To celebrate the launch of Panama Palo Alto coffee in Taiwan the Central America Trade Office held a ceremony in Tianmu. The ceremony began with dance performances by a Panamanian troupe, which attracted immediate attention from onlookers.

At the ceremony James Hsin-hua Wu, the deputy director general of the Bureau of Foreign Trade Ministry of Economic Affairs, gave credit to the Panama-Taiwan Free Trade Agreement (FTA) for making the importation of Palo Alto coffee possible. Because of the agreement, Panama is able to export its products to Taiwan with little or no taxation, thereby enabling the product to compete internationally with coffee products from the rest of the world. Currently Taiwan is exporting US$69.28 million worth of goods to Panama, and importing Panamanian commodities worth US$6.5 million. Perhaps not a huge amount by international standards, but it makes a big difference to the profits and living standards of the coffee growers, as well as Panama's economic growth.

Wu Chin-mu of the Ministry of Foreign Affairs stressed that Panama and Taiwan have a history of close diplomatic ties. He hoped that Taiwan and Panama will mutually benefit through trade. In view of the rising popularity of coffee in Taiwan, Wu believes that the importation of Panamanian coffee will not only satisfy the island's demand but also raise awareness of Latin American culture.

Starbucks and Oxfam to bring trade and development to Ethiopia
In a pilot venture, Starbucks UK will contribute £100,000 to Oxfam's rural development programme in Ethiopia's East Hararge region, assisting farmers battling poverty and drought in their efforts to produce high-quality Arabica coffee. (Ethiopia is the reputed birthplace of coffee). The money will be spent on improving irrigation, providing seeds and tools, and running women's literacy programmes. Starbucks experts will also offer advice on improving coffee yields and quality, and on strengthening the growers' marketing co-operative.

Panama is able to export coffee to Taiwan with little or no taxation, so it can compete internationally with the rest of the world.

Oxfam deemed Starbucks a suitable collaborator because Starbucks has already developed long-term producer contracts and put in place purchasing guidelines that stipulate quality controls. Moreover, the company has inacted social and environmental standards that farmers must meet in return for better contract terms. The company pays an average of $1.20 a pound, about double the market price of commodity coffee, for the high-quality Arabica beans.

Oxfam says the the development programme with Starbucks in a key coffee-growing region "may provide it with an advantage". Starbucks says the Harrar coffee produced in this part of eastern Ethiopia is "fantastic", but supplies are erratic. "When it's there, we buy it."

As this project progresses, Oxfam will monitor improvements. For example, the non-profit development group will gauge increases in women's participation in civil society. Better sustained and higher-quality coffee production, in conjunction with providing growers with higher profits, will also indicate progress. Starbucks is already involved in two projects in Ethiopia, funding a water project in Bensa Ware and Daye High School in the Sidamo region of southern Ethiopia.






Contributed by Paul Staines, senior editor at Global-growth.org. Reprinted with permission from aWorldConnected.

To read another Global Envision article about agricultural issues, see Using Business and the Market to Create Incentives for Environmental Change.