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You are at:Home»Uncategorized»Coffee for cash – a fair trade?
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Coffee for cash – a fair trade?

Grocott's MailBy Grocott's MailNovember 5, 2012No Comments3 Mins Read
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The next time you take a sip of your favourite frothy cappuccino, remember that the beverage you’re enjoying was almost certainly produced by an impoverished third-world family.

Every year some 20 to 25 million small-scale farmers across Asia, Africa and Latin America produce 70% of the world’s coffee, many of these families living in a state of poverty.

The next time you take a sip of your favourite frothy cappuccino, remember that the beverage you’re enjoying was almost certainly produced by an impoverished third-world family.

Every year some 20 to 25 million small-scale farmers across Asia, Africa and Latin America produce 70% of the world’s coffee, many of these families living in a state of poverty.

The origins of coffee are in Ethiopia. The drink was first brewed in much the same way as tea, by soaking the leaves and dry seeds (not beans) in hot water. It was only when coffee travelled through the Arab World to the Ottoman Empire that coffee was roasted.

Its trade to the Western World first began around the time of the Industrial Revolution, between 1750 and 1850, and replaced the drink of the times – beer – because its caffeine content could increase the productivity of factory workers.

Today Americans are the world’s biggest coffee drinkers – consuming some 25% of its global production that is primarily produced by impoverished small- scale farming families in countries like Nicaragua, Brazil, Kenya and Indonesia. These places also happen to be some of the most diverse and threatened ecosystems on the planet.

Indonesia produces the world’s most expensive coffee from beans that are consumed and then partially digested by the Kopi Luwak – the common palm civet. A cup of this brew will set you back $50.

So is there a way to enjoy coffee without feeling guilty about the origins of what you're drinking?

Yes, and it's through an initiative called Fair Trade Coffee. The global Fair Trade initiative has become involved with coffee and other products in a way that helps to ensure the livelihoods of the people growing the produce and the ecosystems in which they are grown.

Fair Trade efforts purchase coffee from the producers at a higher price than standard coffee buyers and fits in with environmental and socially-conscious trends sweeping consumer behaviour.

The general trend in coffee markets not under Fair Trade is a shift of power and profits from roasters to retailers, with low profits forcing many producers out of coffee farming. Fair Trade Coffee may be more expensive but it will prevent small-scale farmers from being abused and allows you to enjoy a socially-responsible cup of coffee.

* This piece was written as a requirement for a course in the Economics and Economic History Department at Rhodes University

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