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Gavin Fridell - Coffee

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Gavin Fridell Coffee
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In a world of high finance, unprecedented technological change, and cyber billionaires, it is easy to forget that a major source of global wealth is, literally, right under our noses. Coffee is one of the most valuable Southern exports, generating billions of dollars in corporate profits each year, even while the majority of the worlds 25 million coffee families live in relative poverty. But who is responsible for such vast inequality? Many analysts point to the coffee market itself, its price volatility and corporate oligarchy, and seek to correct it through fair trade, organic and sustainable coffee, corporate social responsibility, and a number of market-driven projects. The result has been widespread acceptance that the market is both the cause of underdevelopment and its potential solution. Against this consensus, Gavin Fridell provocatively argues that state action, both good and bad, has been and continues to be central to the everyday operations of the coffee industry, even in todays world of free trade. Combining rich history with an incisive analysis of key factors shaping the coffee business, Fridell challenges the notion that injustice in the industry can be solved one sip at a time -- as ethical trade promoters put it. Instead, he points to the centrality of coffee statecraft both for preserving the status quo and for initiating meaningful changes to the coffee industry in the future--Provided by publisher. Read more...
Abstract: In a world of high finance, unprecedented technological change, and cyber billionaires, it is easy to forget that a major source of global wealth is, literally, right under our noses. Read more...

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Coffee

Resources Series

Gavin Bridge & Philippe Le Billon, Oil

Jennifer Clapp, Food

Peter Dauvergne & Jane Lister, Timber

Elizabeth R. DeSombre & J. Samuel Barkin, Fish

David Lewis Feldman, Water

Derek Hall, Land

Michael Nest, Coltan

Ian Smillie, Diamonds

Copyright Gavin Fridell 2014
The right of Gavin Fridell to be identified as Author of this Work has been asserted in accordance with the UK Copyright, Designs and Patents Act 1988.
First published in 2014 by Polity Press
Polity Press
65 Bridge Street
Cambridge CB2 1UR, UK
Polity Press
350 Main Street
Malden, MA 02148, USA
All rights reserved. Except for the quotation of short passages for the purpose of criticism and review, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher.
ISBN-13: 978-0-7456-8590-8
A catalogue record for this book is available from the British Library.
The publisher has used its best endeavours to ensure that the URLs for external websites referred to in this book are correct and active at the time of going to press. However, the publisher has no responsibility for the websites and can make no guarantee that a site will remain live or that the content is or will remain appropriate.
Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked the publisher will be pleased to include any necessary credits in any subsequent reprint or edition.
For further information on Polity, visit our website: www.politybooks.com

For Sasha, Sebastian, and Kate

Contents
Abbreviations
ABICBrazilian Coffee Roasters Association (Associao Brasileira da Indstria de Caf)
ACPCAssociation of Coffee-Producing Countries
BRICSBrazil, Russia, India, China, and South Africa (group of states)
CAFECoffee and Farmer Equity program (Starbucks Coffee Company)
CAW 3000Canadian Auto Workers, Local 3000
CLACLatin American and Caribbean Network of Small Fair Trade Producers (Coordinadora Latinoamericana y del Caribe de Pequeos Productores de Comercio Justo)
CSRcorporate social responsibility
DWSRDollarWall Street Regime
ECXEthiopian Commodity Exchange
EIPOEthiopian Intellectual Property Office
FAOFood and Agriculture Organization of the United Nations
FLOFairtrade International
FNCNational Federation of Coffee Farmers (Federacin Nacional de Cafeteros), Colombia
FOBfree on board
FundeppoFoundation of Organized Small Producers (Fundacin de Pequeos Productores Organizados)
GLOBALG.A.P.Global Good Agricultural Practices
IACAInter-American Coffee Agreement
IACOInter-African Coffee Organization
ICAInternational Coffee Agreement
ICOInternational Coffee Organization
IISDInternational Institute for Trade and Development
NCANational Coffee Association (United States of America)
NEZNew Economic Zone (Vietnam)
ODIOverseas Development Institute
PSDSocial Democratic Party (Partido Social Demcrata, Costa Rica)
SOEstate-owned enterprise
SPSSmall Producers Symbol
TNCtransnational corporation
UN ComtradeUnited Nations Commodity Trade Statistics
UNCTADUnited Nations Conference on Trade and Development
UNDPUnited Nations Development Programme
VBARDVietnamese Bank of Agriculture and Rural Development
VBSPVietnam Bank for Social Policy
VinacafeVietnam Coffee Corporation
WITSWorld Integrated Trade Solution
WTOWorld Trade Organization
Figures
Acknowledgments

The author would like to thank many colleagues and friends for their advice, inspiration, and support over the years, including Haroon Akram-Lodhi, Greg Albo, Bill Barrett, David Friesen, Ilan Kapoor, David McNally, Viviana Patroni, Darryl Reed, John Talbot, Steven Topik, and Tony Winson. Very special thanks are due Mark Gabbert, Martijn Konings, and Liisa North for our many lengthy chats related to coffee and beyond. An immeasurable debt is owed to all of those who agreed to take time from their busy lives to be interviewed over the years and facilitate my current and earlier research on coffee and commodities in Mexico, the Caribbean, Canada, and Europe. Christina Sayers and Amr El-Alfy were excellent graduate research assistants and Jenny Kaulback and Cassie MacDonald offered invaluable administrative support. Louise Knight and Pascal Porcheron from Polity Press, as well as the anonymous reviewers, provided superb guidance in improving the work and seeing it through. The author is indebted to the International Coffee Organization (ICO) for permitting him the unique opportunity to observe its annual meeting in London, England, in March 2013. Financial and institutional support from the Social Sciences and Humanities Research Council of Canada, the Canada Research Chair program, and Saint Marys University is gratefully acknowledged.

Above all, I would like to thank my family, in particular my espresso club, Sebastian and Sasha, who have infused more energy into the house than any number of coffees could possibly accomplish, and Kate Ervine, as always my unwavering ally in life, without whose guidance and knowledge this book could not have been written. Any errors or omissions, of course, are entirely the authors own.

CHAPTER ONE
The global market and coffee statecraft

Following the global coffee market is a daunting task for any researcher, not least because of the dramatic ups and downs of coffee prices. When I began my graduate studies as a masters student in 1996, coffee prices were in the middle of a five-year recovery after a previous four-year collapse. The coffee composite indicator price, a commonly used estimate that combines different quality beans with different prices, dropped to extreme lows from 1990 to 1993, reaching as low as 54 cents per pound, only to recover starting in 1994, eventually reaching as high as $1.38 per pound. When I started my doctoral work in 1998, the mini-boom had already ended, with prices collapsing once again, this time to the lowest seen in 30 years and by some estimates the lowest prices in real value

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