Cooperative Fair Trade Coffee: The U.S. Experience

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Cooperative Fair Trade CoffeeThe U.S. Experience

• Ted Weihe
• U.S. Overseas Cooperative Development Council

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Background

• Equal Exchange (1986)
• TransFair USA (1998) member of FLO
• U.S. is worlds largest importer of coffee
• Fair Trade coffee is 2 of the world market and
  is the fastest growing sector

• For the last 2 years, Fair Trade coffee sales
  have risen by 125
• Farmer cooperatives earn 3-5 times more
• Fair Trade coffee increased income to farmers by
  34 million

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U.S. Cooperatives

• Cooperative Coffee imports green coffee from 10
  countries
• National Cooperative Bank provides capital to
  U.S. cooperatives
• Eco Logic provides loans to small
  environmentally minded farmer cooperatives

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Methodology

• Market Development customer-focused and aware
  of market demands
• Technology Transfer hands on learning of
  meeting market demands

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Nicaragua

• 2,000 families benefit from CLUSAs small farmer
  project
• Farm Direct roasted and packed at origin
• 1999 started producing organic coffee
• 2000 formed Cooperative of Organic Coffee
  Producers of Matagalpa
  
  
  
  
  
  
  
  
  
  
  
  
  
  

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El Salvador

• 16 year history
• Special training in quality harvesting
• Quality Coffee Mini Labs
• Technical Assistance
• Plant Selection
• Transportation
• Collection
• Removing of leaves
• fermentation

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Indonesia

• cooperatives produced and exported 5.3 million
  of specialty coffee
• 27 year history
• Over 600 million worth of goods exported
• Farmers incomes have increased
• 16,000 jobs created

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East Timor

• Coffee industry ruined by Indonesian army in 1999
• Coffee production supports one-fourth of the
  population
• Only independent producer of wet-milled coffee
• Lessons Learned
• Post Conflict Co-ops
• Indigenous Staff Development
• Confidence building
• Capital Formation
• Economic Recovery

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Ethiopia

• Utilize three farming systems
• Forest Coffee, Small Farm, Plantation
• Coffee Farmers Cooperative Union (June 1999)
• Market liaison, warehousing, transport, credit
• Achievements
• In 2000, exported 54 tons worth 120,000
• Credit line increased to 1.2 million USD with
  100 loan repayment
• Distributed dividends totaled 479,203 USD in
  2003, with sales of 0.5 million USD

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Colombia

• Colombia Specialty Coffee Program (since 2002)
• Renovation of Coffee Plantations
• Improvement of Production and Processing
  Infrastructure
• Marketing Promotion and Exports
• FEDERACAFE
• provides technical training to cooperatives

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Mexico

• Mut Vitz Cooperative
• Self-organized, processing for export license,
  and making the switch to organic
• Land O Lakes supported volunteers

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Rwanda

• After the civil war and genocide, Rwanda had
  severe food shortages
• Most densely populated country in Africa and 87
  of population engaged in agriculture
• Food Security Grant Fund
• Awards grants to cooperatives in agribusiness
• ACDI/VOCA prevents soil erosion through
  increasing the viable livelihood
• Fair Trade in Rwanda
• Union Coffee Roasters, EcoLogic, Green Mountain
  and the Gorilla Fund Coffee

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Thank you!

• For more information, please visit our website
• http//www.coopdevelopmentcenter.coop/OCDC/home.ht
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