, that dropped to £1.80, which meant a cut in wages for coffee pickers from £1.80 a day to less than 50p.

Oxfam has started working with partner organisations such as ECAO, which supports small-scale farmers in the production of organic products by helping them set up co-operatives.

Ms Orr visited one such co-op in the Solala region, which was set up in 1990 and now includes 64 farmers from 4 villages. The co-op not only grows and picks the coffee, but also processes it so that members can profit directly from its sale.

One worker, Don Pablo, says the co-op has really helped.

“I was treated very unfairly in the past because I was paid so little by the landowners,” he said. “It feels much better now because I’m working for the good of my family.”

Children, too, have benefited. Since the co-op was set up, the four villages that belong to it have built a school with their profits.

It’s a drop in the ocean when you consider how many people in Guatemala depend on coffee. But it clearly illustrates that empowering workers benefits the whole community.

And it’s a salutary reminder that it really does matter where your next cup of coffee comes from. By buying Fair Trade you can be sure that your coffee is providing farmers like Don Pablo with a decent income not a poverty wage.

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