Purchasing fairly-traded coffee can help individual coffee farmers make a decent living for themselves and their families. Fair trade can reduce poverty and help preserve the environment. Yet only a relatively small number of people benefit from this solution. Ultimately, the coffee crisis is a global economic problem. For 25 million coffee farmers and their families, it requires a systemic, policy-based solution.

In light of this, Oxfam America has recommended several ways in which the U.S. government can focus its attention.

Price sustainability. More than any other factor, sustainable, stable pricing at the grower level most directly affects the incomes of small-scale farmers. The effects of a recent improvement in the international price of coffee vary from country to country, but the full benefits of higher prices do not always trickle down to small-scale farmers, particularly those who sell through intermediaries. And the effects of the 2001 crisis are still being felt despite current higher prices.

History shows that higher prices are far from permanent, so it's important that price and price stability are a key component of the U.S. government's response. One way the U.S. government can do this is through the International Coffee Organization (ICO), by advocating for a premium price. Premiums ensure that farmers can cover minimum production costs and help create incentives for social responsibility.

Fair trade certification. While not a panacea for the need for sustainable pricing across the coffee sector, fair trade certification is an important development tool that should be supported by U.S. agencies. Economic sustainability is a part of most sustainability initiatives but none, other than fair trade certification, have mechanisms to guarantee a premium or track its payment and disbursement.

Development Assistance. Many small-scale farmers entered into the coffee crisis shouldering significant debt at above-market rates. Those who survived continue bear the heavy burden of this obligation, and many farmers are at risk of losing their land and lack the pre-harvest money to invest in their crop-all despite higher coffee prices. Support through the U.S. Agency for International Development (USAID) and other organizations for credit and micro-enterprise loans would greatly strengthen small farmers' ability to survive in the long-term.

Technical assistance in quality improvement, marketing and management. Many family farmers who depend on coffee as their main source of income fail to reach their potential because of lack of know-how. Intensive and long-term training programs, as well as working to strengthen existing farmer organizations would help farmers overcome these barriers.

Organization strengthening also would also assist farmer representatives in building political skills in order to influence the policies of their national governments, and help to give small producers more of a voice.

Trade policies. Many other policy suggestions will only be successful if low income countries have the flexibility to develop pro-development economic national policies. Producing country governments need a whole host of measures including tariffs and far protections to create a stable environment for producers. Though coffee is not restricted by import tariffs into the United States, the ability of coffee farmers to diversify into other products-and therefore help sustain their incomes if the price of a commodity drops-is limited by the constraints put on their governments. Fairer trade rules would include reduction of developed nations' hypocritical agricultural policies, including heavy subsidies, closed markets and dumping.

Participation in international debate. International forums to address the coffee crisis do exist, however, small-scale farmers and organizations typically have limited input in the debate, and the governments of coffee-producing countries don't necessarily most well represent the needs of small farmers. In addition to capacity building and technical assistance programs, the U.S. government can support farmer participation in international debate by supporting organizations that bring small farmers together and by insisting that the ICO provide such opportunities.

—Adapted with permission from articles by Oxfam America

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