Monday, October 20, 2008

LETTER TO MR. G.V. KRISHNA RAU RE. THE GLOBAL COFFEE CRISIS AND THE 2007 ICA

Date: Thu, 2 Oct 2008 03:49:54 -0700 (PDT)
From: "Yajna Centre" Add to Address Book Add Mobile Alert
Subject: Fwd: coffee crisis...
To: chairman.coffeeboard@gmail.com

Mr. G.V. Krishna Rau
Chairman of the Executive Board of the ICO

Dear sir,

I congratulate you on your new appointment as Chairman
of the Executive Board of the International Coffee
Organization.

I hereby wish to seize this opportunity to forward you
a copy of correspondence addressed to Mr. Nestor
Osorio with regards to the severe ongoing "crisis"
prevailing throughout coffee producing & exporting
countries around the world.

Unfortunately, all the interrogations contained in my
letter of inquiry have remained unanswered to this
day.

Hopefully, you - as the newly appointed Chairman of
the Executive Board of the ICO - will be able and
willing to shed some light into the interrogations
raised in my letter of inquiry.

I thank you for looking into my inquiries and I look
forward to hearing back from you in the near future.

Please find below a copy of my letter of inquiry
addressed and emailed to Mr. Nestor Osorio on 01 June,
2008.

Best regards,

Arya Tajdin
Executive Director
Yajna Centre
Dar es salaam, Tanzania

--- Yajna Centre wrote:

> Date: Sun, 1 Jun 2008 15:29:52 -0700 (PDT)
> From: Yajna Centre
> Subject: coffee crisis...
> To: osorio@ico.org
> CC: ebrahim@ico.org
>
> Mr. Nestor Osorio
> Executive Director
> International Coffee Organization
> London, England
>
> Re: Coffee crisis
>
> Dear sir,
>
> I am writing to you with reference to my email of
> inquiry dated 26 May 2008 with regards to the severe
> crisis prevailing within the coffee sector
> throughout coffee producing & exporting countries.
>
> In response to my email, Mr. Jose Sette
> recommended that I read the information published by
> the ICO on its website. The exercice has indeed
> proven to be very informative but has failed to
> provide answers to the specific questions raised in
> my
> email of inquiry and has raised further
> interrogations.
>
> Please find below my observations and further
> interrogations:
>
> 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.
>
>
> As you clearly stated:
>
> “The coffee price situation arises from an
> imbalance between supply and demand that has now
> lasted for four years, exacerbated particularly by
> substantial increases in production (compared with
> the early 90s) and slow rates of increase in
> consumption.” ( G8 Summit, June 2003) source: ICO
>
> 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 ( +30%) within
> a background of stagnant demand/consumption -
> resulting in a structural over-supply of coffee on
> the world market which has directly caused and led
> to the crash in coffee prices observed from
> 1999-2003.
>
> 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, prevent 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 can the ICO expect 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?
>
> As you have yourself publicly rightly stated:
>
> “ I believe that the real challenge is to develop
> policies and actions to avoid a recurrence of the
> type of imbalance between supply and demand that
> gave rise to the crisis… There is no doubt that the
> overriding need at present remains to guarantee the
> future of coffee
> through addressing the problem of economic
> sustainability, i.e. to ensure that coffee
> production does not continue to entail a loss to
> growers…It follows that the strongest priority is to
> implement measures which encourage balance in the
> market
>
> For many months now the ICO has attempted to alert
> the international community of the
> consequences of a problem caused in essence by the
> continued excess of supply over
> demand….it is vital not to lose sight of the
> pressing need to take substantive measures to
> maintain greater market equilibrium… However I must
> reiterate that the main priority must be measures
> which can actually restore some market balance…
>
> Basically the process of analysis has been
> completed and must now give way to implementing
> solutions…”
> Source: Speech made at the 2nd World Coffee
> Conference, 2003
>
> In view of the above, can you therefore please
> indicate:
>
> 1) what policies and mechanisms the ICO has put in
> place to address, prevent and resolve the short,
> medium and long-term structural market imbalance and
> to stabilize coffee prices at remunerative levels
> based on actual cost of production and in
> equilibrium with the market forces of supply and
> demand?
>
> 2) what policies and mechanisms the ICO has put in
> place to reduce/eliminate the excess stock of coffee
> on the world market which continuously and
> significantly depress real prices of coffee over the
> long run?
>
> 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) what policies and mechanisms has the ICO put in
> place to regulate speculative trading of coffee on
> the futures commodities exchange markets which
> results in highly unstable and volatile coffee
> prices which do not reflect or take into account
> real production costs?
>
> Exchange rate fluctuations
>
> 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 decreased by over 60% 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 loss in value 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, none of the previous three
> ICA’s ( 1994, 2001, 2007) contained any provisions
> to address this crucial issue…!
>
> As you said yourself:
>
> Although current prices are now more in line with
> historical levels and the remuneration of
> coffee-growers has become more compatible with their
> costs, these gains have been significantly eroded by
> factors exogenous to the coffee market. The ascent
> of oil prices to record levels has had a direct
> impact on the costs of farmers’ inputs. In addition,
> the continued weakness of the US dollar, which is
> used as a reference in the international coffee
> trade, has meant that prices of coffee in many local
> currencies did not fully reflect the improvement
> noted above. The weakness of the US dollar continues
> to affect the real income of coffee producers. (ICO
> 2006/07 annual report)
>
> In view of the above observations, the following
> additional questions arise:
>
> 4) How does the ICO explain the fact that none of
> the past ICAs ( 1994, 2001 ) as well as the current
> 2007 ICA do 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 the ICO expect to “promote a
> sustainable coffee economy for the benefit of all
> stakeholders and particularly of small-scale farmers
> in coffee producing countries, particularly with
> respect to poverty eradication,” without even
> addressing – let alone 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
>
>
>
>
>
>

OPEN LETTER TO IRWIN COTLER RE. THE GLOBAL COFFEE "CRISIS" AND THE MASS ECONOMIC GENOCIDE OF MILLIONS OF COFFEE FARMERS WORLDWIDE

Honorable Irwin Cotler
International Human Rights Lawyer
Montreal, Quebec
Canada

cotlei@parl.gc.ca
cotlei1@parl.gc.ca

Dear sir,

I am writing to you to respectfully solicit your legal advice and support to put an end to the injustice suffered by millions of coffee farmers worldwide. In fact, as you may know, the coffee sector has collapsed worldwide following the crash in coffee prices on the world market which lasted from 2000-2005, reaching their lowest level in over a century in 2001. As a direct result, millions of coffee farmers and their families around the world have been thrown deeper into mass poverty, misery, hunger and suffering.

Cynically, however, meanwhile coffee multinationals, traders and retailers are generating millions in profits every year from the sale of coffee worldwide…

“The world coffee economy has evolved over the last few years in a manner which may be qualified as erratic, disorderly and even contradictory. The relative supply scarcity of the mid 1990s, caused largely by climatic conditions, was followed by a short period of moderately high prices that compensated for the losses incurred by the dismantling in 1989 of the International Coffee Agreement’s quota system. However this situation prompted a surge in production that altered substantially the global supply structure and was the cause of the worst coffee crisis ever seen in terms of growers’ incomes.

In contrast, the evolution of the coffee economy in importing countries has shown a
completely different and in fact very positive pattern. The industry has flourished, new
products have been developed, the value of the retail market has more than doubled, and
profits have risen. This is something to celebrate, but the question must nevertheless be
asked as to how long such a state of affairs can be sustained.

The extent of the drop in prices and earnings in the crisis years 2000 - 2004 is very clear In the ten years 1980 – 1989 the ICO Composite Indicator Price for coffee averaged127.92 US cents per lb. and coffee-producing countries earned an average of US$10.2 billion in annual export revenues from coffee. In the five years 2000 – 2004 the average price had dropped to 54.33 cents - the lowest in real terms for 100 years - and annual export earnings to US$6.2 billion.

Certainly the figures for coffee are clear : In the late 1980s and part of the 1990s earnings by coffee producing countries in terms of exports f.o.b. were around US$10-12 billion per year but they have now dropped to around US$5.5 billion. This contrasts with the continued growth in the value of retail sales in consuming countries from around US$30 billion in the 1980s to around US$80 billion at present." Nestor Osorio, Executive Director of the International Coffee Organization (ICO).

Source: www.ico.org




I have attempted to identify the main root (economic) causes which have directly led to the collapse of the coffee sector and to the ruin of millions of coffee farmers worldwide:

Economic factors

1) Market imbalance & structural over-supply

Short, medium and long-term market imbalance between world supply & demand, resulting in a structural over-supply of coffee, which in turn translates into low, constantly declining and *unremunerative ( *below production cost) coffee prices on the world market.

World coffee stocks (2006/07)

51.6 million bags (60kg) = 62 % of 2006/07 consumption = +6 months stock

Source: ICO 2006/07 annual report

2) Speculative trading

Coffee prices are characterized by extreme volatility due to speculative trading of coffee on the futures commodities exchange markets of London and New York which is based on forecasts of future market fundamentals such as supply & demand, world stocks, climate and geopolitical situation in coffee producing countries, currency exchange rate fluctuations, etc., which in turn set and determine coffee prices which do not reflect or take into account real production costs.

3) Currency exchange rate fluctuations

Currency exchange rate fluctuations have a direct impact on both the price and the cost
of coffee and thus on the revenue and profitability of both coffee farmers and coffee producing & exporting countries. As you know, the US dollar has lost over 30% of its value vis-à-vis the Euro over the last 5-6 years. Since coffee prices are quoted in US dollars, a devaluation of the US dollar translates into a decrease in real revenue from coffee exports, with devastating consequences for both coffee farmers and coffee producing and exporting countries.

4) Increase in the price of oil

The price of crude oil is another crucial determining 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 devaluation of the US dollar and the exponential increase in the price of oil over the last 5-6 years 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 International Coffee Agreement (ICA) does not contain any provisions to address and resolve these crucial economic factors which have led to the collapse of the coffee sector and to the ruin of millions of coffee farmers around the world.

The official stated mission of the International Coffee Organization (ICO) & the International Coffee Agreement (ICA)

ICO Mission

“ The International Coffee Organization (ICO) is the main intergovernmental organization for coffee, bringing together producing and consuming countries to tackle the challenges facing the world coffee sector through international cooperation. It makes a practical contribution to the world coffee economy and to improving standards of living in developing countries by:

• enabling government representatives to exchange views and coordinate coffee policies and priorities at regular high-level meetings
• improving coffee quality through the Coffee Quality-Improvement Programme and specific projects
• increasing world coffee consumption through innovative market development activities
• initiating coffee development projects to improve quality and marketing
• encouraging a sustainable world coffee economy
• working closely with the private sector through a 16 strong Private Sector Consultative Board which tackles issues such as food safety
• providing objective and comprehensive information on the world coffee market; and ensuring transparency in the coffee market through statistics.

Source: www.ico.org

International Coffee Agreement 2007

“The International Coffee Agreement 2007, the seventh Agreement since 1962, was agreed by the 77 Members of the International Coffee Council, meeting in London on 28 September 2007. It was formally adopted by the Council through Resolution 431. The Agreement will strengthen the ICO’s role as a forum for intergovernmental consultations, facilitate international trade through increased transparency and access to relevant information, and promote a sustainable coffee economy for the benefit of all stakeholders and particularly of small-scale farmers in coffee producing countries.

The new Agreement is an important instrument for development cooperation and will provide the legal framework for core activities undertaken by the Organization in the future. Around 15 of the ICO’s 45 exporting Members are least-developed countries (with low incomes and high economic vulnerability), and the 25 million small coffee farmers and their families who produce 90% of the world’s coffee are particularly affected by fluctuations in market prices and imbalances in supply and demand. The Preamble specifically acknowledges the contribution of a sustainable coffee sector to the achievement of internationally agreed development goals, including the Millennium Development Goals, particularly with respect to poverty eradication.”

Source: ICO website www.ico.org


Strangely, however, while the 2007 International Coffee Agreement aims “ to promote a sustainable coffee economy for the benefit of all stakeholders and particularly of the 25 million small coffee farmers and their families who produce 90% of the world’s coffee who are particularly affected by fluctuations in market prices and imbalances in supply and demand”, the 2007 ICA does not contain any provisions to address and resolve “fluctuations in market prices and imbalances in supply and demand”, which have led to the collapse of the coffee sector and thrown millions of coffee farmers and their families around the world deeper into poverty.

Moreover, both historical evidence and statistical data on the coffee sector clearly reveals that the ICO and its members have in fact done nothing over the course of the last 17 years - since the collapse of the supply-management mechanism in the 1989 ICA- to achieve market equilibrium between demand and supply and to secure stable and remunerative coffee prices for millions of coffee farmers around the world, contrary to their stated mandate and to the poverty eradication rhetoric preached in their literature.

In fact, statistical data collected and published by the ICO clearly reveal a structural long-term market disequilibrium between supply and demand – worsened by exponential increases in production by both Brazil & Vietnam from 1997-1999 (+30 million bags) within a background of stagnant consumption - resulting in a structural over-supply of coffee on the world market in 1999/2000 (coffee excess stock levels: +60 million bags = +50% of annual demand) ) which in turn inevitably led to the crash in coffee prices observed from 2000-2005 and to the subsequent ruin of millions of small coffee farmers worldwide.

“The coffee price situation arises from an imbalance between supply and demand that has now lasted for four years, exacerbated particularly by substantial increases in production (compared with the early 90s) and slow rates of increase in consumption.”

Nestor Osorio, ICO Executive Director, G8 Summit , June 2003 (source: ICO)

And although the root economic (and political) causes leading to the collapse of the coffee sector have been clearly identified and repeatedly debated over the last 7 years in numerous ‘high-level” international conferences and forums by governments, industry leaders, NGO’s, academics, etc., it is tragic to observe that no solutions have been developed and implemented to this day to resolve the problem. As noted above, the root economic causes which have led to the collapse of the coffee sector and to the ruin of millions of coffee farmers worldwide are not even addressed in the new 2007 International Coffee Agreement…!

“For many months now the ICO has attempted to alert the international community of the consequences of a problem caused in essence by the continued excess of supply over
demand. The problem was analysed in depth at the World Coffee Conference in 2001, more recently at a Round Table held jointly by the ICO with the World Bank in May 2003 and at regular sessions of the International Coffee Council. The issue has been raised at the Johannesburg World Summit on Sustainable Development in 2002, with the governments of developed countries and with international bodies such as the WTO. Although a number of interesting ideas have emerged, it is vital not to lose sight of the pressing need to take substantive measures to maintain greater market equilibrium. Basically the process of analysis has been completed and must now give way to implementing solutions.

The situation revealed here, taken from the perspective of poverty reduction, is
clearly a matter of concern. The impact on poverty of the coffee price crisis, which lasted nearly 5 years from 2000 to 2004 and has only to a modest degree been reversed, has been well documented. *Evidence provided by coffee producing countries to the ICO is compelling (*see copy attached)

The economic impact of coffee on many producing Least Developed Countries
(LDCs) can scarcely be exaggerated. In 1999, before the crisis years, coffee exports
accounted for over 50 per cent of the export earnings of four African LDCs, Burundi,
Ethiopia, Rwanda and Uganda. It has been estimated that some 125 million people
worldwide are dependent on coffee. For several countries in Africa, Asia and Latin America where coffee accounts for a large percentage of exports it has been estimated that losses in earnings from coffee have more than nullified total aid inflows in terms of value.

Coffee farmers have shown enormous resilience and one way or another most have managed to survive and continue to produce. But not all and not at any cost. It now seems likely that, if ways are not found to improve trading conditions in producer countries, this precious commodity, and what is worse, the human beings who grow it, will progressively decline to the point that, in a not too distant future, there may be insufficient coffee and certainly an insufficient quality range of coffee, to trade and to drink”. Nestor Osorio, Executive Director, ICO

Source: ICO documents (www.ico.org)

In view of the above, I strongly feel that legal action must urgently be taken to prevent and to legally put a definite end to the ongoing mass economic genocide of millions of coffee farmers around the world, and to bring those responsible for this “crime against humanity” to justice. In my view, there is no fundamental difference between the mass political genocides which occurred during the Holocaust, or those which occurred more recently in Rwanda and in Darfur, and the mass economic genocides which are taking place everyday around the world as a direct result of unfair and exploitative global trading rules and practices dictated and imposed by a few to the rest of the world.

As Mahatma Gandhi rightly stated:

“You cannot build a non-violent society based on exploitation.
Exploitation is the essence of violence”

The lives of billions of people around the world are at stake. And although global trade injustice is not limited to the coffee sector, I feel that the global coffee sector constitutes a good starting point and a practical example to reveal, address and resolve the injustice suffered by millions of coffee farmers worldwide so as to legally put a definite end to other mass economic genocides occurring daily with impunity throughout the so-called Third-World.





“ The adversity endured by coffee growers in Africa, Asia and Latin America has also been encountered in other agricultural commodities originating in developing countries. In fact the drop in earnings from these commodities constitutes one of the most important causes of world poverty. Several studies coincide in assessing the fall in prices of the major agricultural commodities as between 50 and 86 per cent in the last 20 years, with coffee showing the greatest fall. This loss in income has had a significant impact on the economic and social life of many developing countries.

This issue highlights the role of international commodity bodies such as the ICO in the
context of genuine partnership between developed and developing countries since these
bodies represent a unique forum where all stakeholders are represented on an equitable basis and where the needs and priorities of the major players can be fully represented.”
Nestor Osorio, Executive Director, ICO

As the Brandt Commission wrote (and warned) 30 years ago:

“ Structural over-supply in the commodity markets lies at the heart of global poverty and instability” (Willy Brandt, Brandt Report, North-South/Common Crisis).

I therefore hereby respectfully solicit your legal advice and support in this matter as a staunch defender of justice and human rights.

As Martin Luther King said:

“Injustice anywhere is a threat to justice everywhere”

Please find below a copy of correspondence exchanged between myself and the ICO on the issues raised above. I remain at your disposal for further information. Detailed information on the ICO and the coffee sector can be found at: www.ico.org

I thank you for looking into my inquiry and I look forward to hearing back from you in the near future.

Truthfully,

Arya A. Tajdin
Founder & Executive Director
Yajna Centre
Dar es Salaam, Tanzania

Enclosed:

1) Copy of correspondence exchanged between myself and the ICO
2) Copy of report submitted to the ICO by coffee producing countries on the devastating economic, social and political consequences of the coffee “crisis” in their respective countries.
3) Copy of 2007 International Coffee Agreement

LETTER OF COMPLAINT TO THE INTERNATIONAL CRIMINAL COURT (ICC) RE. THE MASS ECONOMIC GENOCIDE OF MILLIONS OF COFFEE FARMERS WORLWIDE

International Criminal Court (ICC)
Mr. Luis Moreno-Ocampo
Prosecutor
Office of the Prosecutor
Post Office Box 19519
2500 CM The Hague
The Netherlands

otp.informationdesk@icc-cpi.int

Re: Mass economic genocide of millions of coffee farmers, coffee plantation workers & their families worldwide.

Dear Sir,

I hereby respectfully solicit the urgent intervention of the Office of the Prosecutor of the International Criminal Court to prevent and to put a definite legal end to the currently ongoing mass economic genocide of millions of coffee farmers and coffee plantation workers and their families worldwide.

In fact, as you may know, the coffee sector has collapsed worldwide following a crash of coffee prices on the world market from 2000-2005, reaching their lowest levels in over a century in 2001, leading to the economic ruin and the mass economic genocide of millions of coffee farmers and coffee plantation workers and their families in more than 50 coffee producing & exporting countries around the world.

Cynically, however, meanwhile coffee multinationals, traders and retailers are making millions in profits each year from coffee sales worldwide...

As Mr. Nestor Osorio - Executive Director of the International Coffee Organization (ICO) - himself clearly stated:

“The world coffee economy has evolved over the last few years in a manner which may be qualified as erratic, disorderly and even contradictory. The relative supply scarcity of the mid 1990s, caused largely by climatic conditions, was followed by a short period of moderately high prices that compensated for the losses incurred by the dismantling in 1989 of the International Coffee Agreement’s quota system. However this situation prompted a surge in production that altered substantially the global supply structure and was the cause of the worst coffee crisis ever seen in terms of growers’ incomes.

In contrast, the evolution of the coffee economy in importing countries has shown a completely different and in fact very positive pattern. The industry has flourished, new products have been developed, the value of the retail market has more than doubled, and profits have risen. This is something to celebrate, but the question must nevertheless be
asked as to how long such a state of affairs can be sustained.

The extent of the drop in prices and earnings in the crisis years 2000 - 2004 is very clear In the ten years 1980 – 1989 the ICO Composite Indicator Price for coffee averaged127.92 US cents per lb. and coffee-producing countries earned an average of US$10.2 billion in annual export revenues from coffee. In the five years 2000 – 2004 the average price had dropped to 54.33 cents - the lowest in real terms for 100 years - and annual export earnings to US$6.2 billion.

Certainly the figures for coffee are clear : In the late 1980s and part of the 1990s earnings by coffee producing countries in terms of exports f.o.b. were around US$10-12 billion per year but they have now dropped to around US$5.5 billion. This contrasts with the continued growth in the value of retail sales in consuming countries from around US$30 billion in the 1980s to around US$80 billion at present." Nestor Osorio, Executive Director, ICO.

Source: www.ico.org

Summary outline of the root (economic) causes of the crash in coffee prices and the resulting collapse of the global coffee sector.

1) Market imbalance & structural over-supply

Short, medium and long-term market imbalance between supply & demand, resulting in a structural over-supply of coffee on the world market, which in turn translates into low, constantly declining, and non-remunerative real coffee prices which do not reflect or take into account real production costs.
As Mr Nestor Osorio – Executive Director of the International Coffee Organization - clearly stated:

“The coffee price situation arises from an imbalance between supply and demand that has now lasted for four years, exacerbated particularly by substantial increases in production (compared with the early 90s) and slow rates of increase in consumption.” Nestor Osorio, G8 Summit, June 2003

“I believe that the real challenge is to develop policies and actions to avoid a recurrence of the type of imbalance between supply and demand that gave rise to the crisis. There is no doubt that the overriding need at present remains to guarantee the future of coffee through addressing the problem of economic sustainability, i.e. to ensure that coffee
production does not continue to entail a loss to growers. It follows that the strongest priority is to implement measures which encourage balance in the market.”

For many months now the ICO has attempted to alert the international community of the
consequences of a problem caused in essence by the continued excess of supply over
demand. It is vital not to lose sight of the pressing need to take substantive measures to maintain greater market equilibrium. However I must reiterate that the main priority must be measures which can actually restore some market balance.” Basically the process of analysis has been completed and must now give way to implementing solutions.”

Nestor Osorio, extract of speech made at the 2nd World Coffee Conference, 2003

source: www.ico.org

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 in turn directly led to the crash in coffee prices observed from 2000-2005, leading to the collapse of the coffee sector worldwide and to the (ongoing) coffee “crisis” which led to the economic ruin and the mass economic genocide of millions of coffee farmers and coffee plantation workers and their families in more than 50 coffee-producing & exporting countries around the world.

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 coffee prices and farm gate prices, thus further marginalizing and impoverishing both coffee farmers and coffee producing & exporting nations, 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, however, both historical evidence and statistical data clearly reveals that the ICO has in fact not only been ignoring this crucial economic law, but has in fact deliberately developed, pursued and implemented economic policies contrary to this economic law over the last +17 years since the collapse of the supply management mechanism in the International Coffee Agreement (ICA) in 1989, digging the mass graves of millions of coffee farmers and coffee plantation workers and their families worldwide in the process…

This is a vicious and deadly trap cycle which MUST be broken.

As the Brandt Commission wrote and warned 30 years ago:

“ Structural over-supply in the commodities markets lies at the heart of global poverty and instability” (Willy Brandt, Brandt Report).

2) Speculative trading

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 is based on speculative forecasts of future market fundamentals such as supply & demand, world stocks, climate and geopolitical situation in coffee producing countries, currency exchange rate fluctuations, oil prices, etc., which in turn set and determine coffee prices on the world market which do not reflect or take into account real production costs, again contrary to classic economic law which clearly states that:

“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.

3) Currency exchange rate fluctuations

Currency exchange rate fluctuations have a direct impact on both the price and the cost
of coffee and thus on the revenue and profitability of both coffee farmers and coffee producing & exporting countries. As you know, the US dollar has lost over 30% of its value vis-à-vis the Euro since 2001/2002. Since coffee is quoted and sold in US dollars, a devaluation of the US dollar translates into a decrease in real revenue for both coffee farmers and coffee producing & exporting countries, with resulting devastating economic, social and political consequences for coffee producing and exporting nations.

4) Increase in the price of oil

The price of crude oil is another crucial determining factor in the costing and profitability of coffee farmers and coffee producing & exporting countries. As you know, oil prices have exponentially increased over the last 6 years – from $US 20/barrel in 2001/2002 to over $US 130/barrel in July 2008– significantly increasing the cost of production of coffee farmers in the process, as prices of inputs have skyrocketed.

The deadly combination of the devaluation of the US dollar and the exponential increase in the price of oil over the last 6 years 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.

Surprisingly and tragically, however, the newly drafted 2007 International Coffee Agreement (ICA) does not contain any provisions to address and resolve the above briefly-outlined crucial economic factors which have directly led to the collapse of the coffee sector and to the consequent economic ruin and the mass economic genocide of millions of coffee farmers and coffee plantation workers and their families around the world over the last 8 years.

The (official) stated mission of the International Coffee Organization (ICO) & the International Coffee Agreement (ICA)

International Coffee Organization Mission Statement

“ The International Coffee Organization (ICO) is the main intergovernmental organization for coffee, bringing together producing and consuming countries to tackle the challenges facing the world coffee sector through international cooperation. It makes a practical contribution to the world coffee economy and to improving standards of living in developing countries by:

• enabling government representatives to exchange views and coordinate coffee policies and priorities at regular high-level meetings
• improving coffee quality through the Coffee Quality-Improvement Program and specific projects
• increasing world coffee consumption through innovative market development activities
• initiating coffee development projects to improve quality and marketing
• encouraging a sustainable world coffee economy
• working closely with the private sector through a 16 strong Private Sector Consultative Board which tackles issues such as food safety
• providing objective and comprehensive information on the world coffee market; and ensuring transparency in the coffee market through statistics.

Source: www.ico.org

International Coffee Agreement 2007

“The International Coffee Agreement 2007, the seventh Agreement since 1962, was agreed by the 77 Members of the International Coffee Council, meeting in London on 28 September 2007. It was formally adopted by the Council through Resolution 431. The Agreement will strengthen the ICO’s role as a forum for intergovernmental consultations, facilitate international trade through increased transparency and access to relevant information, and promote a sustainable coffee economy for the benefit of all stakeholders and particularly of small-scale farmers in coffee producing countries.

The new Agreement is an important instrument for development cooperation and will provide the legal framework for core activities undertaken by the Organization in the future. Around 15 of the ICO’s 45 exporting Members are least-developed countries (with low incomes and high economic vulnerability), and the 25 million small coffee farmers and their families who produce 90% of the world’s coffee are particularly affected by fluctuations in market prices and imbalances in supply and demand. The Preamble specifically acknowledges the contribution of a sustainable coffee sector to the achievement of internationally agreed development goals, including the Millennium Development Goals, particularly with respect to poverty eradication.”

Source: ICO website www.ico.org

Strangely, however, while the 2007 International Coffee Agreement aims “ to promote a sustainable coffee economy for the benefit of all stakeholders and particularly of the 25 million small coffee farmers and their families who produce 90% of the world’s coffee who are particularly affected by fluctuations in market prices and imbalances in supply and demand”, the 2007 ICA does not contain any provisions to address and resolve “fluctuations in market prices and imbalances in supply and demand”, which have directly led to the collapse of the coffee sector and to the economic ruin of millions of coffee farmers worldwide, throwing them and their families deeper into mass poverty and untold misery.

Moreover, both historical evidence and statistical data collected and published by the ICO on the coffee sector clearly reveals that the ICO and its members have in fact done nothing over the course of the last 17 years - since the collapse of the supply-management mechanism in the 1989 ICA- to achieve market equilibrium between demand and supply and to secure stable and remunerative coffee prices for millions of coffee farmers around the world, contrary to their official stated mission and to the deceitful poverty eradication rhetoric preached in their official literature.

In fact, statistical data collected and published by the ICO clearly reveal a short, medium and long-term market disequilibrium between supply and demand worsened by politically financed, motivated, supported and encouraged exponential increases in production by both Vietnam and Brazil from 1997-1999 (+30 million bags) within a background of stagnant consumption , resulting in a structural over-supply of coffee on the world market in 1999/2000 (coffee excess stock levels: +60 million bags = +50% of annual demand), which in turn inevitably led to the crash in coffee prices observed from 2000-2005 and to the subsequent economic ruin and the mass economic genocide of millions of small coffee farmers, coffee plantation laborers and their families worldwide.

Worse, although both the root economic and political causes leading to the collapse of the coffee sector have been clearly identified by the ICO and their members and repeatedly debated over the last 7 years in numerous ‘high-level” international conferences and forums by governments, industry leaders, NGO’s, academics, etc., it is tragic and criminal to witness that no solutions have been developed and implemented to this day to resolve the root causes which led to the global coffee “crisis”, so as to prevent it from happening again. As noted above, the root economic causes which have led to the collapse of the coffee sector and to the ruin of millions of coffee farmers worldwide are not even addressed in the new 2007 International Coffee Agreement, which has been approved by the Council of the ICO last September 2007 and is currently in the process of ratification by member States of the ICO and due to come into effect in September 2009.




As Nestor Osorio himself clearly stated:

“For many months now the ICO has attempted to alert the international community of the consequences of a problem caused in essence by the continued excess of supply over
demand. The problem was analysed in depth at the World Coffee Conference in 2001, more recently at a Round Table held jointly by the ICO with the World Bank in May 2003 and at regular sessions of the International Coffee Council. The issue has been raised at the Johannesburg World Summit on Sustainable Development in 2002, with the governments of developed countries and with international bodies such as the WTO. Although a number of interesting ideas have emerged, it is vital not to lose sight of the pressing need to take substantive measures to maintain greater market equilibrium. Basically the process of analysis has been completed and must now give way to implementing solutions.

The situation revealed here, taken from the perspective of poverty reduction, is
clearly a matter of concern. The impact on poverty of the coffee price crisis, which lasted nearly 5 years from 2000 to 2004 and has only to a modest degree been reversed, has been well documented. *Evidence provided by coffee producing countries to the ICO is compelling (*see copy attached)

The economic impact of coffee on many producing Least Developed Countries
(LDCs) can scarcely be exaggerated. In 1999, before the crisis years, coffee exports
accounted for over 50 per cent of the export earnings of four African LDCs, Burundi,
Ethiopia, Rwanda and Uganda. It has been estimated that some 125 million people
worldwide are dependent on coffee. For several countries in Africa, Asia and Latin America where coffee accounts for a large percentage of exports it has been estimated that losses in earnings from coffee have more than nullified total aid inflows in terms of value.

Coffee farmers have shown enormous resilience and one way or another most have managed to survive and continue to produce. But not all and not at any cost. It now seems likely that, if ways are not found to improve trading conditions in producer countries, this precious commodity, and what is worse, the human beings who grow it, will progressively decline to the point that, in a not too distant future, there may be insufficient coffee and certainly an insufficient quality range of coffee, to trade and to drink”. Nestor Osorio, Executive Director, ICO

Source: www.ico.org

In view of the very real threat and the serious danger posed on the lives of millions of coffee farmers worldwide, I strongly feel that legal action must urgently be taken by the ICC to legally prevent and to put a definite end to the ongoing mass economic genocide of millions of coffee farmers, coffee plantation laborers and their families around the world, and to bring those responsible for this “crime against humanity” to justice.

In my view, there is no fundamental difference between the mass political and/or war -related genocides such as those which occurred during the Holocaust, in Rwanda, Darfur, etc. and the mass economic genocides occurring daily with total impunity throughout the so-called Third World as a direct result of aggressively oppressive, highly exploitative and profoundly unfair global trading rules and practices developed, pursued, implemented and imposed by a few States, corporations and organizations to the rest of the world.

Indeed, there are far more economic genocides occurring daily worldwide, with total impunity and with far greater casualties and victims. The only difference between the political and/or war genocides and the economic genocides, is that while in the former the victims are exterminated using physical violence and weapons, victims of economic genocides are exterminated through more subtle but equally deadly economic and financial weapons, and usually die anonymously and silently far away from the mass media attention that victims of political and/or war genocides receive…

As Mahatma Gandhi rightly stated:

“You cannot build a non-violent society based on exploitation.
Exploitation is the essence of violence”

The lives of billions of people worldwide are at stake.

As Nestor Osorio himself rightly stated and warned:

“ The adversity endured by coffee growers in Africa, Asia and Latin America has also been encountered in other agricultural commodities originating in developing countries. In fact the drop in earnings from these commodities constitutes one of the most important causes of world poverty. Several studies coincide in assessing the fall in prices of the major agricultural commodities as between 50 and 86 per cent in the last 20 years, with coffee showing the greatest fall. This loss in income has had a significant impact on the economic and social life of many developing countries.

And as the Brandt Commission wrote and warned 30 years ago:

“ Structural over-supply in the commodities markets lies at the heart of global poverty and instability” (Willy Brandt, Brandt Report, North-South/Common Crisis).

“This issue highlights the role of international commodity bodies such as the ICO in the
context of genuine partnership between developed and developing countries since these
bodies represent a unique forum where all stakeholders are represented on an equitable basis and where the needs and priorities of the major players can be fully represented.”

Nestor Osorio, Executive Director, ICO

Source: www.ico.org

In view of the above and “taking into account the gravity of the crime and the interests of victims and of justice,” I hereby respectfully solicit the urgent legal intervention and support of the Office of the Prosecutor of the International Criminal Court – within the framework of the International Criminal Court’s jurisdiction in accordance with the Statute of Rome with respect to the “ Crime of Genocide” and “Crimes Against Humanity” - to 1) prevent and 2) to put a definite legal end to the currently ongoing mass economic genocide of millions of coffee farmers and coffee plantation laborers and their families worldwide and to bring those responsible for this “crime against humanity” to justice. “

Please find below a copy of correspondence exchanged between myself and the ICO on the issues raised above as well as a copy of the new 2007 International Coffee Agreement currently being ratified by member States. Detailed information on the ICO and statistical data on the coffee sector can be found at: www.ico.org.

Also, please find attached a copy of report submitted to the ICO by coffee producing countries on the devastating economic, social, ecological and political consequences of the coffee “crisis” in their respective countries.

More detailed information on the coffee “crisis” and its disastrous impact on the lives of millions of coffee farmers and coffee producing & exporting countries can, of course, be found over the Internet.

I remain at your entire disposal for further information.

I thank you for conducting a preliminary examination into this case and I look forward to hearing back from you in the near future.

Truthfully,

Arya A. Tajdin
Founder & Executive Director
Yajna Centre
Dar es Salaam, Tanzania

Enclosed:

1) Copy of correspondence exchanged between myself and the ICO on the coffee “crisis”
2) Copy of report submitted to the ICO by coffee producing countries on the devastating economic, social and political consequences of the coffee “crisis” in their respective countries.
3) Copy of 2007 International Coffee Agreement

OPEN LETTER TO OXFAM RE. THE GLOBAL COFFEE "CRISIS" AND THE 2007 ICA

Oxfam international Secretariat
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 wrote:

> 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 wrote:
>
> > 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 wrote:
> >
> > > 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" View Contact Details Add Mobile Alert
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" Add to Address Book Add Mobile Alert
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


> > >

THE IMPACT OF THE GLOBAL COFFEE "CRISIS" ON COFFEE PRODUCERS




Impact of the coffee crisis on poverty in producing countries

Please find below a summary report submitted to the International Coffee Organization (ICO) by 14 coffee-producing countries on the economic, social, ecological and political impact resulting from the global coffee "crisis" in their respective countries.

I have recently filed a formal complaint to the International Criminal Court (ICC) in the Hague for the mass economic genocide of millions of coffee farmers worldwide and for "crimes against humanity" resulting from the global (ongoing) coffee crisis.

You can read a copy of the complaint on this blog at the following link:

http://yajnacentre.blogspot.com/2008/10/letter-of-complaint-to-international.html

I welcome your comments and support.

Thank you.

Rgds,

Arya.

SUMMARY OF RESPONSES FROM COFFEE PRODUCING COUNTRIES

CAMEROON

Scale

Two million people are dependent on coffee in a population of 15 million.

Income

Low prices have contributed to reducing production from high levels in the 1980s and 1970s of 124,000 tonnes of Robusta and 31,000 tonnes of Arabica to the present totals of 32,000 tonnes and 5,600 tonnes respectively.

Employment

Many agricultural workers have lost their jobs.

Social

In view of the above many young workers have migrated to the cities which are seeing
increased crime rates. In rural areas less money is available for health care and education, leading to reduced life expectancy and reduction of educational levels.

CENTRAL AFRICAN REPUBLIC

Income

Faced with low income from coffee many small producers have abandoned their farms;
others have turned to food crops, reducing the country’s foreign exchange earning capacity. Especially as the country is landlocked, coffee is uncompetitive at present prices.

Employment

Many traders have left the sector and many rural workers have lost their jobs.

Social

There has been a widespread migration of young people from the country to the towns.
Farmers are leaving coffee growing and are bereft of cash earnings to pay for education, health care, clothing and construction. Poverty has increased substantially.

Other effects

Those producers who continue are reducing the care given to their coffee trees, with a consequent drop in quality.

COLOMBIA

Scale

The coffee industry has been the principal motor of Colombian economic and social
development. For many years coffee was the principal contributor to export earnings and, though its share in total exports revenue has declined, it contributed almost US$890 million in 2003, about 7% of export income.

As the world’s second largest producer with 11.6 million bags in 2002, the coffee culture has assisted in the creation of an economic and social infrastructure within its area of about 800,000 hectares and its area of influence extends to some 3.6 million hectares.

There are 566,000 coffee growers and there are currently some 480,000 families who are directly dependent on coffee production.

Income

In this sense, coffee, including activities related to its cultivation and processing, is still one of the major industries and the first agricultural export item in the country. The average share in the gross domestic product (GDP) and in total agricultural and industrial production during the last six years accounted for an average of 1% of GDP and 10% percent of the total production of both the agricultural and industrial sectors.

However, at a national level, low international prices have reduced coffee contribution to the total economic activity, from 5.3% to 1.3% of GDP during the period 1990 to 2002. Exports earnings have decrease by US$1.5 billion between 1999 to 2002 due to fall in international prices.

Additionally, as measured by the real value of the coffee crop, the coffee sector’s income has fallen by 50% during the last decade, from US$ 1.5 billion to US$737 million last year.

Employment

The coffee industry provides direct employment for some 530,000 people, accounting for 30% of total rural employment. An additional 2 million people are directly and indirectly dependent on the coffee industry. Notwithstanding, if the crisis continues the National Federation of Coffee Growers estimates that approximately 100,000 more people may lose their jobs in the sector.

Social

Given its role as a major source of employment in the rural sector, coffee continues to be indispensable. Coffee has been a major influence in regional development. It has assisted in the creation of an economic infrastructure and a social safety net.
As a result of the international crisis in the coffee sector, coffee producers’ welfare has been severely affected, and there has been a high human cost. According to the research centre Crece (2003), due to the reduced profitability of the coffee sector it is estimated that the number of households in coffee growing areas living under the poverty line rose from 54.2% to 61% between 1997 and 2000.

Coffee growers have become poorer with an increase in sub-standard living conditions and some have been unable to pay for their children’s education. There has been an increase in levels of malnutrition.

Other effects

There has been increased migration to urban centres, especially young people. Some farmers in marginal regions are also replacing coffee by illicit crops, grassland or abandoning plantations.

COSTA RICA

Scale

In a population of 3.9 million in 1999/2000 there were some 73,700 registered coffee
producers, a figure which dropped to 70,500 by 2001/2002, as a result of the crisis.

Income

Since costs of production are not currently covered by prices received farmers have reduced plantation care or abandoned coffee.

Employment

Job losses in the coffee sector are estimated at 10,000.

Social

In the Brunca region, one of the main coffee areas, homes classified as in extreme poverty (per capita income below the cost of the basic food basket) represented 11.8% of the total in 1998. In 2002 this had risen to 13.1%. The national figures were 7.1% and 8.8% respectively.

Other effects

The crisis has had a negative impact on trade, transport, warehousing and the financial system.

CÔTE D’IVOIRE

Scale

Coffee with cocoa forms the basis of the economy for around 7.5 million people out of a population of 17 million. At least 2.5 million people are directly employed in coffee and cocoa.

Income

Reduced fiscal revenues from coffee have severely affected the national investment budget constituting a break on development. Producer prices have fallen from US 41 cents per lb in 1997 to 15 cents in 2002.

Social

The drop in income from coffee has been somewhat compensated by earnings from cocoa.
Nevertheless rural living standards have dropped, and many families are finding problems to pay for education.

Other effects

Levels of care for coffee trees have been reduced, with a consequent drop in quality.

ECUADOR

Scale

There are 105,000 coffee families in Ecuador, with an estimated 800,000 people involved in coffee out of a population of 12 million.

Income

Prices received in the 2003 harvest do not even cover harvesting costs, so many farmers are neglecting or abandoning plantations, or replacing coffee by annual crops or grassland.

Employment

The coffee processing industry is working at one third capacity and has dismissed staff.

Social

Many producers are migrating to cities or abroad, leaving their families behind.

Environmental

Replacement of coffee by annual crops or grass is causing an adverse environmental impact since coffee is normally grown under shade.

Other effects

Research and extension institutions have needed to lay off staff.

EL SALVADOR

Scale

There are around 20,000 coffee growing families in a population of 6.4 million.

Income

Producers have incurred losses since 2000. Current debts of coffee growers are
US$334 million, equivalent to US$257 per quintal produced in 2002/03, four times the
current export price of US$60 per quintal. Reductions in coffee earnings have had a
depressing effect on many other economic areas.

Employment

With respect to salaried employment the crisis has led to permanent job losses of some 113,000.

Social

The World Food Programme has needed to distribute emergency rations to 10,000 coffee-growing families. In many coffee-growing areas malnutrition is affecting 45% of children. In 2003, 52 children in coffee areas have died from malnutrition. 25% of farmers are seeking to sell their land or change their activities and 8% intend to emigrate to the USA.

Environmental

Shaded coffee is practically the only still-forested area in the country. The threat to coffee is thus likely to cause further deforestation.

Other effects

Incidence of coffee berry borer infestation has increased with potential losses of 40,000 bags.

ETHIOPIA

Scale

About 25% of the population of 65 million depends on the production, distribution or export of coffee. There are some 1.2 million coffee farming families.

Income

Many people in the coffee sector are now living on less than US$1 per day. Farmers are now selling coffee at prices well below the cost of production. Since coffee on average constitutes over 50% of export earnings the government is suffering severe fiscal constraints.

Employment

It is stated that there has been a considerable reduction in employment.

Social

Coffee farmers are now unable to pay for their children’s education and for basic medicines. They have also had to cut back on food consumption, living on one meagre meal a day, with frequent cases of malnutrition. There has been increased migration to urban centres, swelling urban unemployment.

Environmental

The environmental impact has been negative with abandonment of coffee farms.

GHANA

Scale

Ghana is a small producer; several hundreds of farmers have coffee as a main source of income.

Income

Prices received by farmers are more volatile as well as lower since marketing system
liberalization. The producer price share of the fob price has moved from 56.93% in 2000 to 55.70% in 2002. Current prices do not cover production costs.

Social

Coffee represents a cash crop element in subsistence farms; cash shortfalls mean less money for health and education. Some farms have been abandoned.

Other effects

Several local traders (licensed buying companies) have closed or been rendered ineffective. There are now 5 active companies out of 50 which are eligible to trade.

INDIA

Scale

There are some 500,000 coffee workers.

Income

Growers find it difficult to cover production costs at present price levels and are reducing inputs and their work force. The sector is facing a credit burden of loan service said to be unmanageable, with a consequent unavailability of further loans from the banking sector. Production is decreasing.

Employment

There have been widespread lay-offs.

Social

Poverty levels have increased significantly in the Western and Eastern Ghats areas.

Environmental

Coffee is mainly grown under shade but growers are now tempted to remove trees and sell them as timber, leading to deforestation and loss of ecological balance. The Western Ghats are rated as one of the 14 most sensitive ecological areas in the world.

NICARAGUA

Scale

Agriculture, in which coffee is the main activity, is the principal source of employment. 270,800 jobs exist in the coffee sector. Total population is 5.2 million.

Income

At a national level shortfalls in foreign exchange earnings caused by the coffee crisis are estimated for 2000/01 – 2002/03 at US$142 million through falls in volume and US$165 million through falls in price. Losses in income tax collected are estimated at US$13.2 million.

Employment

Job losses caused by the crisis are estimated at 122,000.

Social

There has been a substantial increase in rural to urban migration, although there is no demand in the cities for this type of labour. There have been several demonstrations demanding work in coffee areas.

Other effects

Low prices have discouraged care of coffee trees and limited access to credit.

PAPUA NEW GUINEA

Scale

Papua New Guinea has a population of 4.9 million. It is estimated that just over 50% of households depend on coffee for all or part of their income.

Income

During the period of the crisis, from 1998 to 2002 PNG’s GDP fell 3.5% in real terms. In the main smallholder coffee sector the average return per man-day is estimated at US$1.

Employment

There has been a 40% decline in formal employment in the estates sector, which accounts for some 15% of production, between 1998 and 2002. There have also been substantial layoffs in the research and extension services dealing with coffee.

Social

Many smallholders are experiencing difficulties in paying for medicine, bride price, school fees, meat and fish, etc. In the Eastern Highlands 50% of parents have not paid their children’s school fees this year.

Other effects

The Government of PNG has conveyed that the coffee crisis has increased poverty, slowed down economic growth, curtailed employment prospects and has had a negative impact on the balance of payments.

PHILIPPINES

Income

With production costs at roughly US$300 per ha. and revenue from coffee per ha. at
US$256 at current prices coffee production is not economic.

Employment

There is stated to be a widespread unemployment problem in coffee areas.

Social

Coffee farmers have become poorer with substandard living conditions. Land owners are
unable to pay taxes and many farms have been abandoned.

Other effects

Quality has suffered from lack of fertilization, improper harvesting and other factors linked to price levels.

VIETNAM

Scale

Coffee is one of the main economic activities in the Central Highlands, particularly in the province of Dak Lak, whose population is around 2 million.

Income

When coffee prices were high, as in the mid-1990s, 1kg of coffee could be exchanged for 5kg of rice. This had dropped to 1 for 1 in 2002.

Social

A March 2002 survey showed that 45% of coffee-growing families lack adequate nourishing food, and 66% have bank debts. Many children from medium to poor households have left school in view of the costs involved.

TEXT OF LETTER SENT BY THE EXECUTIVE DIRECTOR OF THE ICO - MR. NESTOR OSORIO - TO REPRESENTATIVES OF COFFEE PRODUCING COUNTRIES

14 July 2003

In my submission to the G-8 Summit in June 2003 I explained that the current
situation of extremely low levels of coffee prices which has lasted now some three years has led to great social and economic hardship in coffee producing countries.

In order to provide the greatest possible evidence of the effects of the coffee crisis I am writing to ask you to send me a brief description of the impact of the crisis in your country particularly with respect to poverty as well as on the development process.

I am sure you are aware that all United Nations’ Members agreed in September 2000
on a series of millennium development goals setting targets for the reduction of poverty and the improvement of global living standards.

Sadly the evidence I have indicates that the situation of the world coffee market poses a real impediment to attaining these goals. In consequence I believe that additional support for action to deal with the coffee crisis could be mobilized if a clear picture could be presented on its impact on individual producing countries. If you could provide me with an approximately two page summary of the effects of the coffee crisis related to poverty in your country it might be very helpful to secure appropriate support for relevant action.

It would be most helpful if you could reply to this request by 15 August 2003.

Yours sincerely,
(signed) Néstor Osorio
Executive Director

source: www.ico.org