arya
Member
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# Posted: 20 Oct 2008 23:56
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ETHIOPIA
Scale
About 25% of the population of 65 million depends on the production, distribution or export
of coffee. There are some 1.2 million coffee farming families.
Income
Many people in the coffee sector are now living on less than US$1 per day. Farmers are now
selling coffee at prices well below the cost of production. Since coffee on average constitutes
over 50% of export earnings the government is suffering severe fiscal constraints.
Employment
It is stated that there has been a considerable reduction in employment..- 6 -
Social
Coffee farmers are now unable to pay for their children’s education and for basic medicines.
They have also had to cut back on food consumption, living on one meagre meal a day, with
frequent cases of malnutrition. There has been increased migration to urban centres, swelling
urban unemployment.
Environmental
The environmental impact has been negative with abandonment of coffee farms.
GHANA
Scale
Ghana is a small producer; several hundreds of farmers have coffee as a main source of
income.
Income
Prices received by farmers are more volatile as well as lower since marketing system
liberalization. The producer price share of the fob price has moved from 56.93% in 2000 to
55.70% in 2002. Current prices do not cover production costs.
Social
Coffee represents a cash crop element in subsistence farms; cash shortfalls mean less money
for health and education. Some farms have been abandoned.
Other effects
Several local traders (licensed buying companies) have closed or been rendered ineffective.
There are now 5 active companies out of 50 which are eligible to trade.
INDIA
Scale
There are some 500,000 coffee workers.
Income
Growers find it difficult to cover production costs at present price levels and are reducing
inputs and their work force. The sector is facing a credit burden of loan service said to be
unmanageable, with a consequent unavailability of further loans from the banking sector.
Production is decreasing.
Employment
There have been widespread lay-offs..- 7 -
Social
Poverty levels have increased significantly in the Western and Eastern
Ghats areas.
Environmental
Coffee is mainly grown under shade but growers are now tempted to remove trees and sell
them as timber, leading to deforestation and loss of ecological balance. The Western Ghats
are rated as one of the 14 most sensitive ecological areas in the world.
NICARAGUA
Scale
Agriculture, in which coffee is the main activity, is the principal source of employment.
270,800 jobs exist in the coffee sector. Total population is 5.2 million.
Income
At a national level shortfalls in foreign exchange earnings caused by the coffee crisis are
estimated for 2000/01 – 2002/03 at US$142 million through falls in volume and
US$165 million through falls in price. Losses in income tax collected are estimated at
US$13.2 million.
Employment
Job losses caused by the crisis are estimated at 122,000.
Social
There has been a substantial increase in rural to urban migration, although there is no demand
in the cities for this type of labour. There have been several demonstrations demanding work
in coffee areas.
Other effects
Low prices have discouraged care of coffee trees and limited access to credit.
PAPUA NEW GUINEA
Scale
Papua New Guinea has a population of 4.9 million. It is estimated that just over 50% of
households depend on coffee for all or part of their income.
Income
During the period of the crisis, from 1998 to 2002 PNG’s GDP fell 3.5% in real terms. In the
main smallholder coffee sector the average return per man-day is estimated at US$1..- 8 -
Employment
There has been a 40% decline in formal employment in the estates sector, which accounts for
some 15% of production, between 1998 and 2002. There have also been substantial layoffs
in the research and extension services dealing with coffee.
Social
Many smallholders are experiencing difficulties in paying for medicine, bride price, school
fees, meat and fish, etc. In the Eastern Highlands 50% of parents have not paid their
children’s school fees this year.
Other effects
The Government of PNG has conveyed that the coffee crisis has increased poverty, slowed
down economic growth, curtailed employment prospects and has had a negative impact on
the balance of payments.
PHILIPPINES
Income
With production costs at roughly US$300 per ha. and revenue from coffee per ha. at
US$256 at current prices coffee production is not economic.
Employment
There is stated to be a widespread unemployment problem in coffee areas.
Social
Coffee farmers have become poorer with substandard living conditions. Land owners are
unable to pay taxes and many farms have been abandoned.
Other effects
Quality has suffered from lack of fertilization, improper harvesting and other factors linked to
price levels.
VIETNAM
Scale
Coffee is one of the main economic activities in the Central Highlands, particularly in the
province of Dak Lak, whose population is around 2 million.
Income
When coffee prices were high, as in the mid-1990s, 1kg of coffee could be exchanged for
5kg of rice. This had dropped to 1 for 1 in 2002.
Social
A March 2002 survey showed that 45% of coffee-growing families lack adequate nourishing
food, and 66% have bank debts. Many children from medium to poor households have left
school in view of the costs involved..ANNEX I
TEXT OF ICO LETTER SENT TO REPRESENTATIVES OF COFFEE PRODUCING COUNTRIES
14 July 2003
In my submission to the G-8 Summit in June 2003 I explained that the current
situation of extremely low levels of coffee prices which has lasted now some three years has
led to great social and economic hardship in coffee producing countries.
In order to provide the greatest possible evidence of the effects of the coffee crisis
I am writing to ask you to send me a brief description of the impact of the crisis in your
country particularly with respect to poverty as well as on the development process.
I am sure you are aware that all United Nations’ Members agreed in September 2000
on a series of millennium development goals setting targets for the reduction of poverty and
the improvement of global living standards.
Sadly the evidence I have indicates that the situation of the world coffee market poses
a real impediment to attaining these goals. In consequence I believe that additional support
for action to deal with the coffee crisis could be mobilized if a clear picture could be
presented on its impact on individual producing countries. If you could provide me with an
approximately two page summary of the effects of the coffee crisis related to poverty in your
country it might be very helpful to secure appropriate support for relevant action.
It would be most helpful if you could reply to this request by 15 August 2003.
Yours sincerely,
(signed) Néstor Osorio
Executive Director
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BobbyRZA
Member
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# Posted: 1 Apr 2009 11:09
Reply
Hi Mr. Nestor Osorio,
My name is Robin, from Timor-Leste, I am doing a research about fair trade coffee price for Timorese coffee, I have trouble of finding available data for fair trade coffee prices in any country which can help me conduct my research, which the result will be a policy recommendation to my Government in support of fair trade coffee.
If there is any available link or resources which I can find the data for fair trade coffee prices in producing countries and importing countries, then it is truly grateful.
Thank you and sincerely yours,
Robin J.
Timor-Leste
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kasia
Member
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# Posted: 13 May 2010 22:10
Reply
Hi!
I just wanted to share with you some of the results I came to while working on my thesis in economics of Ethiopia.
i need to share it with you, coz I am completely shocked/broken
From a thourough analisis of offical data on coffee world trade I came to the conclusion, that:
-an avarage price of raw product in the period of 1983-2009 was 65 USD cents per bag (60 kg), which maked 1 USD CENT per kilo
-a comparison of prices in the period of 1983-89 and 2000-2009 showed, that the price rose by 1% nominally (it is: without taking into consideration the rate of inflation, which, by the way, is doubledigit in Ethiopia)
"the best" is yet to come, listen:
-on avarage, between 1983-89 and 2000-2009 retail price of roasted coffee was......717 times higher then the price paid to the farmer
717!!!!!!!!!!!!!!!!!!!!!
In 2009 alone, it was 732 times!!!!!!
No words to describe
Feel free to contact me:
kasia.niziolek@gmail.com
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