Coffee Aid and Trade

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The Issue

Coffee farming is the world’s largest employer with 25 million farmers, almost all of them in the Third World. Coffee is also the single biggest source of income and foreign exchange for most of the nations of Africa, and a major source in many others.  When the coffee industry suffers, as happened a decade ago after foreign aid by the World Bank and other international agencies drove down prices for farmers, entire economies will suffer, and especially those millions of farmers and others in the Third World whose livelihoods depend on this crop.

The environment also suffers from the coffee trade, the world’s largest export after oil, because of pressure on farmers to abandon their traditional, niche coffee crops in favor of mass-market commodity crops purveyed by multinationals such as Kraft, Nestle, and Starbucks. International NGOs may also incentivize farmers to abandon their traditional practices by conforming to certain certifications, such as fair trade certification. Through such commodifications of coffee can come loss of genetic diversity, loss of traditional farming practices, loss of community, and loss of sustainability.

Probe International works to right the economic and environmental wrongs in the world coffee trade by reforming aid and trade policies that affect coffee, and by helping to create high-value markets for niche beans through our non-profit Green Beanery company.

Visit Green Beanery, our online coffee store that specializes in local, niche varieties of coffee beans.

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News and Analysis

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Fair Prices for Farmers: Simple Idea, Complex Reality

Jennifer Alserver
03/19/2006

Despite good intentions, most consumers who shop according to their social convictions don't know how much of their money makes it to the people they hope to help. Critics say too many fair trade dollars wind up in the pockets of retailers and middlemen, including nonprofit organizations.  read more »

A coffee a day

Lawrence Solomon
09/04/2004

When coffee first came to Europe from Constantinople in 1615, Viennese priests warned it was "the drink of infidels." The warnings in recent times have come from scientists, pseudo-scientists, and governments.  read more »

Boycott Burundi

Lawrence Solomon
05/08/2004

The fair trade movement – designed to give Third World farmers a living wage while also protecting the environment – started with the best of intentions; it is now paving the road to hell. Although it purports to be a consumer-driven movement that promotes trade over aid, it is funded by government foreign aid agencies and trade unions bent on keeping Third World goods out of Western markets. Although it claims to have the small farmers' interest at heart, it acts as a gatekeeper that excludes small farmers from the fair trade club to ensure the movement's own self-preservation.  read more »

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Library

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Vietnam and the world coffee crisis: Local coffee riots in a global context

Gerard Greenfield
03/01/2004

A look at the global coffee crisis and what caused it.  read more »

Coffee markets, new paradigms in global supply and demand

Bryan Lewin, Daniele Giovannucci and Panos Varangis
03/01/2004

A report from the World Bank on the global coffee crisis and the effect it is having on the developing world.  read more »

The Global Coffee Trade

Stanford Graduate School of Business
02/19/2004

When you buy your daily cappuccino, the farmer who grew the coffee beans receives less than one percent of what you pay for it. About 6 percent of the price you pay for coffee in the supermarket goes to the farmer.  read more »

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