Poverty and coffee farmers
About 25 million people and their families depend on
growing coffee. The price of coffee is therefore hugely important for
these people - when it is high they can make a decent living but a low
price can leave many of them undernourished and desperate.
After hitting a 30-year low, the price of coffee has
begun to recover. But the extra money earned from coffee in no way signals
an end to the coffee crisis. Despite higher prices, 25 million coffee-producing
families still cannot rely on a decent income. Oxfam campaigns for farmers
to receive a decent price for their coffee , regardless of the booms and
busts in the international marketplace.
Between
1999 and 2000, the price of coffee fell by 50% to a thirty year low. Taking
inflation into account the 'real' price of coffee is now at just 25% of
its level in 1960. This is probably its lowest real price in 100 years.
Low coffee prices also have long-term and widespread
effects on whole communities and countries where coffee is a major export:
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Children miss out on their education because
parents can't afford school fees.
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Less foreign currency coming into the country
means that the government is less able to pay off foreign debt.
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The country has fewer educated people for administration,
politics, and business.
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Men move to cities to find work, leaving women
and children to work on farms.
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Widespread poverty is a major cause of conflict
and civil war. For example, in Burundi, where the economy is dependent
on coffee for 80% of its income from exports. |
Next: Why
is the price of coffee so low? >>
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