Travel Reference
In-Depth Information
FAIR TRADE & CAFFEINE DREAMS
More fiercely traded than any global commodity other than oil, black coffee makes up half of Ni-
caragua's exports and is the jittery engine upon which the economy turns. Until 1989 coffee
prices were regulated by the International Coffee Organization (ICO), after a drought in Brazil
doubled prices several years before. But the USA pulled out of the ICO about the same time that
Vietnam and other new producers were beginning to flood the market with beans. By 1999 coffee
prices had dropped from a spike of more than US$3 to only US$0.42 per pound, less than it costs
to produce.
In Nicaragua, small farmers abandoned their land; of Matagalpa's 25 major haciendas, 20 of
them closed, putting 36,000 people out of work. Some went to Costa Rica or other parts of the
country to work; most were stuck here, begging for change by the sides of the road. A union,
Rural Workers Association (ATC) formed, and former coffee workers shut down the highway
four times until the government fell back on an old Sandinista tactic and agreed to give each fam-
ily a plot of land, for which they would need to pay half.
Some farmers, with the help of international organizations, began growing organic coffee. It
was relatively easy to become certified in Nicaragua, as agriculture has never relied on fertilizers
and pesticides (because farmers couldn't afford them). It was expensive, however. No single or-
ganization certifies coffee 'organic' or 'fair trade.' Starbucks, for example, has its own certifica-
tion program, but there are dozens of others, including Rainforest Alliance and Utz Kapeh. A co-
operative of 150 farmers pays around US$2500 per year to be certified, which is still a good deal
considering how much more the coffee earns.
Despite the fact that fair trade basically asks consumers to voluntarily pay extra (who thought
that would work?), it's now the fastest-growing segment of the coffee market. Some 800,000
farmers in 40 countries are working fair-trade plots. In Nicaragua, communities often still work
together as Sandinista-style cooperatives, making group decisions and encouraging women to
participate.
It's not as though these growers are getting fat off fair trade - most make around US$2 per day.
But in a desperately poor region where electricity and running water are luxuries, a better and
more reliable price for their coffee means three meals a day - plus the chance to plan for the fu-
ture.
Activities
Local hiking opportunities abound. The gorgeous boulder fields and red-rock faces of El
Ocote are sensational. You can access the trail from behind El Castillo del Cacao and hike
two to three hours before rejoining the highway to San Ramón at Finca La Praya. It's just
a US$0.50 bus ride back to town.
For more hiking options, pop into nonprofit
Café Girasol
(
2772-6030;
6:30am-10pm)
for detailed leaflets (US$1.30 to US$1.80) ex-
