Worldwide Sustainable Coffee Fund

By International Coffee Organization

October 27, 2015

Situation

Coffee is grown in 50 countries over 4 continents; its production represents the main income to 25 million people. Since the production area is near the equator, they are located exclusively in developing countries in Central and South America, Africa and Asia. By now, for over three years, coffee has been traded at the world markets at a value of between 50 and 60 per cent of its previous price level due to an over production and flattened out consumption. The reduced revenue is simply unbearable for the peasants, most of them small, family sized. In addition to the humanitarian disaster, there is a real potential for growing and geographically expanding social problems: migration to the urban areas, immigration into Europe and the US, switch to illegal income procurement such as criminality, prostitution, drug cultivation and traffic. Coffee is the second to-biggest commodity traded in the world, just after petroleum. Expressed in figures, the income for the coffee-producing farmers was reduced from US$ 12 billions to US$ 5,5 billions.Most of the international governmental and non governmental organizations, such as EU, UN,Worldbank etc., have contributed to find a solution to this coffee crisis. All participants have agreed that there is an urgent need for action – the initiatives undertaken so far however have not yet brought the decisive turn-around. The majority of the coffee experts are in agreement on the direction which will lead out of the coffee crisis, such as promotion to stimulate consumption and coaching of the producers to gradually increase sustainability. On the other hand, concrete proposals for its financing and implementation have so far not been presented.

Objective

The Worldwide Sustainable Coffee Fund will provide added value to everybody involved. Through a higher quality of the coffee and accompanying marketing the consumer will be induced to enjoy more coffee what will lead to an increased demand and finally to a reduction of the oversupply. The improved quality will be provided through specific programs of agricultural measurements and methods of processing in the producing countries. A large importance will be given to the environmental and social sustainability and to the economic stability within the entire coffee business.