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    What Price for Good Coffee?

    Ever since Jesuit monks brought [url-http://www.lookchem.com/cas-846/84650-00-0.html]coffee[/url] to Guatemala three centuries ago, raising the beans has been a losing business for small farmers. Conditions are miserable try lugging 100 lb. of fertilizer up a mountain and even though coffee is the world's second most valuable traded commodity, after oil, the money it brings in is measly. "It's not enough to live on," says Luis Antonio, who has grown coffee near Quetzaltenango, in Guatemala's western highlands, for three decades but gets deeper in debt each year. "What we earn isn't enough to buy food for our children."

    The future of the Fair Trade coffee movement is in question, as some backers raise concerns about whether it has reached the limit of how much it can help. In a private-industry survey last year of 179 Fair Trade coffee farmers in Central America and Mexico, a copy of which TIME obtained, more than half said their families have still been going hungry for several months a year. "When I got the results, I was shocked," says Rick Peyser, director of social advocacy for Green Mountain Coffee Roasters in Vermont, the Fair Trade company that commissioned the survey. "I was ready to quit." Massachusetts Fair Trade firm Equal Exchange spokesman Rodney North admits, "There is a potential disconnect between what the buyer thinks Fair Trade is accomplishing and the situation on the ground," from Latin America to Asia.

    Fair Trade pays $1.55 per lb. for Antonio's organic coffee, almost 10% more than the market price. But Antonio is left with only 50 per lb. after paying Fair Trade cooperative fees, government taxes and farming expenses. By year's end, he says, from the few thousand pounds he grows, he'll pocket about $1,000 around half the meager minimum wage in Guatemala or $2.75 a day, not enough for Starbucks' cheapest latte. The same holds true for other Guatemalan growers, like Mateo Reynoso, also from Quetzaltenango. Without Fair Trade, he says, "we wouldn't be growing coffee anymore." But even Fair Trade prices "haven't kept up" with the costs small farmers face, he adds.

 

 

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