The Coffee Cup

Posts Tagged ‘Farmers.’

Agriculture has always been on the open ground which is growing due to the heat from the sun. While this has been the practice for years, this does not apply to all crops. This is because the espresso tastes better when it is grown in the shade.

Studies have shown that coffee beans are exposed to the sun leaves a bitter taste compared to those grown in the shade. It also blends well with other ingredients used to make other good drinks lattes and cappuccinos.

Those who decide to produce espresso coffee will be able to make a fortune, since no time will be devoted to clear the ground. It is also ecologically sound especially when many health experts encourage farmers to shift to organic farming.

Organic farming is the process by which no pesticides or fertilizer used to make the crops grow. Although it has vegetables and other plants larger, contains carcinogenic substances, which are harmful to the body, and has therefore been prohibited for import into the United States.

The only thing the farmer will do is plant the seeds and then ensure that sufficient water available for crops to grow. Surprisingly the pests that people once feared to be detrimental to the growth of the plants do the opposite, which helps each bean has its rich and mellow flavor that coffee lovers will surely love.

There are not many farms that produce it, because there is still a big demand for them has grown in the sun. But those who have a small piece of property can get into it because the industry is regulated makes it a win-win situation for buyers and sellers who will eventually pack it and send it to the U.S..

This idea has led some villages in South America to join cooperatives so that everyone can get a fair share of the market. In fact, farmers are encouraged to help others up.

Growing beans in the shade is a change for those who have always basked in the sun. It is also possible that other types can also be used with this method or reduce the use of pesticides and fertilizers.

It should be remembered that organic farming is healthier and will eventually be the trend because this is a safe choice.

Every day in the early morning, farmers in the Oromia region head out to the coffee plantations in the Ethiopian highlands for a day’s work. Often barefoot for miles to come, the farmers using their bare hands to pick coffee beans out of the steep mountains at high altitudes and a blazing sun. For these farmers and their families, coffee farming, the only way to provide for themselves one of the poorest countries in the world. They earn less than a dollar a day.

Halfway across the world, sleepy office workers line up at Starbucks on 14 St. in New York City, ready to pay three dollars for his first snatch of caffeine. Starbucks, with more than 11 000 stores worldwide and annual earnings of over $ 7 billion, the much of its coffee from countries such as Ethiopia.

Since its inception in 1985, the company has promoted fair trade as part of the company’s image. Starbucks has courted their politically correct customers with ‘fair trade’ Ethiopian coffee in lovely cut out the packaging. But the relationship between the company and the farmers are more complicated than it seems. Recently there has been a growing controversy over whether the Ethiopian farmers and the Ethiopian economy has a fair treatment from the multinational. This debate has started a passionate campaign by fair trade organizations, trade unions and the Ethiopian government, which is publicly questioned the ethics of the company.

Doing business responsibly

Starbucks maintains that it has a positive relationship with coffee growers. With their “commitment to social responsibility, Starbucks has developed an integrated approach to coffee purchasing with Café (Coffee and Farmer Equity Practices), a set of socially responsible coffee buying guidelines. This sustainable approach is said to improve working conditions for farmers, helping them earn more while protecting the environment.

Starbuck agrees to pay higher prices for all their coffee and try to buy coffee that is certified as Fair Trade Coffee. “Starbucks global purchases of Fair Trade certified coffee was 11. 5 million pounds in fiscal year 2005, making it the largest purchaser of Fair Trade Certified coffee in North America,” the company indicated in a leaflet. “In addition to paying higher prices for all our coffee, our investment in social development and access to cheap loans in the coffee growing regions recognized his leadership in the industry,” Starbucks said in a press statement in October 2006.

Trademark Block

But Ethiopian farmers believe they are receiving the short end of the stick in this relationship. While Starbucks continues to generate billions of dollars each year, Ethiopian farmers and their supporters believe that Starbucks does not want to see them or their country, reap similar gains.
Oxfam International, a British human rights organization, claims that Starbucks tried to block the Ethiopian government’s attempt to trademark the names of the coffee grown in Harar, Sidamo and Yirgacheffe regions, deny impoverished country potential revenues of up to $ 80 million. U.S. National Coffee Association (NCA) tried to block the efforts of brand and Oxfam accused Starbucks of being behind these efforts. Although Starbucks denies this allegation, “said Oxfam spokeswoman Jo Leadbetter is the validity of their claim. “We have heard from a number of sources that actually Starbucks was involved in alerting the U.S. coffee association to block these applications and that it” stinks of corporate bullying “,” Leadbetter said.

According to Oxfam, for every cup of coffee sold at Starbucks, farmers in Ethiopia just beginning approximately $. 2003, showed a very small percentage of the profits generated from their coffee consumers. “Ethiopian coffee farmers often collect about 10 percent of the profits from these coffee. The rest goes to the coffee industry players that can control the price, the international importers, distributors and roasters such as Starbucks,” Oxfam said on Make Trade Fair website. In response, Oxfam launched a fair trade campaign to help the farmers in the Ethiopian highlands. “Starbucks has introduced some positive first steps in helping coffee farmers living in poverty. I do not understand why they will not take the next step and come to the negotiating table to discuss Ethiopia’s proposal in good faith,” said Seth Petchers, Oxfam America’s coffee program manager .

Ethiopian coffee industry

Ethiopia, known as the birthplace of Arabica coffee from the coffee region depends on the production of coffee for its economy. Coffee production is so important for agriculture-based Ethiopian economy to 50-60% of its export earnings come from coffee. The industry employs one out of four people. An estimated 15 million coffee farmers and their families depend on coffee for their survival.

Coffee is also a central part of Ethiopian culture, with traditions dating back to the 10th century, when the first tree was domesticated in the southwestern highlands of the country. Coffee is so important to the daily routine of life in Ethiopia to “coffee ceremonies” going on daily throughout the country. One-third of national production is consumed domestically.

Starbucks’ potential impact on the Ethiopian market

If Ethiopia success in trade marking its beans, it will enable the country to control the use of their beans on the market, giving its farmers a greater share of the retail price. “Safe brand for its Sidamo, Harar and Yirgacheffe coffee beans could have allowed the country to increase their bargaining power through control of the name, and ultimately (derive) a greater share of the retail price in the global market,” Ethiopia’s Foreign Ministry said in a statement .

The potential benefits to the Ethiopian market is huge, according Fitsum Hailu, second secretary for trade investment at the Ethiopian embassy. “When producers can grow and flourish by not only improve production and quality but also by building up the value of their intellectual property portfolios, when all of the coffee industry – including partners in retail and distribution, and consumers – have benefits.” Fitsum adds to the a case such as Ethiopia, “Stronger negotiating position would make millions of coffee farmers and traders to prosper and invest in the future for these fine coffees.”

Ethiopia’s position

Tadesse Meskela, representative of the Oromia coffee farmers cooperative union in Ethiopia, agrees Fitsum. According Meskela selling Starbucks coffee for $ 14. 00 per pound, but only pay $ 1. 20 per pound, which does not even cover production costs.

However, Mr. Meskela explained that coffee growers are also concerned with the WTO, not only with Starbucks. In a telephone interview, he said, “WTO controls a huge amount of trading profits and a change must be made in the international trade laws. The price we [farmers] may be very low and it is lower because of unfair trade laws.”

Meskela working hard to save his 74 000 poor coffee farmers, and he is on a mission to find buyers willing to pay a fair price for their coffee. Meskela is also the main character of Black Gold, a documentary that draws together the experience of coffee growers to the consumers who purchase the product on the other side of the world. “This film shows how vulnerable coffee farmers and disconnect that exists between poor farmers and huge profits. Oxfam seeks to correct the imbalances of power based on unfair trade,” said Petchers.

Starbucks’ Position

In response to the Oxfam campaign, Starbucks launched a counterattack. “We’ve never submitted an opposition to the Ethiopian government trademark application, nor claimed ownership to any regional names used to describe the origins of our coffee,” the company said. Dub Hay, Starbucks senior vice president of Coffee and Global Procurement BBC radio, “We have not been involved in trying to block Ethiopia’s attempts. We did not get the NCA involved, in fact it was the opposite. It was they who contacted us about this. “

Although Starbucks denies being behind the brand is blocking the process, it did not believe that trade marking is in the best interests of farmers and the Ethiopian economy. “Every brand has to be implemented – roasters might shy away from buying coffee for fear of becoming embroiled in complex legal disputes. Or worse, they can buy coffee and just market them without the trademarked name. Let the high quality beans go to market without a geographical mapping would completely undermine the value of the trademark “Starbucks said in a statement.

The Ethiopian government also asked Starbucks to sign an agreement that would allow Ethiopian ownership of the coffee. Starbucks, however, refused to sign such an agreement, because the company believes that if Ethiopia would brand their products, it would exclude itself from the market. According Hailu, this is grossly offensive. “The only way this statement could be accurate is if Ethiopia completely neglects the brands when they are acquired, and I hope that Starbucks does not assume that Ethiopia can not manage the intangible assets related to one of its major exports,” Hailu said.
As an alternative to trademarking the goods will Starbucks development of the geographic certification programs. The certification program, a country identified as a product’s origin. Starbucks says that these systems are more effective than registering trademarks for geographically specific names, such as the regional name of the Ethiopian government’s attempts to brand. The mark is the manufacturer of a product or product, while the certification indicates that the product meets quality product standards. Alain Poncelet, Starbucks’ manager of green coffee Buying told Spiegel Online, the German online magazine that his company “is all for Ethiopia” protecting its regional names, “not just by brand. “

This position is not much pressure, however. The company received over 70 000 telephone calls and faxes from concerned consumers show support for farmers. But such negative publicity has had no impact on the household names and billion dollar companies? “Probably not, says a Starbucks employee in New York City who spoke on condition of anonymity.” People are so hooked on coffee that they will not be affected by something that happens so far away. The only people protesting Starbucks is a minority of activists. All other people think only about their own problems. “The staff also talked a lot about Starbucks treat their employees.” They treat their employees better than most business enterprises and they give a lot back to the community, “he said.

Power positioning

As pointed out Meskela, not fight between coffee growers and Starbucks not only on the issue of trademark rights. It also highlights how coffee farmers are almost entirely omitted from the trade industry between governments and businesses. The issue deals with the fact that farmers in “developing” countries do not have much bargaining power in international trade.

Senait Assefa, living in New York from Ethiopia, believe that a better situation for coffee growers in the international market should be the focus of the effort, not Starbucks. “The coffee producers should band together to control the supply of coffee on the international market, so that the very dictate their own terms (like the oil-producing countries manipulate the price of oil by reducing or increasing the production and supply),” said Assefa. Assefa, however, recognizes that this can not work. “Although oil is a resource just a few countries are endowed with, nearly everyone can cultivate coffee,” she added.

Although coffee is a crop that can grow in different regions, the high quality of Ethiopian coffee is what makes it so unique. As Ethiopian farmers will continue to work hard to produce as fine quality coffee, is their position in the international trade market is beginning just to get attention all over the world, thanks to tireless work Meskela and others. Although the fight to trademark its coffee continues, coffee farmers are also left to struggle with the commercial law that makes them invisible in the chain of international players.

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