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EL ROSTRO HUMA O DEL CAFÉ y
    su importancia socioeconómica en el mundo




 RAMACAFE VIII - Managua, 2 Septiembre, 2008
 BY MAJA WALLE           GRE - GLOBAL COFFEE REPORTER
       Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
ICARAGUA


                                                          Crop recovery thanks
                                                          to basic husbandry




Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
How Important Is Coffee In The Global Economy??

• As many as 500 million people, 8.1% of total world population, depend on coffee
• Coffee is according to most estimates the 2nd largest traded commodity after oil
• The coffee industry generates about $70 billion to $80 billion in annual value
• 25 million small-holder producer families depend on coffee as their only income
• In the U.S. 150,000 full and time part jobs are created by the coffee industry
• Including indirect jobs, the figure could be as high as 1.8 million people in the U.S.
• In the U.S. alone, the coffee industry generates some $19 billion in annual business
• The specialty coffee industry alone accounts for almost $11billion in annual sales
• In Japan up to 3.1 million direct and indirect jobs are created by the coffee industry
• This represents 4.6% of the entire Japanese work force
• In Russia it is estimated that about 30,000 people work in the coffee business
• In Italy, about 110,000 coffee shops create employment for at least 330,000 people


                   Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Honduras and Specialty Coffee




      Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
COSTA RICA: Selling more than 40% of coffee outside futures




            Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Mexico:




      Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Vietnam


Up-rooting of coffee is taking
place and new plantings appear
to have ceased, but Vietnam
can be expected to remain a
major producer in the future
and quality is being improved
               Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Brazil




         Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Africa




     Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
The Social Impact Of The Crisis In Coffee Producing Countries




       Photos By Marco Ugarte




                Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
The Social impact of the 2000-2004 coffee crisis
•     323,000 coffee jobs were estimated tohave been lost in Guatemala since the onset of the
     crisis while in El Salvador, where the coffee industry accounted for up to 43% of the
     employment in the mid-1990s an estimated 600,000 jobs were lost.
•    In the coffee region of San Marcos de Colon, Honduras jobs were reduced by 75% to only
     600 jobs from 2400 direct jobs previously and the crisis send 72% of the people into
     poverty.
•    690,000 people in El Salvador, Guatemala, Honduras and icaragua are annually seen in
     need for emergency food aid due to droughts and the coffee crisis until Feb 2006
•    50% of the population in those countries live below the U level for extreme poverty of
     US$1/day
•    23% to 48% of children under five years age suffer from chronic malnutrition while
     almost 70% of the communities have no health centre, and 20% have no access to clean
     drinking water
•    70% of the families, or 6.02 million people, in the disaster-prone belt of Central America
     do not own the land on which they live and grow crops
•      early 85% of adults in the region did not finish grammar school and 37% are illiterate
•    Increased cultivation of illegal drugs in Colombia, Peru and Bolivia              Source: World Food Programme




                     Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Mass Migration As Employment Disappears
…And Villages Are Left With Only
Women And Children Left As All
The Work-Age Men Has Migrated
In The Search Of Jobs




            Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Central American Coffee Earnings During Crisis
 Countries     99-00 Bags 99-00 $ 00-01 Bags 00-01 $ 01- 02 Bags 01- 02 $ 02-03 Bags 02-03 $


Costa Rica             2338         288        2197     205.3           2147      173.1      1945   187.2


El Salvador            2496         311        1714     131.8           1531        105      1327   103.3


Guatemala              4902         599        4414       305           3833        270      3800   308.3


Honduras               2857         345        2469       168           2147        140


Nicaragua              1286         169        1422       109           1073            70


Total                13879         1712       12184       919          10733        758


        *All export figures are in 000 Bags




                      Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Illegal Drugs Cultivation and Civil Unrest




         Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Ethiopia, coffee is found everywhere :




              Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Ethiopia:
… but the country
where coffee first
was found by
Kaldi and the
dancing goats,
poverty has
worsened and
Ethiopia is today
effectively poorer
than 10 years ago



            Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Zimbabwe
                                                       shows how badly
                                                       land reform can go
                                                       when everything is
                                                       done wrong, turning
                                                       one of the country’s
                                                       only cash crops in ruin




Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
East Africa Coffee Exports and Earnings Figures

   Countries        Exports in          % of     Exports in     % of     Exports          % of
                    mid or late        export     2000-01      export    2001-02         export
                      1990s           earnings                earnings                  earnings

 Ethiopia                   2050           68          1418         50           1939         40

 Uganda                     4148           70          3075         25           3153         20

 Tanzania                     900           --          874         --           583           --

 Kenya                      1400            --         1220         --           750           --

 Burundi                      500          80           314         --           250           --

 Rwanda                       600          70           267         --           274          43



*All export figures are in 000 Bags




               Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Making the Coffee Industry Sustainable Through the Year 2050

 • Major trends in global development need to be incorporated
 in long-term development models for the coffee industry

 • World population is expected to reach 9 billion by 2050

 • Continuing pressure on land as demand for food crops rise

 • Global warming could “dramatically reduce future coffee
 production in many countries

 • The spread of HIV/AIDS, authorities in Ethiopia estimate
 that 30% of national budget is needed to fight aids by 2015

 • Global trade talks at the WTO must have coffee on agenda

              Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
The myth                                                                 But we are starting
about                                                                    to see the positive
consumption                                                              results of the
in                                                                       ongoing promotion
producing
Countries

 …it’s not that easy as many think

                                    Brazil
                                    shows
                                     it can
                                    be done


              Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Making the Coffee Industry Sustainable Through the Year 2050

                - are we prepared for a new crisis?

   • Crop diversification directed for domestic markets needs

   • Raising productivity and reducing the cost of production

   • Ensuring increasing focus on reforestation

   • Is the specialty market and certification the solution?

   • Making the United Nations Millennium Goals Work




              Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Colombia




Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Average Diversification Within A Colombian Coffee Farm


                                     Plátano
                                       1%

                                                               Montes
             Pastos                                             34%
              35%




                                                               Otros permanentes
                 Caña
                                                                      1%
                  3%
                  Cacao                       Café
                   1%                         25%


                                               Source: National Coffee Growers Federation of Colombia


          Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
Ensure environmental sustainability

Coffee Reforestation In Mexico:
  Sustainability Depends On Shade and Organic




          Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
BAHIA, Brazil: The ew Coffee Frontier




       Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
EL ROSTRO HUMA O DEL CAFÉ y
     su importancia socioeconómica en el mundo




  RAMACAFE VIII - Managua, 2 Septiembre, 2008
 BY MAJA WALLE           GRE       - mwallengren@hotmail.com
        Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008

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Maja wallengren el rostro humano del cafe

  • 1. EL ROSTRO HUMA O DEL CAFÉ y su importancia socioeconómica en el mundo RAMACAFE VIII - Managua, 2 Septiembre, 2008 BY MAJA WALLE GRE - GLOBAL COFFEE REPORTER Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 2. ICARAGUA Crop recovery thanks to basic husbandry Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 3. How Important Is Coffee In The Global Economy?? • As many as 500 million people, 8.1% of total world population, depend on coffee • Coffee is according to most estimates the 2nd largest traded commodity after oil • The coffee industry generates about $70 billion to $80 billion in annual value • 25 million small-holder producer families depend on coffee as their only income • In the U.S. 150,000 full and time part jobs are created by the coffee industry • Including indirect jobs, the figure could be as high as 1.8 million people in the U.S. • In the U.S. alone, the coffee industry generates some $19 billion in annual business • The specialty coffee industry alone accounts for almost $11billion in annual sales • In Japan up to 3.1 million direct and indirect jobs are created by the coffee industry • This represents 4.6% of the entire Japanese work force • In Russia it is estimated that about 30,000 people work in the coffee business • In Italy, about 110,000 coffee shops create employment for at least 330,000 people Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 4. Honduras and Specialty Coffee Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 5. COSTA RICA: Selling more than 40% of coffee outside futures Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 6. Mexico: Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 7. Vietnam Up-rooting of coffee is taking place and new plantings appear to have ceased, but Vietnam can be expected to remain a major producer in the future and quality is being improved Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 8. Brazil Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 9. Africa Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 10. The Social Impact Of The Crisis In Coffee Producing Countries Photos By Marco Ugarte Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 11. The Social impact of the 2000-2004 coffee crisis • 323,000 coffee jobs were estimated tohave been lost in Guatemala since the onset of the crisis while in El Salvador, where the coffee industry accounted for up to 43% of the employment in the mid-1990s an estimated 600,000 jobs were lost. • In the coffee region of San Marcos de Colon, Honduras jobs were reduced by 75% to only 600 jobs from 2400 direct jobs previously and the crisis send 72% of the people into poverty. • 690,000 people in El Salvador, Guatemala, Honduras and icaragua are annually seen in need for emergency food aid due to droughts and the coffee crisis until Feb 2006 • 50% of the population in those countries live below the U level for extreme poverty of US$1/day • 23% to 48% of children under five years age suffer from chronic malnutrition while almost 70% of the communities have no health centre, and 20% have no access to clean drinking water • 70% of the families, or 6.02 million people, in the disaster-prone belt of Central America do not own the land on which they live and grow crops • early 85% of adults in the region did not finish grammar school and 37% are illiterate • Increased cultivation of illegal drugs in Colombia, Peru and Bolivia Source: World Food Programme Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 12. Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 13. Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 14. Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 15. Mass Migration As Employment Disappears …And Villages Are Left With Only Women And Children Left As All The Work-Age Men Has Migrated In The Search Of Jobs Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 16. Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 17. Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 18. Central American Coffee Earnings During Crisis Countries 99-00 Bags 99-00 $ 00-01 Bags 00-01 $ 01- 02 Bags 01- 02 $ 02-03 Bags 02-03 $ Costa Rica 2338 288 2197 205.3 2147 173.1 1945 187.2 El Salvador 2496 311 1714 131.8 1531 105 1327 103.3 Guatemala 4902 599 4414 305 3833 270 3800 308.3 Honduras 2857 345 2469 168 2147 140 Nicaragua 1286 169 1422 109 1073 70 Total 13879 1712 12184 919 10733 758 *All export figures are in 000 Bags Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 19. Illegal Drugs Cultivation and Civil Unrest Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 20. Ethiopia, coffee is found everywhere : Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 21. Ethiopia: … but the country where coffee first was found by Kaldi and the dancing goats, poverty has worsened and Ethiopia is today effectively poorer than 10 years ago Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 22. Zimbabwe shows how badly land reform can go when everything is done wrong, turning one of the country’s only cash crops in ruin Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 23. East Africa Coffee Exports and Earnings Figures Countries Exports in % of Exports in % of Exports % of mid or late export 2000-01 export 2001-02 export 1990s earnings earnings earnings Ethiopia 2050 68 1418 50 1939 40 Uganda 4148 70 3075 25 3153 20 Tanzania 900 -- 874 -- 583 -- Kenya 1400 -- 1220 -- 750 -- Burundi 500 80 314 -- 250 -- Rwanda 600 70 267 -- 274 43 *All export figures are in 000 Bags Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 24. Making the Coffee Industry Sustainable Through the Year 2050 • Major trends in global development need to be incorporated in long-term development models for the coffee industry • World population is expected to reach 9 billion by 2050 • Continuing pressure on land as demand for food crops rise • Global warming could “dramatically reduce future coffee production in many countries • The spread of HIV/AIDS, authorities in Ethiopia estimate that 30% of national budget is needed to fight aids by 2015 • Global trade talks at the WTO must have coffee on agenda Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 25. The myth But we are starting about to see the positive consumption results of the in ongoing promotion producing Countries …it’s not that easy as many think Brazil shows it can be done Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 26. Making the Coffee Industry Sustainable Through the Year 2050 - are we prepared for a new crisis? • Crop diversification directed for domestic markets needs • Raising productivity and reducing the cost of production • Ensuring increasing focus on reforestation • Is the specialty market and certification the solution? • Making the United Nations Millennium Goals Work Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 27. Colombia Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 28. Average Diversification Within A Colombian Coffee Farm Plátano 1% Montes Pastos 34% 35% Otros permanentes Caña 1% 3% Cacao Café 1% 25% Source: National Coffee Growers Federation of Colombia Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 29. Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 30. Ensure environmental sustainability Coffee Reforestation In Mexico: Sustainability Depends On Shade and Organic Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 31. BAHIA, Brazil: The ew Coffee Frontier Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008
  • 32. EL ROSTRO HUMA O DEL CAFÉ y su importancia socioeconómica en el mundo RAMACAFE VIII - Managua, 2 Septiembre, 2008 BY MAJA WALLE GRE - mwallengren@hotmail.com Ramacafe VIII Juntos llegamos mas lejos – Managua, Sep. 2, 2008