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2015 | OriginalPaper | Chapter

9. Certified Coffee and Solidarity

Author : Yukio Ikemoto

Published in: Solidarity Economy and Social Business

Publisher: Springer Japan

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Abstract

During the Coffee Crisis in the early 2000s, consumers in developed countries enjoyed cheap coffee while coffee farmers in developing countries suffered from poverty. Thus globalization disconnected the farmers in developing countries and consumers in developed countries. Farmers are interested only to increase the production volume and they do not care for what kind of coffee the consumers may prefer. On the other hand, the consumers are looking for cheap coffee products and do not care the impacts of their behavior on the environment and the life of the farmers. After the Coffee Crisis, consumers began to know this relationship and some of them tried to help the poor farmers by buying at higher price as is the case of Fair Trade. In the same way, some of them who are interested in environmental protection and willing to pay more to avoid environmental destruction supported other certified coffee such as Rainforest Alliance. It is not easy for consumers to contact directly with farmers and we need intermediaries to connect them. In the case of coffee this role is taken by the certificates such as Fair Trade. Even though the percentage of certified coffee may be small, its influence is widespread. With the development of information technology, the role of such intermediaries will be more and more important.

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Footnotes
1
See Phan et al. (2007) for more detailed analysis on the relationship between Vietnamese coffee and ethnic minority people.
 
2
This is the case for Arabica coffee. The other species of coffee such as Robusta can be grown at lower altitude and higher temperature. The difference between Arabica and Robusta will be explained in Sect. 9.3 of this chapter.
 
3
The effectiveness of the shade tree in reducing risks economically and environmentally is advocated by some organizations. See http://​nationalzoo.​si.​edu/​scbi/​migratorybirds/​coffee/​lover.​cfm.
 
4
This phenomenon often appears in the case of agricultural products, which is known as the cobweb theorem in economics.
 
5
This reminds us of the export pessimism of the Prebisch-Singer thesis.
 
6
“Available supplies of robusta were particularly high, but demand continued to concentrate more on arabicas. Increasing fierce competition in robusta was anticipated, given that large crops were also expected in Indonesia and India as well as in Vietnam. … In 2000, coffee prices fell to the depressed levels of 1992/1993 that preceded frosts in Brazil. The chief contributor to this was Vietnam, which has become the world’s second biggest coffee producer, ahead of Colombia. …The most dramatic prices losses were for robusta—of which Vietnam is now the world’s leading producer—with robusta prices hitting their lowest level since 1975” (UNCTD and CyclOple 2000, p. 173).
 
7
Technically speaking, Robusta should be called canephora. However, Robusta is more popular and therefore Robusta is used in this chapter.
 
8
The coffee fruit is usually called “coffee cherry” because it looks like a cherry.
 
9
See MPI and UNDP (2000a, b, 2001), World Bank et al. (1999), World Bank and DFID (1999) for the general situation of poverty in Vietnam.
 
10
Sen (1981, 2009) wrote about the case of Bengal Famine. The government underreported the death in the famine, and did not take serious action to save the starving people. What changed the situation was a report of a newspaper on the real situation, by which the government began to take action to save the people in hunger.
 
11
It should be mentioned that many of the consumers were enjoying the cheap price. However, this situation is not sustainable because farmers could not continue to grow coffee. Or if they could, they could not maintain the quality because they could not invest at the cheap price. In order to maintain the quality, farmers need to buy more input and to devote more time to take care of coffee trees, which is not profitable at the cheap price.
 
12
For this purpose, Amartya Sen (1985, 1992, 1997, 1999) proposes the capability approach. The basic idea is that we need more information to evaluate the well-being of people. We cannot measure it only by income because people have different ability to make use of the income. For example, handicapped people or discriminated people can achieve much less than what non-handicapped people or non-discriminated people can do and can be. Instead of income, he proposes to focus on what a person can do and can be, which he calls capability. An application of the capability approach to Vietnam is found in Ikemoto (2001). Injustice can happen when we don’t know the situation. We need more information to change our society for the better. Solidarity is a way to increase the information by knowing each other well.
 
13
Sen (2009) refers to the obligations of power presented by Gautama Buddha in Sutta Nipata. “Buddha argues there that we have responsibility to animals precisely because of the asymmetry between us, not because of any symmetry that takes us to the need for cooperation. He argues instead that since we are enormously more powerful than the other species, we have some responsibility towards other species that connects exactly with this asymmetry of power.” (The Idea of Justice, Chap. 9. Plurality of Impartial Reasons, p. 205).
 
14
Sen wrote, “As Immanuel Kant argued, many of the obligations that we recognize take the form of what he calls ‘imperfect obligations’, which are not defined in any particularly precise way, and yet they are neither absent nor negligible” (Sen 2009, Chap. 6. Closed and Open Impartiality, p. 129).
 
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Metadata
Title
Certified Coffee and Solidarity
Author
Yukio Ikemoto
Copyright Year
2015
Publisher
Springer Japan
DOI
https://doi.org/10.1007/978-4-431-55471-4_9