A. This process alone adds at least 50% to its price.
B. Here, coffee production is the staple crop for many millions of growers.
C. The only bit controlled in the Fairtrade system is the price a farmer is paid for produce.
A. This process alone adds at least 50% to its price. B. Here, coffee production is the staple crop for many millions of growers. C. The only bit controlled in the Fairtrade system is the price a farmer is paid for produce. D. Coffee is the second most traded commodity in the world after oil. E. It guarantees to pay growers a fixed proportion for their coffee, which is above standard market rates. F. Local council taxes add another £25,000 to that.
A. This process alone adds at least 50% to its price.
B. Here, coffee production is the staple crop for many millions of growers.
C. The only bit controlled in the Fairtrade system is the price a farmer is paid for produce.
- coffee grown - coffee picked - coffee transported - coffee packed
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- coffee sold and shipped - coffee sold on to shops - coffee bought and drunk
2 . Write in the correct letter, A-F, for the missing sentences to complete the text. There is one extra sentence.
However, irrespective of how much we end up paying or the reasons why, the reality is that growers themselves see only a tiny proportion of that amount. Organizations like Fairtrade do try to make a difference. (4)___________. For example, a farmer selling a pound of Fairtrade Arabica coffee is paid $1.26 compared to the world market price of $1.10 a pound. The Fairtrade price also includes 5¢ which is invested back into community projects. Many shops and coffee bars do now offer Fairtrade coffee to customers alongside their standard offering, but not all of that inflated price goes to the grower. (5)_________. After that, mark-ups are determined by the retailers and middlemen. That said, at least Fairtrade is one small step that does help farmers around the world get a better price for their products.
EXPORTS
10% = OTHER
Only (1)_10_p__(_p_e_n_ce_)_ goes to the grower.
£3
90% = (7c)_o_f_f_e_e
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Key facts: Ethiopia (2)___1_5________ million people in coffee trade (3)___5_0________% of GDP (4)___5_0________ pence = a laborer’s pay per day
Module 11
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11.1 Ethical economics
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1
Reading: Coffeenomics
2 Vocabulary: Financial and
trade terms
3 Speaking: The economics of
your country
4
Grammar: Articles
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the coffee trade, which constitutes around 50% of the country’s gross domestic product (GDP) and 90% of its exports. The average wage paid to laborers who pick the beans and work on farms is about 50p a day.
Coffeenomics: the true cost of our caffeine addiction
The next time you hand over £3 for your deluxe cappuccino, ask yourself how much the roasted beans that went into that cup really cost. For your average cup of coffee, the producer receives roughly 10p – that’s about 3.5%. This disparity is causing increasing concern among some charities who believe that the excessive profits of coffee shop chains come at the expense of vulnerable coffee producers in countries like Ethiopia, Kenya or Latin America. (1)___________. For example, in Ethiopia alone, 15 million people depend on
D. Coffee is the second most traded commodity in the world after oil.
E. It guarantees to pay growers a fixed proportion for their coffee, which is above standard market rates.
5
Listening: Fairtrade
6 Speaking: Giving reasons
and benefits
1. The two photos below show the beginning and the end of the process of making coffee. Work in pairs. How many stages can you think of in between to complete the process?
F. Local council taxes add another £25,000 to that.
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3. These four visual aids refer to the economics of the coffee trade. Read the article above and write in the missing facts and figures in these visual aids.
F. Local council taxes add another £25,000 to that.
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of 50,000 coffees a year, or 200 coffees a day. Factor in these additional costs and we are probably talking about a break-even total of 400 coffees a day.
Coffee Shop Outgoings Salaries £115,)_s_e_rv_i_c_e_c_h_a_r_g_e_ £20,000 Overheads £80,500
D. Coffee is the second most traded commodity in the world after oil.
E. It guarantees to pay growers a fixed proportion for their coffee, which is above standard market rates.