Black Gold : The World Coffee Market And An Ethiopian Fair Trade Cooperative

Recently people have become more and more conscious of what they put into their bodies and where it comes from. An unprecedented amount of information is now readily available to most Americans with the advent of the Internet. This has resulted in a great increase in transparency of the many aspects of imported products. Consequently, programs have been established to help ensure that these products are produced in more ethical and humane ways. To many Americans, the Fair Trade labeled bags of coffee they purchase that give them the energy they need to go about their day in addition to being a socially conscious decision but to many it is a means for survival and an escape from a cycle of debt that traps many similar non-Fair Trade growers generation after generation

The growth of the coffee industry is expected to keep growing even become larger in the near future. Without new innovation the industry would never grow. There have been some tiny and some large changes in the coffee world that in toll add up to a new experience that many cannot refuse to be a part of. One of the goals of many coffee shops is to make the customer comfortable and happy. To do this many Starbucks’ around the world have installed new wireless charging stations in there stores so that when costumers are there they can easily charge their phones without worrying about bringing a charger of their own. This new addition to the stores is just one part of getting ready for the future. Phones and technology in general is a huge part of everyday life and this has to be incorporated into many places people shop. By adding technology to stores it makes the entire buying process more streamline. Starbucks has also integrated the use of phones in to the payment system at every store. Customers use their own phone that has a barcode to pay for their goods. With just the touch of a button the entire buying process can be completed. This makes it easy because you do not need to worry about remembering your wallet all you need is your phone and many people already have it with them. Included in the app is also a rewards system that provides user with rewards bases on how often they go and even recommendations for what a customer may enjoy next time. One of the newest changes

In Columbia, there are numerous industries. Most of them are natural ones such a coffee growing or sugar cane. Columbia is developing new forms of sustainable growing practices for their primary crops, as it not only benefits the environment, but also the profits of the major agricultural companies. These are beneficial for the environment because instead of tearing down beautiful forests to put up a building, the sustainable farming methods are helping to preserve the forests while increasing the quantity of crops of coffee and sugar cane. While organizations are working to improve sustainability, an already existing issue exists, a lack of workers. Although Columbia may be facing challenges such as a lack of workers,

According to Lyon, Bezaury, & Mutersbaugh (2010), Fair-trade is a “process which helps improve the well-being and economic stability of disempowered farmers, by using certified commodity-chains to foster development”. For the KHC company, Fair-trade is essential because they want to provide and endorse exceptional coffee beans that they are proud to use; that means, “using coffee that is good and fair for both our coffee drinkers and for farmers are essential” (Kicking Horse Coffee, n.d.). In fact, over the past 20 years, Kicking Horse won numerous awards in many categories, including Canada’s Fastest- Growing Companies, Canada’s Top Women Entrepreneurs, Canada's Favourite Fair-trade Product and number 15 Best Workplace in Canada (Kicking Horse Coffee, n.d.).

From the New York Times the article: “Coffee’s Economics, Rewritten by Farmers”, illustrates how Kenneth Lander, a lawyer in Monroe, moved with his family to a coffee farm in San Rafael de Abangares, Costa Rica. Mr. Lander was looking for a more balanced life between work and his lifestyle. Mr. Lander started growing his own coffee from 12 acres of land that yielded 6,000 pounds of specialty-grade coffee beans a year. But in 2008, his financials started to dwindle, and he quickly struggled to support his family. Farmers in his similar financial situation usually turned to organizations like Fairtrade International who typically bailed them out, but for Mr. Lander, he sought out innovative ideas. He began to roast his own beans and sell them

It is a globalised world. Being a part of this progressive society, growth is a key indicator of success. Global Trade is one such benchmark that differentiate nations and economies. Every nation has some policies to promote the strengths of their trade globally. Likewise, Colombia has been known to be the third-largest producer of coffee after Brazil and Vietnam (in terms of volumes produced) from a long-time. Coffee is the world’s most traded commodity and most of it is produced by the small-scale farmers. Hence, globalisation has had a great impact on its production as well as trade. Therefore, Colombia’s strength lies in the production of coffee but also promoting their strengths and honing them globally to their benefit. Coffee is not just a cash crop for the Colombians but it’s a way of life for them. The farmers associated with the credulous society of small scale coffee growers called National Federation of Coffee Growers of Colombia (NFC) (1) was founded in the year 1927.

The strategies that are proposed in this clip for changing this situation are for coffee growers to adapt to the fair-trade market. Under the fair-trade market coffee growers will have the chance to a decent market price that will help increase their production.

In looking at the history of coffee through the book Uncommon Grounds, we have seen coffee move throughout the world. Coffee originated in Ethiopia and grown wildly that was discovered by a goat name Kaldi. It was first eaten as a berry, then boiled, then roasted and finally, grinded to what we now know drink today and have created new ways to drink it as well. Coffee is the second most traded commodity and is grown in the Southern Hemisphere and consumed in the Northern Hemisphere. Here in the United States, it is evident that Americans love their coffee and drink it many times throughout the day. It can be argued that the “world coffee supply would continue to grow, stimulated in large part by the seemingly bottomless American coffee cup.”

This aspect of the dependency theory is mentioned in Black Gold in a couple of ways. The first is the extreme contrast from how mal-nutrient labors produce coffee bean in harsh and poor nations to delicate cafes and coffee houses in the wealthy parts of the world. The predicament that Ethiopian farmers have faced makes them dependent on core nations for economic sustenance. As the documentary shows, the vicious circle of coffee trade is going to keep wealthier nations in Europe and America in the position of economic control. Poor nations like Ethiopia, however, will continue suffering from the unfair international trade unless they have a chance to improve the global system.

The need for the Tadesse Meskela to inspect the entire trading process of coffee beans in order to prevent exploitation from the marchants is the other example of dependency theory. While coffee beans have been harvested less and sold in lower price, the meager profit from the sale of coffee beans is not enough to satisfy most of the coffee farmers; not to mention fostering the whole poor nation into economic independence. The miserable condition of Ethiopia makes them dependent on wealthier nations for survival, whereas they are powerless to determine the price of products. As Tadesse Meskela indicated, “Price is mainly based on the New York ‘C’ market. If New York is down by five cents today, the coffee exporters are going to buy the coffee

The price of commercial coffee is controlled by the New York and London exchange markets where they decide the prices of coffee(Francis, 2006). Most of the buyers and seller that deal in the trading of coffee usually look at the New York market to make their decisions on the prices. Also the World Trade Organization is involved in controlling trade of commercial coffee, but these decisions and the way stuff is traded is controlled by developed nation and small undeveloped countries in Africa have to say or voice in

In bargaining power of suppliers, the interest for coffee is high in worldwide level and espresso beans can be produced just in certain geographical zones. Also, the issues connected with African espresso producers being dealt with unjustifiably by multinational organizations are generally determined with the endeavors of different non-government associations, and this is helping the expanding bargaining force of suppliers.

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

Thus, Starbucks exploits the situation brought about through globalisation, as their "Workers earn two cents a pound for picking berries," says Eric Hahn of the Chicago-based U.S./Guatemala Labor Education Project, whilst ”Starbucks turns around and sells a pound of Guatemalan coffee beans for nine dollars” (Zielinski, 1995). However, Alex Singleton, a fellow at the Adam Smith Institute claimed that 'Starbucks has done more to lift coffee farmers out of poverty than almost anyone else - including Oxfam and the do-gooders,’ (Davis, 2008). Believing that "the answer to development is not large amounts of foreign aid [rather] it’s getting these countries to engage in the global market, and Starbucks helps that’ (Davis, 2008). Certainly, Starbucks has provided work for farmers living in poverty. Although, Starbucks relationship with the farmers was solely developed for the purpose of exploiting and using these farmers and their workers to gain maximum profit by paying $0.57 per pound of coffee sold to the farmers, that’s 2.2 per cent of the $26 per pound it sells for in the United States (Davis, 2008). Thus, not only are Starbucks exploiting the poverty stricken farmers of Guatemala through underpaying them, but they are also forced to work in virtual slave conditions in an unsafe and unsanitary environment. Hence, Starbucks uses the Globalised world to

The film highlights the fact that coffee is the most valued word commodity, second to oil. The beginning of the film shows the process in which coffee is made- from bean harvesting by workers in Ethiopia who make next to nothing, through several intermediated stages, and into the market. Although we spend countless amounts of money on coffee without thinking twice, the price that coffee farmers who produce this commodity are getting paid, is disgustingly low. Some of them have even been forced to walk away from their fields. There is no better place to see this