Transcript Coffee Information 2015

To investigate how the coffee industry
has exploited the coffee farmers and to
consider how ideas like Fair Trade can
help them
Commodity- Something mined or
grown that is traded on the world
market.
E.g. Coffee Gold Copper
Cash Crop- A crop grown mainly to
sell to other countries (EXPORT)
E.g. Coffee Tea Cotton
Can you find a pattern between the two maps?
Coffee is grown in LICs.
South of the North South Divide.
In the poor South.
In the tropics,.
Near the equator, where it is warm.
The coffee
Process
http://www.bbc.co.uk/learningzone/clips/life-in-the-rainforest-coffee-cornand-the-environment/4636.html
What’s life like for
coffee farmers?
What has happened to coffee prices? What happened to Nescafe profits
Coffee: The Problem
Pedro Is worried because _______________________________________________
How does this effect his family? _______________________________________________
_________________________________________________________________________
_________________________________________________________________________
At the start of 1998 Coffee was worth ____________ a kilo.
At the end of 2000 Coffee was worth _____________ a kilo.
The price of coffee fell because _____________________________________________
They were told to do this by ___________________________________________________
The coffee growing countries did not make a _________ together, so they
___________________ to ________________ and more ______________.
With so much coffee on the market __________ for big companies could drive the prices
down, so farmers get paid ____________ for their coffee.
Coffee farmers face stiff competition from other
countries, all trying to sell their coffee beans!
Effects on Coffee farmers of the fall in coffee prices
Less money for
food, clean drinking
water, clothes,
housing…
Less Money to pay
for farmers children
to go to school…
Coffee farmer
earns less….
Less Money to
improve a farmers
business…
Less Tax paid by
Farmers…
Money dividing?
The grower
The traders and exporters
A cup of coffee in a
café can cost
£1.75 but where
and whom does
this money go to?
The cafe
The roasters
and producers
The shippers
There are 5 important people in producing coffee
The traders and exporters
The grower
44p
5p
30p
The cafe
£1.75
79p
The roasters and producers
17p
The shippers
How could coffee farmers be
helped?
Destroy some
stocks of coffee
beans
Pay the coffee
farmers a fair
price
TNCs to pay
extra tax on
their profits
and give it to
the farmers
Help coffee
growing
countries to set
up factories
Coffee growing countries should agree
on how much to grow each year
Working in small groups…
Discuss how each solution will work. What is good
and what is bad about each solution?
On your mini white board:
Explain how it works. (Explain level 5)
What are the advantages? (Explore level 6+)
What are the disadvantages? (Explore level 6+)
Describe the
Solution
How does it
work?
(Point L4)
(Explain L5)
What are the
Advantages?
What are the
disadvantages
(Explore and Evaluate L6-7)
Destroy
some of the
poorer
quality
beans.
Supply Vs Demand
Reduces supply.
Coffee is rarer.
Demand remains the
same.
Price will increase.
Only better quality
coffee beans sold.
Price will increase.
Coffee farmers earn
more.
Coffee TNCs will pass on
the cost to consumers.
Price will increase for
consumers. Consumers
have no choice.
Farmers who produced
poorer quality beans earn
nothing.
Describe the
Solution
How does it
work?
(Point L4)
(Explain L5)
What are the
Advantages?
What are the
disadvantages
(Explore and Evaluate L6-7)
Get the
TNCs like
Nestle to pay
extra tax on
their profits
and give the
money to the
coffee
growers.
Tax the TNCs.
Farmer earns more
Pass on the
money to
farmers.
Companies need to
make a profit. Coffee
TNCs will pass on the
cost to consumers. Price
will increase for
consumers. Consumers
have no choice.
TNCs may move to
countries with lower tax.
This could cost jobs…
Describe the
Solution
How does it
work?
(Point L4)
(Explain L5)
What are the
Advantages?
What are the
disadvantages
(Explore and Evaluate L6-7)
LICs growing
coffee should
agree how
much coffee
to grow and
stick to it.
Supply Vs Demand
LICS control the
supply.
Reducing supply
makes coffee is
rarer.
Demand remains the
same.
Price will increase.
Only better quality
coffee beans sold.
Price will increase.
Farmers earn more
Price will increase for
consumers. Consumers
have no choice.
Some countries may not
stick to the plan…
Some farmers will be told to
stop growing coffee. Can
they afford to change their
farms and businesses?
Describe the
Solution
How does it
work?
(Point L4)
(Explain L5)
What are the
Advantages?
What are the
disadvantages
(Explore and Evaluate L6-7)
Help LICs
growing coffee
to set up
factories to
make instant
coffee.
Cash crop/commodity
(Primary Product)
vs
manufactured good
LICs produce a
“manufactured good”
to sell.
The processed
coffee is worth more
than a cash crop…
LICS earn more.
LICs now process the
coffee so jobs could be
lost in processing factories
in HICs.
Describe the
Solution
How does it
work?
(Point L4)
(Explain L5)
What are the
Advantages?
What are the
disadvantages
(Explore and Evaluate L6-7)
Just pay the
coffee
farmers a fair
price.
Pay farmers more to
reflect their effort and
help them improve
their lives.
Farmers earn more
Coffee cost more.
Coffee TNCs will pass
on the cost to
consumers. Price will
increase for
consumers.
Consumers have no
choice.
Price will increase
for consumers.
Consumers have no
choice.
To help the poorer
farmers get a better
price for their
coffee ( and other
products) shops
have now made
available jars of
coffee with the Fair
Trade logo on it.
This ensures that
the farmer received
a fair price for the
coffee he has
produced.
What is fairtrade?
Fairtrade Coffee
Fairtrade in action in Nicaragua
Watch the first Fair trade video in this Learning Zone folder
Fairtrade in Uganda
Watch the second Fair Trade video in this Learning Zone folder.
Why buy Fairtrade?
Video
https://www.youtube.com/watch?v=LE7ikR64F7s