Poor Farmer

The franchise Second Cup is considering offering a fair trade option both on and off campus Image By: Laura Tomkins By Rebecca Vasluianu Cord Weekly ( http://www.cordweekly.com/ ) Jan 16, 2008 Scrutiny into Second Cup’s lack of fair trade options has become a local concern here at Laurier, as some students are beginning to realize that their beliefs concerning the coffee they drink are false. Groups like Fair Trade Toronto have released statements and issued protests criticizing Second Cup’s lack of fair trade certified coffee, and recently the issue has become a question at WLU. Wilfrid Laurier University Students’ Union (WLUSU) VP: University Affairs Lauren McNiven, for example, has become alarmed by the fact that many students and faculty have no idea that Second Cup is not fair trade certified. “I’ve talked to a lot of people who all cite Second Cup as being fair trade and that led me to go look on their website and read about it,” explains McNiven. “Usually, organizations will h...

Inside the New York Coffee Exchange Source: Coffee Research Institute via coffeeresearch.org There are two markets for coffee: the cash market and the futures market. The cash market is the market today. It is the price you would pay for coffee today if you could receive it today. The futures market is used to help determine the price for future deliveries. It is used to purchase a contract today to guarantee a future shipment of coffee. More importantly, however, the futures market for commodities like coffee is used to help protect against the wild variations that occur due to coffee market speculation. The latter reason will be explained in further detail through the help of an example. Futures Market: Coffee Exchange Analysis Assume it is currently May and assume the “C” market price for July shipment is at 95 cents/lb. Now pretend that today a coffee producer sells two units of coffee (1 unit = 37,500 lbs) to a coffee roaster or importer for 5 cents/lb over the “C.” The cof...

16 Part Curriculum For Grades 4 Through 9 Also Covers Cooperative Economics CSRwire January 16, 2008 WEST BRIDGEWATER, MA - In response to hundreds of requests from parents and teachers the Fair Trade pioneer Equal Exchange introduced today one of the first comprehensive Fair Trade curricula in the U.S. "Win Win Solutions: An Introduction to Fair Trade and Cooperative Economics" is designed for grades 4 through 9 and raises awareness of core issues concerning food production and global trade, and of the role of American consumers. The curriculum helps to demonstrate the link between personal actions and community efforts to create a more just and sustainable world. Win Win Solutions' four units and 16 classes incorporate participatory methods and satisfy many basic U.S. curriculum standards including Social Studies, Geography, Math, and Economics. "After 20 years of talking to and educating American coffee drinkers about Fair Trade, it's time we talked and listen...

By Issayas Mekuria Addis Fortune January 13, 2008 Thirty-three fledgling commercial coffee farms have established their own association - the Ethiopian Coffee Growers, Producers and Exporters Association - in a bid to sell their products directly to foreign importers without paying a cut to middlemen. The Ministry of Justice (MoJ) granted a certificate in recognition of the Association on December 6, 2007. The Association, comprised mostly of new farms, hopes to bring a landmark change to Ethiopia's export coffee business. Currently, producers sell their product to suppliers, facilitated by middlemen who exact commission, and then on to government auction centres. Finally, exporters buy at auctions and sell to foreign importers. Coffee leaves Ethiopian farmers about 17 cents per kilo, but nets the country on average 1.20 dollars per kilo. The Association hopes to narrow that gap. "The trouble of farmers is not only Starbucks; exporters, brokers and policies and rules of the go...

(l. to r.): Robert F. Bukaty / AP; Karen Bleier / AFP / Getty By BILL TANCER TIME January 10, 2008 Over my morning coffee (a grande nonfat latte), I read the news this week that a battle is brewing between Starbucks and McDonald's. According to the story, McDonald's is planning to capitalize on the public's willingness to pay $4 for a cup of coffee by hiring baristas and dropping espresso machines in 14,000 of their fast-food outlets. Meanwhile, Starbucks, with business lagging, is fighting back with an "if you can't beat 'em, join 'em" strategy, by offering heated breakfast sandwiches and adding drive-thru windows to some of their locations. I've always thought of these two chains as polar opposites — one designed as a sophisticated faux living room where customers could get a decent coffee drink and read their newspapers; the other, a riot of plastic-and-vinyl booths and bright fluorescent lighting where meals are counted in billions served. I wo...

SBUX vs. MCD 1-yr chart - Seeking Alpha By Bill Conerly Syndicated from Seeking Alpha blog January 09, 2008 I've used Starbucks' ( SBUX ) business strategy as a way to discuss the Trial and Error Economy. I'm not, by any means, the world's greatest expert on the company, but it provides a great vehicle for teaching about corporate strategy. Now, according to the Wall Street Journal, McDonald's ( MCD ) will sell premium coffee drinks made by baristas at most of their 14,000 stores. How should Starbucks react to the McDonald's threat? Here are some ways: 1. Do nothing. Best implemented with one's nose high in the air, saying that Starbucks customers would never buy coffee at McDonald's. Would work very well for three to six months. Ignores the reality that Starbucks' recent growth has come not from Volvo-driving college grads, but from lower-income, less educated people than they originally served. These are people comfortable at McDonald's. 2....

Trouble has been brewing for some time at iconic global coffee chain Starbucks' rapid expansion — which included outlets in Barnes and Nobles bookstores, product distribution in supermarkets and its own record label — has watered down growth in overall traffic. Alex Hofford / EPA Analysis By John W. Schoen MSNBC January 08, 2008 Is it the coffee? Or too many outlets? Or are cash-strapped latte drinkers simply having second thoughts about shelling out $4 for a caffeine fix that they can get from a fast-food chain for a lot less? Those are some of the questions facing Starbucks Chairman Howard Schultz as he returns to his old job as CEO to try to revive a company whose phenomenal growth and customer focus once made it the darling of investors, business school professors and consumers looking for a little bit of luxury from their daily coffee routine. Buffeted by higher costs, rapid store expansion, improved offerings at fast food competitors like McDonald's, and pressure on consu...