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Ethical coffee trading
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We believe that coffee farmers should be able to make a decent living from growing coffee and that their workers should be treated fairly, but we do not believe that the Fairtrade system is the only or the best way to achieve this.
Large coffee companies base the price they pay for coffee on the C price, ie the price on the stock market which fluctuates daily. Because of these price fluctuations it is difficult for farmers to plan and know how much they will receive when the harvest comes.
Fairtrade guarantees farmers a price irrespective of the quality of what they produce. This policy can lead to overproduction which further lowers the stock market price, making things difficult for small farmers who are not part of the Fairtrade system and cannot afford to be.
We think that a fair price should be negotiated for a coffee which reflects its quality and the needs of the producer. This price should be paid for the entire year’s crop and not fluctuate, based on the market price.
High quality coffees are grown using varietals that taste better but yield less. Only fully ripe, defect-free beans are processed, improving quality and taste -- lowering yields and raising prices for the individual farmer in reward for his effort.
During the 1990s, coffee prices were very low because of a glut of
coffee caused by overproduction, sending the stock
market price down. Current coffee prices are at record highs. This is partly because people in coffee-producing countries like Brazil and India are consuming more of their own coffee which has decreased the coffee available on the international market and thereby increased demand. Some larger producers have had bad harvests recently and there has been a lot of speculation in the coffee market which also raises the price. |
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