Regulate and be damned

Indonesia is featured in this issue, and it provides a useful benchmark from which to assess the state of play between trading nations, consumers and suppliers.

International trade has become increasingly regulated, safety and source being prime issues of concern among consumer groups and government regulators.

In the developed world, the demand for products that have been sourced "fairly" and with concern for the environment, is, we are told, increasing. Equally, issues such as pesticide and fertilizer residues and traceability continue to be of real concern to producers, processors and traders as the effects of failing to meet the high standards demanded by importing countries such as Japan, the EU and the US can be significant.

For those of us who seldom, if ever, come closer to a real coffee tree or tea bush than a picture of a smiling leaf or bean gatherer on the wall of a coffee shop or on a pack of tea, the challenges faced by farmers, traders, packers and processors along the value chain are hard to fathom.

In the fields, it is the farmers who are at the sharp end of the industry. What they grow is what, ultimately, will sit on the shelves and in the cups of tea and coffee drinkers worldwide. Exactly what their understanding is of what the end consumer requires is not always clear. Their priority in many cases is simply to earn enough from their crop to survive into the next season, hoping for clement weather and favorable exchange and lending rates to help bolster their chances. True, there exist some "Gentlemen farmers" who farm for the challenge, not the profit, but by and large these are in the minority.

An Indonesian coffee or tea farmer’s range of experience typically extends no further than the nearest market town, with perhaps an occasional visit to a major city. His understanding of the market dynamics of New York trading houses, of the intricacies of importing coffee into Hamburg, or of the consumer trends affecting supplier’s decisions on other continents, or in other countries, is likely to be limited.

What they know is how to grow tea or coffee to the best of their ability, often a learning curve that has survived generations of tea and coffee farmers and producers.

So while one can well understand the absolute necessity for importing countries to ensure that harmful ingredients are absent from the tea and coffee introduced to their markets, and we endorse any program or initiative designed to combat these issues on the farm, it is well to remember that sometimes while the intent of a process, such as the EU’s unilaterally introduced new standard contract, the ECC (European Contract for Coffee) may be unimpeachable, its actual implementation may be problematic and, ultimately, perhaps not in the best interests of everyone.

But that is the nature of international trade these days, and Indonesian coffee farmers are not the only ones having to add to their learning curve to ensure they remain commercially viable.

Glenn Anthony John
Publisher/Editor