STiR coffee and tea magazine

8 STiR coffee and tea / Issue 6, 2018 (December / January 2019) Founding Editor Glenn Anthony John gaj@octobermultimedia.com Managing Editor Dan Bolton dwb@octobermultimedia.com Art Director Somjet Thitasomboon snt@octobermultimedia.com Global Tea Report Peter GW Keen Global Coffee Report Dan Shryock Special Correspondent Sherri Johns Contributing Writers Josh Doyle (Canada) Bethany Haye (Colombia) Alf Kramer (Europe) Sunalini Menon (India) Shem Omanga Oirere (Africa) Kelly Stein (Brazil) Translations (Chinese) Si Chen | Nan Cui Administrative Assistant Sommai Jekaram Subscriptions Malisa Kongkatitum Sales Director Emerson Leonard edl@octobermultimedia.com Director, October Inter Co., Ltd. Boonthin Tubsongkroh brt@octobermultimedia.com STiR c/o October Inter Co. Ltd. Interchange 21 Bldg., 32nd Fl., Room 3225, 399 Sukhumvit Road, North Klong Toey, Wattana, Bangkok, 10110, Thailand Tel +66 2 660 3789 Fax +66 2 660 3881 www.stir-tea-coffee.com Published by: A Member of: T From the Managing Editor © 2018 October Multimedia Co. Ltd., STiR coffee and tea is published bi-monthly in February, April, June, August, October, and December by October Multimedia Co. Ltd. Printing and distribution overseen by October Inter Co., Ltd., Interchange 21 Bldg. Fl 32, Rm 3225, 399 Sukhumvit Road, North Klong Toey, Wattana, Bangkok, 10110 THAILAND. Tel +66 2 660 3789. E-mail: info@octo- bermultimedia.com www.octobermultimedia.com. All rights reserved. By-lined or initialed articles represent the opinion of the author. All articles published in STiR coffee and tea or www.stir-tea- coffee.com are copyrighted. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without written permission. Sharing the Wealth he most compelling argument against tariffs and other costly barriers to trade is that they signifi- cantly increase the wholesale and retail cost of coffee and tea at a crucial time as producers are unable to recover their most basic costs of production. This is compounded by the fact that supply is currently outpacing demand in both coffee and tea. Coffee farmers are suffering from a crisis 30 years in the making. Since 1990 coffee farmgate prices have not kept pace with production costs to the point where producers are now pleading with company executives to act in concert to reduce profit margins at critical links in the supply chain. In an open letter addressed to coffee executives, representatives of the World Coffee Producers Forum in October declared "The current situation in the coffee market is generating deep economic, social, and potentially political crisis and unrest amongst coffee producers all over the world." "The livelihood of more than 25 million families is at stake, many of whom are facing a pauperization process that is taking them to a situation of misery, that is nothing short of inhumane," reads the letter, which was signed by the leaders of coffee organizations in Brazil, Colombia, and Africa, along with the India Coffee Trust and Promecafe (representing Mexico, the Caribbean, Central and South American growers). The letter states there is more at stake than poverty, human suffering, social unrest, and desper- ate immigration. There is also the "risk of abandoning coffee farms and constriction in supply, which is disadvantageous to the final consumer." This is a truly desperate situation that calls for a very serious discussion and joint action between the industry and producers to find ways to guarantee the economic stability of coffee growers. Two responses stand out. Starbucks pledged $20 million in temporary relief paid directly to coffee growers in financial jeopardy among the company's network of suppliers in Nicaragua, Guatemala, Mexico, and El Salvador. In addition, Starbucks made available $50 million in low-interest loans and donated two million seeds to Puerto Rico where 80% of the country's coffee trees were destroyed by Hurricane Maria. Michelle Burns, s.v.p. global coffee and tea, said that Starbucks, which employs 240,000 globally, has "a role and responsibility in helping smallholder farmers sustain their livelihoods." Co-founders Amber and Craig Hall at Equator Coffee Roasters, a Canadian company that employs 40 agree. "While we can't force corporate coffee conglomerates and other roasters from exploiting farm- ers in developing countries with unfair prices, we are adamant that our farmers and their workers benefit from growing fair trade organic coffee of the highest quality," says Craig Hall. Equator, founded in 1998, pays double the current global market price for ethically sourced coffee beans. "It sounds like a ridiculous business model at first glance," says Craig. "The reason we pay more is that today's coffee prices have plummeted below the cost of production for small-scale farmers. We believe these people deserve a sustainable livelihood," he said. Bucking the status quo on coffee prices in favor of the livelihoods of farmer families in developing countries like the Democratic Republic of the Congo, Nicaragua, and Honduras is being embraced by a committed customer community, according to Craig, thanks to a sustained social media and sales education program with wholesalers, grocers, and cafes. In their letter a delegation of leaders representing eight coffee associations offered to meet with the top executives of the largest coffee companies to personally explore avenues of cooperation. They should also drop by Ottawa, Ontario for a chat over coffee with Craig and Amber.

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