Fairtrade & the Human Rights of Coffee Workers and Producers

Coffee is not just a drink. It’s a global commodity. Multinational coffee companies now dominate the industry worth over $80 billion, making coffee the most valuable trading commodity in the world after oil. While we continue to pay for our lattes and cappuccinos, the price paid to coffee farmers remains so low that many have been forced to abandon their coffee fields. This conundrum is most evident in no place other than Ethiopia, the birthplace of coffee.

Finally, global economic issues have an immense influence on the world of coffee. Throughout history there has been a pattern that coffee producing countries are economically worse off than those that are consuming the coffee. Pendergrast mentions that “in 1950 the average income in consuming countries was three times that of coffee-growing nations. By the late 1960s it was five times great” (270). With that said, many producing coffee countries were facing endemics and malnourished peoples because workers were receiving absurdly low wages thus placing them into poverty and human suffering (271). Specifically, although 90 percent of El Salvador’s exports consisted of coffee in the 1930s, they agonized from “‘low wages, incredible filth…[under] conditions in fact not far removed from slavery’” (168). Global economic issues of these producing countries lead to dictators easily gaining power such as those in Guatemala, Nicaragua, and Honduras (170). Not only was politics a matter that resulted from global economic issues, “the high interest rates from financial institutions and price [squeezes]” lead to the economic struggle of farmers like those from Colombia due to

“Starbucks” only uses “FairTrade” espresso beans for their espresso coffee. “FairTrade” coffee is more expensive since more money is put into the farmer’s hands. However, there have been claims that the farmers are not actually being paid as

In “Free Trade, Fair Trade, and Coffee Farmers in Ethiopia,” written by Daniel Lee and Elizabeth Lee, they discuss the hardships that Ethiopian coffee farmers face. Ethiopia, being one of the poorest countries in the world, depends heavily on their production of coffee. With a population of 78 million, over 15 million participate in the world coffee production. Despite Ethiopian coffee being labeled as one of the best in the world, there is no substantial protection for farmers when the price of coffee

Most coffee growing regions are also home to some of the most delicate ecosystems on earth, therefore it is imperative that the money being profited from this luxurious treat is trickling its way back down to support, not only the workers, but the environment as well. Unfortunately, it has not. In an article titled, “How Green is You Coffee?” writer Michael Jenner clearly depicts just what exactly is happening and how it is hurting our planet earth. “The biggest source of environmental damage where coffee is concerned comes during the production of the beans themselves. The global surge in demand has had a profound effect on the growing methods used with massive implications on sustainability” (2015.) The use of shaded canopy trees allowed the beans to grow naturally and provide a habitat for indigenous species. It also prevented topsoil erosion and erased the need for any use of chemical fertilizer. As soon as market demands grew this organic growing process soon changed to a quicker and more profitable form of agriculture better knows an ‘sun cultivation.’ “Originating in the 1970s, sun-grown coffee is produced in plantations, with no forested canopy, which has resulted in fertilizers becoming a necessity and has had a seriously detrimental effect on biodiversity” (Jenner 2015). WWF recently made the

There are variety of ethical challenges that FLO is trying to address and since inception in 1988, have managed to solve some of them. They also comprise the challenges that befell farmers while using the traditional approach. The first ethical issue that FLO tries to address is transparency. Transparency shows a true reflection of facts as they are and this ways prevents situations of mistrust. The concept of transparency is linked to good corporate governance. In this situations, the companies and middle men that form the agricultural chain supply should provide farmers with the right market prices for their produce and supply the right input to ensure efficiency. For instance, if they are providing high-yielding seeds they should so and not take low-yields and pass them as high-yield. According to Nayak (2014), the conventional system has continued to increase the number of middlemen and this has increased the opportunities for cartels who reduce the prices for farmers and increase the prices for consumers. FLO ‘s goal is to provide accurate and comprehensive information in an accessible manner. According to the website, “all terms and conditions of Fairtrade transactions are detailed in contracts” which are signed by both the farmers and buyers (Fairtrade International 2016).

In the early 1990s, Smith and Shultz were able to see the importance of the environment in which coffee was sold. In the past, coffee was generally treated as a commodity and quality was considered secondary to cost. Both men saw the opportunity to expand this experience, particularly the

Thus, they have used (even certified) reputable farm’s names to designate their purchases as authentic gourmet (single origin). Coffee board of Kenya (CBK) data indicates that the average F.O.B. price of re-graded coffee was US$6.81/Kg in 2002, more than four times the auction average of US$1.54/Kg. Experts have attributed the drastic fall in coffee prices on the international markets to the oversupply of beans, which has not been matched by demand. However, according to the British charity, Oxfam, the issue is more to do with fair global trade than just market demand and supply factors.

Treating producers in a fair way is a topic, which many believe is a responsibility of transnational corporations. The coffee sector is an example, where

The organization that I have chosen to analyze in this paper is Starbucks. Starting as just a single coffeehouse in Seattle in 1971, Starbucks has now grown into a multinational corporation with over 23,000 stores worldwide. (Smith) With a vision that stemmed from Italian coffeehouse tradition, Starbucks set out to become more than just an average coffeehouse, they wanted to provide their customers with excellent coffee but also a personable connection. Their mission is “to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time” (Starbucks). At the top of their priority list is quality however Starbucks is also passionate about ethically sourcing only the finest of coffee beans, roasting them perfectly and the most important part being improving the lives of the people who grow the beans.

When contemplating whether to conduct business in another country, it is essential that Australian Clean Green Coffee Production assess the currents ethical standards of the nation in question. Guatemala has been ranked as the “135th most unequal country in the world out of 147 countries” (Verite, 2012). Three core ethical issues facing the Guatemalan coffee industry are forced labour and work conditions, child labour, and the environmental impacts of farming. It is estimated that “in Guatemala, about 506,000 children aged 7-14 years, representing 20% of total children in this age group, are engaged in market work” (Dammert, 2010). The main contributing factor as to why child labour is

This will not only safeguard the interests of 6,200 small scale coffee farmers, but also facilitate the maximization of returns from their coffee sales proceeds creating a sustainable community.

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

Considered one of the most important beverages in the world, the people of the world run on coffee. However, the process of coffee making from bean to brew, is tumultuous and a cause of mass hardships for the farmers and agricultural workers who grow, pick, and sort coffee. Coffee is grown in over fifty countries of the world, but it’s origins is in Ethiopia. For the past ten years, Ethiopia has been trying to raise the quality of life for its coffee farmers and workers, where it is a source of livelihood for somewhere around 15 million people. Most the people involved with coffee trade in Ethiopia get paid less than two dollars a day for their work and contribution while prices for arabica brewed coffee soar in Europe, America, and parts

The data for the study was obtained from a survey of 119 coffee producers in the state of Oaxaca. The survey related to activities undertaken during the 2013/2014 coffee growing season and was undertaken in August-September, 2014. Field interviews with producers were conducted on a one to one basis using a structured survey questionnaire. In the first stage of the sampling procedure, a municipality - San Agustin Loxicha - was selected (see Figure 1). The municipality itself is located in one of the main coffee growing regions of Oaxaca. Local representatives of the coffee sector in Oaxaca reviewed the questionnaire for clarity and to ensure that questions were relevant to the context of the sampled area. In the second stage, two villages within the municipality were randomly selected as field sites and a pre-test survey was conducted in a third village. Proportionate random sampling was carried out using a database of coffee producers in each village. During field visits, semi structured interviews were also conducted with five producers in order to obtain supplementary information on local issues related to coffee production.