Coffee giant's ruse denies aid to farmers

[dArKeR]

One of the world's largest coffee traders, which supplies beans to Nescafé and Maxwell House, is accused of using a British tax haven to avoid paying millions of pounds to the developing countries from which it buys.

Campaign groups and charities have accused Volcafe -- which provides the beans for one in every seven cups of coffee drunk -- of employing financial tricks to deprive some of the poorest parts of the world of much-needed revenue. The company denies any wrongdoing, but British MPs are calling for an investigation.

Alex Wijeratna, of the development agency Action Aid, said: "Coffee farmers we work with in Latin America hardly make ends meet and tax revenues are vital to improving local roads, schools and training schemes. If corporations won't act responsibly, we urgently need tougher laws."

British newspaper The Observer has uncovered confidential documents in Switzerland detailing how a "ghost" company in Jersey is used to shield profits.

http://www.mg.co.za/Content/l3.asp?ao=67797

Keep reading and look at the country 'hit list'.

[struggle4progress]

1. An important aspect of "free trade"

:kick:

[gottaB]

2. Fair Trade Coffee

I've been using only fair trade shade-grown certified organic beans for years. It can cost a little more, but once you taste organic you won't want anything else.

http://www.transfairusa.org/do/whereToBuy

http://www.fairtradefederation.com/memcof.html

Most coops carry fair trade coffees, and many supermarkets too.

What Volcafe is alleged to have done, on top of runofthemill exploitation, that's like robbing third world countries of their hopes for the future.

[Judi Lynn]

3. Unacceptable. They dare to pretend they're not making tons

of money at this.

If they can't handle their business honorably, you'd think the tendency would be to shove off and let someone righteous sort it out and allow the exploited people to benefit just a tiny bit.

Greed is not attractive, nor admirable. They are monsters.

[Neecy]

7. from the most recent Oxfam study...

Comes this shocking fact:

"Coffee farmers are getting, on average, 24 cents a pound while consumers in rich countries are paying roughly $3.60 a pound – a mark-up of 1500%. Coffee now costs more to grow and pick than it does to sell."

They make obscene profits, and STILL have to screw the countries whose slave and child labor (and that's exactly what it is) produces the raw material for their wealth.

http://www.oxfam.org/eng/pr020918_coffee.htm

[histohoney]

4. How can you

get a good nights sleep when you do things like this to the poorest people.

[Eloriel]

6. It's easy

They convince themselves that this is how they're supposed to be: that maximizing profits (no matter what, obviously) is exactly what their job is, their highest and best calling.

[HuckleB]

5. What's more, Nescafe is just about all you can buy in parts of Latin Am.

It's very difficult to find Fair Trade coffee in many parts of South America. Heck, it's difficult to find decent coffee there, outside of the airports. Nescafe and Maxwell House are made from cheap Robusta beans, which means they are aimed at the "lower end" market. Thus, those who would benefit from better trade practices are also stuck in a situation of boycotting the coffee they or their neighbors grow altogether or buying the products from companies performing shitty trade practices. It's just an ugly, vicious circle.