Fair Trade Coffee [by: Melody Liu]

Posted: 19th March 2010 by globalthreads in Global Thread Descriptions
Coffee is something that most of us can't start the day without, but we
rarely think about what it costs for the cup of freshness to come to us.
Consumers pay top prices for their Mochas thinking that it must be great
to be in the coffee industry. That is partially true, but not for all
participants in the long supply chain.

According to the International Coffee Organization, coffee prices have
reached the lowest recorded for the last 100 years. Countries like
Burundi, Ethiopia, and Uganda rely mainly on coffee exports and therefore
a little decline in prices can result in an economic crisis for them.
Poverty has been increasing in these countries and farmers are abandoning
their land or growing alternative crops.

On the other hand, companies like Starbucks, Kraft and Nestle are making
huge profits. These companies can find a better approach to also benefit
their suppliers. To promote fair trade and lower the production costs for
farmers, the global coffee chain can help the farmers by educating them
how to produce better quality crops, providing technical support, and
investing in infrastructures and community development program.

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