Mexican Coffee Farmers...End the cycle of poverty

Mexican coffee farmers are the number one suppliers of coffee to the U.S., the world's top coffee consumers. Coffee is the second largest traded commodity in the world, only behind petroleum. So why are the vast majority of Mexico's coffee farmers living in desperate poverty?
Mexican coffee farmers
have a long history in Mexico, dating back to colonial times, where serfs planted and harvested coffee on feudal estates. Unfortunately, conditions have not improved since thosehumble beginnings. The coffee industry became what it is today during Porfirio Diaz's dictatorship between 1876-1911. Recognizing coffee's enormous economic potential, he transformed the industry by handing out huge financial incentives and assistance to international businesses allowing them to set up large plantations. These plantations, up to 1200 acres, are owned four big conglomerates who produce most of the world's coffee. Mexico's main coffee producing area is the state of Chiapas. Consequently, this is also Mexico's poorest state. Most of the small farmers were moved off the most fertile land, in favor of the large coffee plantations owned by foreign investors. Small farmers, who still comprise most of the coffee growing population, cannot compete since they are not set up with the credit, processing equipment and access to a stable market. Since the world market price hovers around 50 cents per pound, they cannot even cover their farming expenses.Those who have decided to stay, can only access financing through companies who take advantage of the desperate conditions, exploiting them with exhorbitant rates. The biggest cuts of the profit from coffee production go to the large corporations who roast, package, and market most of the world's top selling coffees. These companies are Nestle, Proctor and Gamble, Philip Morris and Sara Lee. These coffees are marketed as Hills Brothers,Folgers, Maxwell House and Eupopean Brands.
The next biggest cut goes to the retailers, the exporters, then the "coyotes" who are the people who buy directly from the farmers. The coyotes look for ways to cheat farmers by telling them their coffee is of poor quality when it is not. In the end, the poor small coffee farmers see anywhere between 28 to 41 cents per pound, and the price for production averages about $1.00 per pound. Unlike most of the coffee producing world, most Mexican coffee farmers are still smallholders who feel trapped due to a lack of other work. In rural areas, as much as 25% of the population make their livelihood in the coffee industry, and about 65% of those are indigenous people. Mexican coffee farmers are switching to cattle farming or growing corn, burning precious forest to clear land and posing serious environmental threats and cultural disruption.
In the early 1980s, in response to growing consumer awareness, Mexican coffee farmers started forming co-ops, sharing resources, in order to process the beans, market and export them. On the other side, there was a movement slowly beginning to take shape, what we now call fair trade. Fair trade not only guarantees a livable wage, but encompasses a wide range of principles to better the life of the farmer. As part of the fair trade certification process, Mexican coffee farmers must put money back into the community by investing fair trade premiums in social and business development projects like scholarship programs, quality improvement training, and organic farming. Harmful chemicals and GMOs are strictly prohibited in favor of sustainable farming methods. Fair trade certification also brings with it safe working conditions, elimination of the middleman, or coyotes and importers, and child labor is strictly prohibited. The Fair Trade minimum price for coffee is $1.26 per pound. The new fair trade organic coffee price is now $1.51 per pound, up this year from $1.41 per pound, adding extra incentives to go organic.
As coffee drinkers, we can make the decision to buy Fair Trade Certified coffee or not. We can reject the "big four" who have a sad track record and a lack of conscience when it comes to trading practices. We can support human rights and environmental sustainability. It's your choice.
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