Suite 20, 266 Banbury Road,
Oxford, OX2 7DL, UK,
To whom this may concern,
I am forwarding you a copy of an email of inquiry
addressed and sent to Oxfam America over 3 months
ago with regards to the advocacy work of Oxfam
vis-a-vis the severe (ongoing) global coffee "crisis"
and the 2007 International Coffee Agreement.
Unfortunately, my inquiries have remained unanswered
to this day. I therefore request you to please forward
a copy of my email of inquiry (attached below)to
whom it may concern within Oxfam International, so
that I may (hopefully) get a response to my inquiries.
I thank you for looking into my inquiry and I hope
to hear back from Oxfam International in the near
future.
Best regards,
Arya Tajdin
Executive Director
Yajna Centre
Dar es Salaam, Tanzania
--- Yajna Centre
> Date: Thu, 2 Oct 2008 05:31:57 -0700 (PDT)
> From: Yajna Centre
> Subject: Fwd: 2007 International Coffee Agreement &
> the coffee crisis...
> To: hdasilva@oxfamamerica.org
>
> Please forward to this email to:
>
> Seth Petchers
> Coffee Campaign Manager
> Make Trade FAir
> Oxfam America
>
> Thank you.
>
> --- Yajna Centre
>
> > Date: Thu, 2 Oct 2008 05:19:46 -0700 (PDT)
> > From: Yajna Centre
> > Subject: Fwd: 2007 International Coffee Agreement
> &
> > the coffee crisis...
> > To: hdasilvia@oxfamamerica.org
> >
> > Helena Dasilva
> > Oxfam America
> >
> > Dear Helena Dasilva,
> >
> > I am forwarding you a copy of an email of inquiry
> > addressed and sent to Oxfam America over 3 months
> > ago
> > with regards to the 2007 International Coffee
> > Agreement, within the context of the severe
> ongoing
> > global coffee "crisis".
> >
> > Unfortunately, my inquiries have remained
> unanswered
> > to this day. I therefore request you to please
> > forward
> > a copy of my email of inquiry (attached below)to
> > whom
> > it may concern within Oxfam, so that I may
> > (hopefully)
> > get a response to my inquiries.
> >
> > I thank you for looking into my inquiry and I hope
> > to
> > hear back from you/Oxfam in the near future.
> >
> > Best regards,
> >
> > Arya Tajdin
> > Executive Director
> > Yajna Centre
> > Dar es Salaam, Tanzania
> >
> > Subject: RE: Letter to Nestor Osorio re. the
global coffee "crisis"...
Date: Fri, 3 Oct 2008 10:51:05 -0400
From: "Helen Dasilva"
View Contact Details Add Mobile Alert
To: arya@yajnacentre.com
Hello,
Seth is no longer with Oxfam.
While we are still supporting coffee farming
cooperatives in Ethiopia, we do not currently have
some who can provide comment on the ICO. Sorry I
couldn't be of more assistance.
Helen
> > --- Yajna Centre
> >
> > > Date: Wed, 18 Jun 2008 12:33:03 -0700 (PDT)
> > > From: Yajna Centre
> > > Subject: I2007 nternational Coffee Agreement &
> the
> > > coffee crisis...
> > > To: maketradefair@oxfamamerica.org
> > > CC: info@oxfamamerica.org
> > >
> > > Oxfam America
> > > 226 Causeway St., 5th Floor
> > > Boston, MA 02114 Oxfam America
> > > 226 Causeway St., 5th Floor
> > > Boston, MA 02114
> > >
> > > Re: 2007 International Coffee Agreement
> > >
> > > To whom this may concern,
> > >
> > > I am writing to you with reference to the
> > following
> > > statement published by Oxfam on its website
> > > (www.maketradefair.com) with regards to the 2007
> > > International Coffee Agreement.
> > >
> > > "Coffee agreement bears the mark of Oxfam's
> > > campaigning
> > >
> > > Oxfam and our coffee partners around the world
> > > welcome
> > > the new International Coffee Agreement signed in
> > > September. "The agreement bears the mark of
> > Oxfam's
> > > relentless campaigning the last five years",
> said
> > > Seth
> > > Petchers at Oxfam America.
> > >
> > > The International Coffee Organisation is the
> only
> > > forum that brings most coffee producer and
> > consumer
> > > countries together to address the problems
> facing
> > > the
> > > coffee sector. Since the launch in 2002 of the
> > > report
> > > Mugged: Poverty in Your Coffee Cup, Oxfam has
> been
> > > calling on the organisation to put the interest
> of
> > > small-scale coffee farmers first.
> > >
> > > The new agreement shows that Oxfam's campaign to
> > > Make
> > > Trade Fair has made important headway. In
> > particular
> > > Oxfam welcomes three important steps towards a
> > > sustainable coffee sector:
> > >
> > > Producer and consumer countries now have a
> > > responsibility to make coffee farming benefit
> > > small-scale farmers and their communities.
> > >
> > > A sustainable coffee sector has been recognized
> as
> > > being crucial to overcome poverty.
> > >
> > > Farmers' voice has been strengthened by ensuring
> > > participation of producer groups and NGOs in a
> > newly
> > > formed forum to look at financing for the coffee
> > > sector.
> > >
> > > With the agreement signed the hard work of
> > > implementing these promises must begin. Millions
> > of
> > > lives depend on it. » end of Oxfam quote
> >
> > source: www.oxfamamerica.org
> > >
> > > Surprisingly, however, the 2007 ICA does not
> > contain
> > > any provisions to address and resolve the
> > following
> > > root (economic) causes which led to the coffee
> > > “crisis” which ruined and threw millions of
> coffee
> > > farmers around the world into mass poverty and
> > > misery.
> > >
> > > Root (economic) causes behind the crisis:
> > >
> > > Long-term market imbalance between supply &
> demand
> > > resulting in structural over-supply of coffee
> > which
> > > in
> > > turn translates into constantly declining, low
> and
> > > unremunerative real coffee prices which do not
> > > reflect
> > > or take into account real production costs.
> > >
> > > In fact, statistical data collected and
> published
> > by
> > > the ICO clearly reveals a structural long-term
> > > market
> > > disequilibrium between supply and demand –
> > worsened
> > > by
> > > exponential increases in production by both
> Brazil
> > &
> > > Vietnam from 1997-1999 within a background of
> > > stagnant
> > > demand/consumption - resulting in a structural
> > > over-supply of coffee on the world market ( + 30
> > > million bags) which has directly caused and led
> to
> > > the
> > > crash in coffee prices observed from
> 1999-2004/05.
> > >
> > > Excess stocks 2006/07
> > >
> > > 51.6 million bags = 62 % of 2006/07
> > > imports/consumption = +6 months stock
> > >
> > > Source: ICO 2006/07 annual report
> > >
> > > Vicious trap cycle
> > >
> > > To make up for the loss in revenue resulting
> from
> > > low
> > > and constantly declining real prices of coffee,
> > > farmers produce and export more coffee, which in
> > > turn
> > > results in creating a further excess supply of
> > > coffee
> > > on the world market, further reducing both world
> > > cocoa
> > > prices and farm gate prices, thus further
> > > marginalizing and impoverishing both cocoa
> farmers
> > > and
> > > cocoa producing & exporting nations.
> > >
> > > This is a vicious trap cycle which MUST be
> broken.
> > >
> > > “Structural over supply in the commodity market
> > lies
> > > at the heart of global poverty and instability.”
> > > (Brandt Report)
> > >
> > > Example: Vietnam
> > >
> > > Vietnam exponentially increased its coffee
> exports
> > > from 387,000 metric tons to 700,000 metric tons
> > > between 1998 and 2002 respectively,
> significantly
> > > increasing world supplies and – along with
> Brazil
> > -
> > > directly contributed to an excess supply of
> coffee
> > > during this period ( + 25 million bags) which
> led
> > to
> > > the plunge/crash in coffee prices which followed
> > and
> > > lasted from 1999/2000 to 2003/04.
> > >
> > > As a direct result, both world coffee prices and
> > FOB
> > > coffee prices in Vietnam plunged from an annual
> > > average of $1500 per metric ton in 1998 to
> $428/mt
> > > in
> > > 2002; consequently, Vietnam’s export revenue
> > > declined
> > > by 50% from $600 million in 1998 to 300 million
> in
> > > 2002, despite Vietnam’s 80% increase of coffee
> > > exports
> > > during this period– or rather because of
> Vietnam’s
> > > significant increase in supply – which led to an
> > > excess supply of coffee during this period and
> > > resulted in a plunge/crash in coffee prices on
> the
> > > world market from $2500 metric ton in 1998 to an
> > > average of $1000 metric ton from 2000-2004/05,
> in
> > > conformity with King’s Law of Demand.
> > >
> > > King’s Law of Demand
> > >
> > > King’s Law of Demand clearly states that a
> > > surplus/deficit in a commodity will lead to a
> > > proportionally greater decline/increase
> > respectively
> > > in the price of the said commodity relative to
> the
> > > surplus or deficit. (i.e. a surplus of 10% in
> the
> > > supply of coffee will lead to a decline of more
> > than
> > > 10% in the price of coffee, and vice versa.)
> > >
> > > Tragically, statistical data and historical
> > evidence
> > > clearly demonstrates that coffee producing &
> > > exporting
> > > countries have been unaware of and/or ignoring
> > this
> > > crucial economic law, digging their own mass
> > graves
> > > in
> > > the process…
> > >
> > > INTERNATIONAL COFFEE AGREEMENTS ( ICA )
> > >
> > > Market imbalance & structural over-supply
> > >
> > > I have gone through the 2007 International
> Coffee
> > > Agreement ( ICA). Surprisingly, there are no
> > > provisions in the 2007 ICA to address and
> resolve
> > > the
> > > crucial issue of market imbalance, as has been
> the
> > > case with the previous 1994 and 2001 ICA since
> the
> > > suppression of production quotas, stock control
> > > provisions as well as of the Promotion Fund from
> > the
> > > ICA in 1989, which inevitably and directly
> > cumulated
> > > into the present coffee crisis.
> > >
> > > Question:
> > >
> > > How does OXFAM expect the ICO to achieve its
> > stated
> > > mission of “achieving a sustainable coffee
> sector,
> > > particularly with respect to poverty
> eradication”
> > if
> > > the 2007 ICA does not even address (and resolve)
> > the
> > > root cause of the crisis?
> > >
> > > Speculation
> > >
> > > “The problem of the deterioration in real export
> > > prices has become even more complicated by the
> > > increase in price volatility levels.
> International
> > > coffee prices have shown a fluctuation of more
> 50
> > > percent annually in recent years whereas during
> > > periods when the market was regulated prices
> > > fluctuated between 10-15 percent around their
> > > medium-term trend. These high levels of price
> > > instability have a very negative effect on the
> > > development process, as has been confirmed by a
> > > number
> > > of studies carried out by the World Bank.”
> (Jorge
> > > Cardenas, Chairman of the 1st World Coffee
> > > Conference,
> > > 2001, London )
> > >
> > > Coffee prices are characterized by extreme
> > > volatility
> > > and instability due to speculative trading of
> > coffee
> > > on the futures commodities exchange markets of
> > > London
> > > and New York, which in turn sets and determines
> > > coffee
> > > prices based on previsions of future market
> > > fundamentals, using various speculative
> parameters
> > > such as future supply & demand, world stocks,
> > > climate
> > > and geopolitical situation in coffee producing
> > > countries, currency fluctuations, etc., and thus
> > do
> > > not reflect or take into account real production
> > > costs.
> > >
> > > As David Ricardo clearly stated:
> > >
> > > “It is production costs, not the interaction
> > between
> > > supply and demand that sets and determines
> prices
> > of
> > > commodities.” ( David Ricardo, Principles of
> > > political
> > > economy and taxation).
> > >
> > > Again, surprisingly, there are no provisions in
> > the
> > > 2007 ICA to address and regulate speculative
> > trading
> > > of coffee on the futures exchange markets which
> > > result
> > > in extremely volatile, unstable and
> unremunerative
> > > prices of cocoa which do not reflect or take
> into
> > > account real production costs.
> > >
> > > Question:
> > >
> > > 3) How does OXFAM expect the ICO to achieve a
> > > sustainable coffee economy to benefit
> small-scale
> > > farmers and their communities with the objective
> > to
> > > reduce poverty given the fact that the 2007 ICA
> > > contains no provisions to regulate speculative
> > > trading
> > > of coffee on the futures commodities exchange
> > > markets
> > > which results in highly volatile and
> > unremunerative
> > > coffee prices which do not reflect or take into
> > > account real production costs?
> > >
> > > Exchange rate fluctuations
> > >
> > > Currency exchange rates fluctuations have a
> direct
> > > impact on both the cost and the real price of
> > coffee
> > > and thus on the revenue of both coffee farmers
> and
> > > coffee producing & exporting countries. A
> > > devaluation
> > > of the US dollar translates into a decrease in
> > real
> > > revenue for producing countries & offsets any
> > > marginal
> > > increase in coffee prices on the world market.
> > >
> > > In fact, over the last five years, the value of
> > the
> > > US
> > > dollar has fallen by over 40% vis-à-vis the
> Euro.
> > > Since coffee prices are quoted and sold in US
> > > dollars,
> > > this obviously translates into substantial
> > financial
> > > loses for coffee producers. However,
> surprisingly
> > (
> > > and tragically), past and present ICAs have
> never
> > > contained provisions to address this crucial
> > > parameter…!
> > >
> > > Increase in the price of oil
> > >
> > > The price of crude oil is a determinant factor
> in
> > > the
> > > costing and profitability of coffee farmers. As
> > you
> > > know, oil prices have exponentially increased
> over
> > > the
> > > last 6 years – from $US 20$ in 2002 to over $ US
> > > 120/barel currently– significantly increasing
> the
> > > cost
> > > of production, as prices of inputs have
> > skyrocketed.
> > >
> > > The deadly combination of the significant
> > > devaluation
> > > of the US dollar and the exponential increase of
> > the
> > > price of oil over the last 5-6 years directly
> and
> > > exponentially increases the cost of production
> of
> > > coffee producers on the one hand while
> > significantly
> > > decreasing both the real price of coffee and the
> > > revenue and profitability of coffee producers on
> > the
> > > other.
> > >
> > > Tragically, however, the 2007 ICA does not
> contain
> > > any
> > > provisions to address this crucial issue…!
> > >
> > > In view of the above observations, the following
> > > questions arise:
> > >
> > > 4) How does OXFAM expect the ICO to achieve a
> > > sustainable coffee sector, particularly with
> > respect
> > > to poverty eradication given the fact that the
> > 2007
> > > ICA does not contain any provisions to address
> the
> > > above briefly-outlined crucial economic issues (
> > i.e
> > > market imbalance, structural over-supply, excess
> > > stocks, speculative trading, currency exchange
> > rates
> > > fluctuations, oil prices, etc.) which have a
> > direct
> > > and significant impact on coffee prices and on
> the
> > > cost, revenue and profitability of coffee
> > producers?
> > >
> > > 5) How does OXFAM expect the ICO to promote a
> > > sustainable coffee economy for the benefit of
> > > small-scale farmers in coffee producing
> countries,
> > > particularly with respect to poverty
> eradication,
> > > without addressing and resolving the above
> > outlined
> > > crucial (economic) issues within the coffee
> > sector?
> > >
> > > I thank you for shedding some light into these
> > > interrogations and I look forward to hearing
> back
> > > from
> > > you in the near future.
> > >
> > > Best regards,
> > >
> > > Arya Tajdin
> > > Executive Director
> > > Yajna Centre
> > > Dar es Salaam, Tanzania
> > >
From: "Information"
To: arya@yajnacentre.com
CC: hdasilva@oxfamamerica.org
Subject: Re: Fwd: 2007 International Coffee Agreement & the coffee crisis...
Date: Tue, 7 Oct 2008 14:10:48 +0100
Dear Arya,
Thank you for forwarding your email to us here at Oxfam International.
It appears that your email was answered by Helen DaSilva at Oxfam America on 2 October:
Hello,
Seth is no longer with Oxfam.
While we are still supporting coffee farming
cooperatives in Ethiopia, we do not currently have
some who can provide comment on the ICO. Sorry I
couldn't be of more assistance.
Helen
I am afraid that we cannot provide you with any more information than Helen has given. It may be worth contacting the ICO directly: http://www.ico.org/contacts.asp.
Please do not hesitate to contact us if you have any queries regarding any other aspects of Oxfam's work.
Best wishes,
Tessa Stanley Price
Oxfam International
Date: Tue, 7 Oct 2008 13:54:20 -0700 (PDT)
From: "Yajna Centre"
Subject: Re: Fwd: 2007 International Coffee Agreement & the coffee crisis...
To: "Information"
CC: HDasilva@OxfamAmerica.org
Dear Tessa Stanley Price
Oxfam International
Dear Tessa Stanley Price ,
It is unfortunate that Oxfam categorically refuses to
respond to the enquiries raised in my email relating
to the 2007 International Coffee Agreement, given
the fact that Oxfam actively participated in its
design and supported and applauded its inauguration,
as the following quote by Seth Petchers of Oxfam
America testifies:
"Coffee agreement bears the mark of Oxfam's
campaigning. Oxfam and our coffee partners around the
world welcome the new International Coffee Agreement
signed in September. The agreement bears the mark of
Oxfam's relentless campaigning of the last five
years".
Strangely (and tragically), however, Oxfam's
"relentless campaigning of the last five years"
brilliantly failed to address and resolve the root
economic causes of the global coffee "crisis" (as
outlined in my email), which led to the MASS ECONOMIC
GENOCIDE of millions of coffee farmers around the
world. In fact, it is disturbingly surprising to
witness that none of the root (economic) causes which
directly led to the coffee 'crisis - i.e. market
imbalance, structural over-supply, speculative trading
of coffee on the futures markets, currency exchange
rate fluctuations, oil prices, etc. - were not EVEN
ADDRESSED in Oxfam's "relentless campaigning" and
advocacy work relating to the coffee "crisis" and more
specifically to the new 2007 International Coffee
Agreement ( i.e. Grounds for Change: Creating a
Voice for Small Coffee Farmers and Farmworkers with
the Next International Coffee Agreement. Seeking
Common Grounds:Analysis of the Draft Proposals for the
International Coffee Agreement, etc.)
It is unfortunate that Oxfam refuses to respond to my
enquiries. Nevertheless, Oxfam will have to bear legal
responsibility for the resulting consequences of the
2007 International Coffee Agreement on the lives of
millions of coffee farmers worldwide...
I did contact and write to the International Coffee
Organization. I am forwarding you a copy of my letter
addressed to Mr. Nestor Osorio - Executive Director of
the ICO - with regards to the coffee "crisis" and the
2007 International Coffee Agreement. Unfortunately,
although not surprisingly, all of the enquiries raised
in my letter have remained unanswered to this day...
The world is now too small for anything but Truth and
Justice...
Truthfully,
Arya Tajdin
Executive Director
Yajna Centre
Dar es Salaam,Tanzania
> > >
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