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Cooperative Fair Trade Coffee: The U.S. Experience

Cooperative Fair Trade Coffee: The U.S. Experience. Ted Weihe U.S. Overseas Cooperative Development Council. Equal Exchange (1986) TransFair USA (1998) – member of FLO U.S. is world’s largest importer of coffee Fair Trade coffee is 2% of the world market and is the fastest growing sector.

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Cooperative Fair Trade Coffee: The U.S. Experience

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  1. Cooperative Fair Trade Coffee:The U.S. Experience Ted Weihe U.S. Overseas Cooperative Development Council

  2. Equal Exchange (1986) TransFair USA (1998) – member of FLO U.S. is world’s 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 Background

  3. 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

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

  5. Nicaragua • 2,000 families benefit from CLUSA’s small farmer project • “Farm Direct” – roasted and packed at origin • 1999 started producing organic coffee • 2000 formed Cooperative of Organic Coffee Producers of Matagalpa

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

  7. Indonesia • cooperatives produced and exported $5.3 million of specialty coffee • 27 year history: • Over $600 million worth of goods exported • Farmer’s incomes have increased • 16,000 jobs created

  8. 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

  9. 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

  10. 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

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

  12. 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

  13. Thank you! For more information, please visit our website: http://www.coopdevelopmentcenter.coop/OCDC/home.htm

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