Small coffee farmers from Tanzania discuss benefits of fair trade



									Small coffee farmers from Tanzania discuss benefits of fair trade Representatives from the Kilimanjaro Native Cooperative Union (KNCU), a coffee-growing cooperative in Tanzania, joined UUSC and other faith based organizations at a recent meeting at the Canton, Mass., headquarters of fair trade organization, Equal Exchange. Meeting participants discussed ways to promote and sell fair trade coffee in the United States to benefit small coffee farmers. According to Raymond Kimaro of the Kilimanjaro Native Cooperative Union (KNCU), the outlook for the thousands of small coffee farmers who are members of this cooperative at the base of Mount Kilimanjaro in Tanzania is bleak. Mr. Kimaro was one the guests of honor at the First Annual Interfaith Coffee Project meeting on May 13, 2002, at the Canton, Mass., offices of Equal Exchange. As the world price of coffee has plummeted over the last few years, millions of small coffee farmers around the world who depend on income generated by producing coffee for food, shelter, education and health care have been devastated. By purchasing fair trade coffee through organizations such as Equal Exchange, congregations and individuals can help pay farmers a fair wage for their labor. In desperation, many small coffee farmers at KNCU are trying to decrease their reliance on coffee by searching out alternative sources for income generation; cutting down the coffee bushes to provide more area for grass space for grazing animals, bananas, or other cash crops, Mr. Kimaro said. Fair trade is another important way of increasing the income of small coffee farmers such as the members of KNCU. Organizations such as Equal Exchange help small farmers throughout the world by paying a fair wage when purchasing coffee, tea or other commodities. In 2001, UUSC launched the UUSC Coffee Project in collaboration with Equal Exchange, enabling congregations and individuals to put their values into action by purchasing fair trade coffee. Proceeds from the project directly benefit struggling small farmers. The UUSC Coffee Project Congregations and individuals participating in the UUSC Coffee Project can support small farmers and human rights through their purchase of fair trade coffee and tea. To date, 118 UU congregations have participated, a staggering 11 percent of all UU congregations. They have bought more than 4,000 pounds of fairly traded coffee alone. One congregation, the Atkinson Memorial Church in Oregon City, Ore., passed a board resolution to purchase only fair trade coffee. UUSC and Equal Exchange are proud to be the partners of so many congregations putting their faith into action The benefits of this project to individuals, families and communities are many. The proceeds of the coffee and tea sales go directly to the small farmers in cooperatives such as KNCU at above-market prices. In addition, UUSC also receives a small percentage of the sales proceeds to, in turn, provide grants to human rights initiatives in the coffee-growing regions like Chiapas, Mexico, and Guatemala. In addition, participants are provided with an easy way to promote their values in daily life. Increasing income through fair trade Overall, however, alternative sources of income are few. Gabriel Ulomi, also of KNCU, explains that many older coffee farmers see their coffee plants as their "pension." This income provides for them in their old age, in the absence of any retirement plan or government assistance. As the income derived from the production of coffee continues to go down, their "pension" is worth less and less, providing for little of their basic needs. KNCU tries to help farmers learn improved agriculture techniques, better business skills and helps to negotiate better coffee prices. In addition, a group of women have begun a dairy cooperative under the auspices of the coffee cooperative in the hope of garnering additional income. KNCU is a large and established cooperative which sells about 10 to 15 percent of its produce to the fair trade market in Europe and the U.S. primarily, and which sells the remaining coffee beans to the conventional market with its much lower prices. Last year, KNCU sold 115 containers of 18 tons of coffee, and 16 of these went to the fair trade market worldwide. Under the rules of fair trade, the producers received a minimum of $1.26 per pound of coffee, and a minimum of $1.41 per pound of certified organic coffee for all of the beans they sold to the fair trade market. The difference between that price and the world coffee price, which fluctuates wildly and was down to about 45 cents in March 2002, is called the premium, and it is one of the benefits of selling to the fair trade market. That premium, or the additional payment received above the level of what the coffee would have fetched on the conventional world market, increases the amount of money small farmers receive for their produce. This difference, which seems so small, often makes the difference for individual families who may have to choose between paying a daughter’s school fees or having her stay at home to work. Revenues may be used to finance a project to improve water quality, a school or local health clinic. Equal Exchange, in its partnership with small farmers, made $960,000 in above-market fair trade premiums to small farmer cooperatives in 2001. Gabriel explained to the interfaith participants that the impact of fair trade extends far beyond merely the premiums that the cooperative receives. According to Mr. Ulomi, "The multiplied effects to the community are high though the volume [of fair trade sales] is low." He explained that all the KNCU coffee is sold at an auction, and because some of it fetches the higher, fair trade price, the price for the rest of the cooperative’s coffee increases when purchased by the conventional market at the auction. Through fair trade, KNCU also gets the opportunity to penetrate other markets without the high marketing costs that would normally entail. For example, through its partnership with Equal Exchange, KNCU was able to enter the U.S. market. Through their partnership with Equal Exchange, KNCU also has access to pre-harvest credit. This is vital to avoiding the debt cycle in which so many small coffee farmers fall because their money for basics runs out prior to harvest, forcing them to borrow at high rates and essentially mortgage their land. Click here to view and print a UUSC Coffee Project factsheet. Click here to link to Equal Exchange’s web site for the UUSC Coffee Project, with links to information on Equal Exchange, small farmer cooperatives such as KNCU, fair trade, other interfaith partners, ordering information and more: http://www.equalexchange.com/interfaith/uuscproject.html Click here to download and print an order forms for the UUSC Coffee Project: Coffee order form \| Chocolate order form Click here to order fair trade coffee and tea on-line for your UU congregation: http://store.yahoo.com/equalexchange/ Last updated on 5/30/02