Fair Trade Coffee in Nicaragua

Nicaragua is the second-poorest country in the hemisphere, and its national economy is uniquely dependent on coffee. So when world coffee prices began a period of steep decline in 1999, Nicaragua was vulnerable. By 2001, when prices had fallen to their lowest levels in a century, the social and economic effects of what came to be known simply as "the coffee crisis" were devastating. Indices of poverty, hunger and illness soared, and many families wrestled with the difficult decision to leave their farms in search of work.

CRS responded to the fallout from the coffee crisis with a short-term emergency relief program that helped 5,000 families in nearly 60 coffee-growing communities in northern Nicaragua meet their dietary needs and avoid abandoning the coffee farms to which they had dedicated their lives.  While this intervention was necessary in the short term to save lives, CRS staff in Nicaragua knew that the small-scale coffee farmers affected by the crisis needed a long-term strategy to empower them compete effectively in the international coffee market.

In 2003, CRS and its partners in Nicaragua launched a multi-year coffee initiative with support from U.S. AID that revolves around five core areas of activity: organizational development, coffee quality, sustainable agriculture, diversification, and market linkages.

Organizational Development

CRS staff and partners in Nicaragua have helped hundreds of farmers organize themselves into cooperatives that are legally recognized by the Nicaraguan Ministry of Labor.  Forming cooperatives is a prerequisite for participation in the Fair Trade coffee market, but it also offers a range of other benefits for farmers and their communities.  When farmers organize themselves into cooperatives, they achieve greater economies of scale, enjoy more leverage in negotiating fair prices for their coffee, and—perhaps most importantly—they begin to address issues of concern to the broader communities in which they live.  Fair Trade coffee cooperatives in Nicaragua and elsewhere have invested proceeds from their coffee sales in water wells, health clinics, schools, roads and other social infrastructure with broad social benefit. 

Coffee Quality

In order for farmers to compete effectively in the competitive global coffee market, they need to understand everything that goes into producing a great cup of coffee—from the way coffee is planted and fertilized to the way it is picked and fermented.

In Nicaragua, technical experts from CRS and its partner organizations have invested heavily in helping the farmers we serve there to produce export—quality coffee.  They have built or repaired hundreds of on-farm coffee processing facilities.  They have spent countless hours helping farmers adopt appropriate coffee harvesting and processing techniques. They have constructed coffee cupping labs and trained farmers in cupping basics).  One special CRS ally — Dr. Sue Jackels of Seattle University — has even created an appropriate—technology chemistry kit designed to help farmers achieve optimal levels of pH during the all—important coffee fermentation process!  By 2007, the cooperatives that CRS supports have produced specialty-grade coffee for three years running, and have put into place the systems necessary to continue to improve coffee quality into the future.

Sustainable Agriculture

Under the supervision of an organic certification agency in Nicaragua, CRS and its partners have helped hundreds of coffee farmers abandon chemical-intensive processes in favor of certified organic farming, while also promoting shade-grown coffee and other sustainable farming techniques.  Sustainable, organic coffee farming protects existing forests, preserves the natural diversity of plant and animal life dependent on the forest canopy, improves the health of farmers and the land they depend on for their livelihood and generates more income for farmers.

Diversification

While CRS and its partners work hard to help farmers grow world-class coffee, this work takes place in the broader context of ongoing efforts to promote food security and sustainable development.  By helping farmers to convert some of their coffee fields to other crops, CRS and its partners are diversifying the sources of farm income, insulating farmers more effectively from shocks to the international coffee market, and ensuring family food security.

Market Linkages

Finally, CRS has worked to connect the coffee farmers it serves in Nicaragua with the coffee companies it partners with in the United States.  In 2007, CRS-supported cooperatives in Nicaragua sold some 20 tons of certified organic, Fair Trade Certified coffee to companies that participate in the CRS Fair Trade Coffee Program—the third consecutive year this connection has been made.

To purchase coffee grown by CRS-supported cooperatives in Nicaragua, visit the CRS Coffee Map and look for the "n." logo to find roasters that carry it.