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coffee facts
Coffee Crisis, What Coffee Crisis?
In developed countries coffee is generally seen as a successful and lucrative market, new coffee shops and cafés pop up throughout the coffee-consuming world as the market becomes more focused and consumers more sophisticated. But in developing nations, where the majority of the coffee is cultivated, a very different story has unfolded.
In the early 1990s earnings associated with the annual coffee harvest in coffee-producing countries were around US$10-12 billion and the value of retail sales of coffee (largely in industrialized countries) were about US$30 billion. As of 2004, retail sales had grown to US$80 billion while coffee-producing countries only received US$5.5 billion from the harvest.
According to the World Bank, after adjusting prices for inflation, coffee farmers earn less today than their ancestors did 100 years ago. The effect of these prices is compounded by the fact that the majority of coffee farmers are completely dependent on the once-a-year harvest as their sole source of income.
As Brazil, Vietnam and other countries became more active in the world coffee market, international supply began to outpace demand. In 2001/02, total coffee production was estimated at 113 million bags (60kg bags), while consumption totaled just over 106 million bags.
As prices paid for green coffee decreased due to the surplus, farmers were forced to react the only way they knew how; they produced more coffee to make up for lost income, the surplus continued to grow and prices continued to decrease.
Fair trade and other premiums have helped establish better prices for small farmers and provided roasters, retailers and consumers with the opportunity to pay a fairer price for coffee, but these premiums do not address the root cause of poverty in coffee-farming countries: the singular reliance on coffee for income.
To break the cycle, farmers and their families need alternative income to supplement the annual harvest; communities need diverse local economies to ensure vibrant local trade. The long-term health and success of the coffee trade is directly related to the quality of life in coffee-farming communities.
_*Statistics based on data collected by the International Coffee Organization_
Coffee Facts
- Coffee is the most traded agricultural commodity in the world. As of 2004, the value of retail coffee sales totaled about $80 billion.
- Coffee farmers earn as little as 4 cents per pound for coffee they pick by hand.
- 25 million families around the world work in the coffee fields and are completely dependent upon coffee as their only source of income.
- One coffee bush yields slightly less than one pound of coffee per year.
- For every pound of gourmet coffee sold, a coffee farmer may receive between 12 and 25 cents.
The coffee process from bush to cup
People play a role in every step that coffee takes on its journey from the coffee bush to your cup. Coffee Kids work is grounded in a deep respect for this work, the values, cultures and the rights of the people at the base of the coffee industry.
Coffee grows as a fleshy, red berry that must be picked by hand. The berries mature at different rates. As a result, mechanized harvesting is nearly impossible.
During the coffee harvest, many workers migrate to large coffee plantations looking for work. Occasionally, families are forced to pull their children out of school to help in the harvest so the family can earn enough to survive.
Coffee farmers earn as little as 4 cents per pound of coffee.
Once the berries are harvested the skins and pulp are removed in a water-intensive process that often leaves local water tables contaminated.
The de-pulped beans are left to dry in the sun for around five days depending on the climate. The dried beans, also known as parchment or ‘pergamino’ in Spanish, are then bagged for transportation, milling and sorting.
Frequently, specialty coffee is sorted by hand and lower quality beans are separated out. It takes approximately 52 beans to produce one cup of espresso. One substandard bean can ruin the quality of an entire cup. Workers receive about $2 a day for sorting coffee beans.
Once sorted, the “green coffee” is ready for sale to coffee roasters around the world. Green coffee can be stored for up to a year before being roasted. Once roasted, coffee is best used within days.
Links
To learn more about the coffee industry and life in coffee-producing countries, please visit these links.
Trade Groups
Songbird Foundation – A group promoting sustainable coffee production in harmony with the environment.
Specialty Coffee Association of America (SCAA)
TransFair Canada – The certifying body for fair trade products ensuring that farmers receive a living wage for their products.
TransFair USA
Facts and Statistics
International Coffee Organization (ICO)
The International Fund for Agricultural Development (IFAD)
The World Bank – Key Statistics and Facts
Behind Every Cup – “Behind Every Cup” is a photo essay on life in coffee-farming communities by Dorie Hagler.
Other Non-Profits
Café Feminino Foundation – A market-based solution providing options and support for female coffee growers in Peru.
Cup for Education – Helps poor rural communities in Central and Latin America build schools and provides teachers and students with education resources.
EcoLogic Development Fund – Empowers local, indigenous communities in Latin America to strengthen their communities and protect the natural environment by providing training, tools and financial resources.
Grounds for Health – An international non-profit that provides health care services to coffee-growing communities in Mexico and Central America.
Oxfam – A confederation of 13 organizations working together with over 3,000 partners in more than 100 countries to find lasting solutions to poverty and injustice.
Root Capital – Provides credit, financial education and market access to environmentally sustainable, grassroots enterprises that transform the lives of rural producer communities.