| International
Coffee Market |
| Don't deny
it, coffee is a luxury. We don't need it to survive. So, why is it
that millions of small coffee farmers all over the world do need it? |
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Coffee
is the second most exported product in the world, after oil.
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It shouldn't come as
a surprise then that when prices began to fall in 1998 as a result
of international overproduction, hundreds of thousands of coffee
producers faced a serious financial crisis.
The overproduction was
a result of the massive campaign by the World Bank and the International
Monetary Fund during the 90s that pressured countries in the southeast
to increase their coffee production as a strategy to cancel their
international debt.
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Vietnam
is the most famous example. While in 1989, Vietnam was country of
little importance in the world of coffee exporting, only 12 years
later, thanks to the World Bank, it became the second largest exporter,
after Brazil.
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In 2001,
2.5 million sacks 60 Kg each were imported at a world level. This
same year, for the high production of coffee, producing an overproduction
of near 10 million sacks, the international price fell to less than
US$0.50 per pound, the lowest price in 50 years.
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For the
majority of campesinos, this means even less due to the fact that
between the producer and the exporter there can be as many as 7
intermediaries through whose hands the coffee passes.
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While the
campesinos earn less and less, Nestle, Philip
Morris, Proctor & Gamble y Sara Lee, who control 60% of the
American market and 40% of world sales, continue to register record
profits.
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Despite
the falling prices paid to the small producers and the many corners
cut by intermediaries and big corporations, that drastically reduces
coffee quality, the prices paid by consumers continues to rise.
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