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“Fair” Trade Coffee
Prospects for “Equitable” Green Economy
Ken-ichi ABE
Research Institute for Humanity and Nature (RIHN), Kyoto, Japan
・Brought by Dutch colonists
・Commonly cultivated
・90% of regional income come from coffee
・More than ¼ of family entirely dependent on
coffee production
・Small cultivators buy staple foods and
necessaries from coffee revenues only
Coffee Cultivation in East Timor
・ Mountainous topography
→ limited agricultural land
・ Strongly seasonal climate
→ limited planting season
・ Soil derived from limestone
→ chemically rich but
physically difficult to cultivate
far away from self-sufficiency of food
Agricultural Context in East Timor
Arabica variety—prized
Traditional cultivation
- shade grown
plant shade tree, then coffee seedling
- no agricultural chemicals, no fertilizer
- no pruning, no weeding
(not “cultivator,” but “harvester”)
Environment Conserving ← Creating Forest
- bird friendly - forest compatible
Coffee production in East Timor
A favored coffee producing environment…
Low yields
Poor quality (Potentially high quality)
Poor harvest & post-harvest techniques:
・ harvesting unripe cherries
・ leaving cherries un-peeled after harvest
・ improper drying
・ no selection for quality
Purchase price remained low
But……..
Is it difficult to improve quality of their coffee?
No, not at all
it is simple
・ harvesting only red ripe cherries
・ peel cherries at the end of day-harvest
・ proper drying
just do not left beans too long in sunshine
・ do selection for quality
Is it difficult to improve quality of their coffee?
No, not at all
Why are coffee growing communities rarely
interested in improving quality?
・Little access to knowledge/methods for
improving quality and adding value
・They are cut off from outside market:
one agent/buyer, with fixed price
・Local price does not reflect real market price,
so weak incentive to improve quality
Investment of the outside resource to exploit the full
potential of coffee
(1)Putting local farmers/producer in global context
Research: NGO and University
(2) Improving agro-ecological, harvesting, and processing
techniques
Coffee company: PT. Toarco tradja (Indonesia)
(3) Empowering producer by promoting consumer/public
to select “green” products
To improve cultivator’s status within commodity chain
(involvement in adding-value)
Project to improve
Existing coffee company has shown no interest
→ too little quantity
starting cost is too high.
It can be a “green economy”
It is difficult to double yield, but easy, by proper harvest and
post-harvest processes, to double purchase price.
(17cents/kg in 2002 → 1 dollar 50cents/kg in 2013)
Can it be realized as business?
Green economy?
Quality
product
Quality
environment
Economic
viability
Production
Emphasizing environmental conservation,
coffee quality, to add value in the
international market.
Consumption
Inspire consumers to know how and by whom
the commodities they consume are produced
Fair trade: Links between
production and consumption
Child Labor → Family work
Improved quality of connection:
Overcome “Not In My Backyard” sentiments
Overcome dichotomy of Producer/Consumer
→ Producer/Co-producer
Significance of linkages beyond marketplace
Inspire consumers to know how and by whom the commodities
they consume are produced
Encourage producers how and by whom the commodities they
produce are consumed
Pride of skilled production
→ Increased confidence from gaining
adequate livelihood and maintaining family
→ Environment enhancing activities
Significance of linkages beyond
marketplace 2
There are over 500 million family farms
They are responsible for at least 56% of
agricultural production on 56% of the land
Coffee: 70%
Green economy never realized without
Family agriculture
Small farmer’s Pride for Future

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“Fair” Trade Coffee Prospects for “Equitable” Green Economy

  • 1. “Fair” Trade Coffee Prospects for “Equitable” Green Economy Ken-ichi ABE Research Institute for Humanity and Nature (RIHN), Kyoto, Japan
  • 2. ・Brought by Dutch colonists ・Commonly cultivated ・90% of regional income come from coffee ・More than ¼ of family entirely dependent on coffee production ・Small cultivators buy staple foods and necessaries from coffee revenues only Coffee Cultivation in East Timor
  • 3. ・ Mountainous topography → limited agricultural land ・ Strongly seasonal climate → limited planting season ・ Soil derived from limestone → chemically rich but physically difficult to cultivate far away from self-sufficiency of food Agricultural Context in East Timor
  • 4.
  • 5. Arabica variety—prized Traditional cultivation - shade grown plant shade tree, then coffee seedling - no agricultural chemicals, no fertilizer - no pruning, no weeding (not “cultivator,” but “harvester”) Environment Conserving ← Creating Forest - bird friendly - forest compatible Coffee production in East Timor A favored coffee producing environment…
  • 6.
  • 7.
  • 8.
  • 9. Low yields Poor quality (Potentially high quality) Poor harvest & post-harvest techniques: ・ harvesting unripe cherries ・ leaving cherries un-peeled after harvest ・ improper drying ・ no selection for quality Purchase price remained low But……..
  • 10. Is it difficult to improve quality of their coffee? No, not at all it is simple ・ harvesting only red ripe cherries ・ peel cherries at the end of day-harvest ・ proper drying just do not left beans too long in sunshine ・ do selection for quality
  • 11.
  • 12. Is it difficult to improve quality of their coffee? No, not at all Why are coffee growing communities rarely interested in improving quality?
  • 13. ・Little access to knowledge/methods for improving quality and adding value ・They are cut off from outside market: one agent/buyer, with fixed price ・Local price does not reflect real market price, so weak incentive to improve quality
  • 14. Investment of the outside resource to exploit the full potential of coffee (1)Putting local farmers/producer in global context Research: NGO and University (2) Improving agro-ecological, harvesting, and processing techniques Coffee company: PT. Toarco tradja (Indonesia) (3) Empowering producer by promoting consumer/public to select “green” products To improve cultivator’s status within commodity chain (involvement in adding-value) Project to improve
  • 15. Existing coffee company has shown no interest → too little quantity starting cost is too high. It can be a “green economy” It is difficult to double yield, but easy, by proper harvest and post-harvest processes, to double purchase price. (17cents/kg in 2002 → 1 dollar 50cents/kg in 2013) Can it be realized as business?
  • 18. Production Emphasizing environmental conservation, coffee quality, to add value in the international market. Consumption Inspire consumers to know how and by whom the commodities they consume are produced Fair trade: Links between production and consumption
  • 19.
  • 20. Child Labor → Family work
  • 21.
  • 22. Improved quality of connection: Overcome “Not In My Backyard” sentiments Overcome dichotomy of Producer/Consumer → Producer/Co-producer Significance of linkages beyond marketplace
  • 23. Inspire consumers to know how and by whom the commodities they consume are produced Encourage producers how and by whom the commodities they produce are consumed Pride of skilled production → Increased confidence from gaining adequate livelihood and maintaining family → Environment enhancing activities Significance of linkages beyond marketplace 2
  • 24. There are over 500 million family farms They are responsible for at least 56% of agricultural production on 56% of the land Coffee: 70% Green economy never realized without Family agriculture