October 23, 2006

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World Famous Chiapan Coffee Growers Struggle to Sell Their Beans at Home

By Rosario Adriana Alcázar González

As afternoon falls on in the city of San Cristóbal de Las Casas in Chiapas, the sun's rays disappear behind the mountains and the air grows cold. Across the city, hands reach for cups of dark, hot coffee, grown in Chiapas.

Coffee lovers all over the world enjoy the popular organic Chiapan coffee thanks to the efforts of Chiapaneco coffee growers who have banded together to market their products abroad over the last twenty years. However, many growers say Mexican consumers still don't recognize the differences between organic and conventional production. As a result much of Mexico's internal coffee market is monopolized by multinational corporations like Nestle.

World Famous Chiapas Coffee Growers Struggle to Sell Their Beans at Home

The organic coffee the Chiapas is known for came about after a coffee surplus prompted a worldwide crisis for producers in the 1980s. Prices dropped drastically - in Mexico growers received only six pesos (.60 USD) per kilo. Devastated, coffee producers began to look for new ways to produce and market their products in order to survive.

In Chiapas, many went back to their roots and rediscovered organic production. By transitioning to organic, Mexican coffee growers were able to tap into international markets with a high demand for natural products and consumers ready to pay more for organic coffee. For producers, this transition meant returning to ancestral ways of cultivating. “An old man in one of the communities told us that organic, which now seemed something very new, was really a return to how their grandparents grew coffee before chemical products existed,” said Víctor Perezgrovas, adviser to Majomut, an organic coffee  grower’s union made of 17,000 indigenous families from the Chiapan highlands.

Until 2005, Mexico was the largest producer of organic coffee in the world, according to Mexico's Secretary of Agriculture, Livestock, Rural Development, Fishing and Feeding in Mexico data. The states of Chiapas, Veracruz, and Oaxaca produce 85 percent of the nation's coffee. But this year, due to the destruction caused by Hurricane Stan in the Soconusco and Sierra regions of Chiapas, Mexico fell to second place in organic coffee production, displaced by Peru.

Though natural disasters can wreak havoc on coffee economies, Majomut´s growers can count on one thing -- a guaranteed minimum price for their products. While regional producers earned ten to twelve pesos per kilo on average, Majomut's producers earned between 18 and 20 pesos per kilo, said Perezgrovas.

Majomut has found success in international markets; it exports 80 percent of its production to Europe. But selling their products in Mexico has been more difficult. Majomut currently sells only 20 percent of their coffee within the country. "The internal market is difficult," said Perezgrovas, "because it is dominated by Nestle, which, with it subsidiaries, controls 80 percent of Mexico's coffee market. It´s hard for small cooperatives to compete against such a giant."

"[Ours is] a special product, because the producer makes an effort to produce a product using environmentally sound techniques that benefit everyone. Many times the consumer 'rsquo;t value the work that producers take on in order to conserve the environment," said Rolando Morales, member of organic coffee cooperative Lagos de Colores, based in Tziscao, municipality of La Trinitaria, on the Guatemalan border. His cooperative exports 70 percent of their product to the United States, Japan, and Europe.

Even if they recognize the benefits of organic coffee, many Mexicans simply can't afford to buy it. A kilo of organic coffee can cost twice as much as a kilo of conventional coffee, which places it out of the reach of many national consumers in a country, where according to 2002 World Bank Statistics, half of the population lives in poverty. "In some places, a kilo of organic coffee can reach up to $190.00 pesos. That's a lot of money. Only foreigners can afford it. Even when I want to, I can't buy it," said Mauricio Arellano, leaving a café in the center of San Cristóbal.


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