crisis (3)

Fresh from the Field: Chiapas

By José Luis Zárate, Coffee Kids International Program DirectorIn mid-October, I visited our partner ICSUR in Chiapas, Mexico. Men and women there are learning to raise chickens and edible mushrooms and to utilize traditional medicine for common illnesses. Their edible mushroom project, which was financed by Coffee Kids in the past, became completely self-sustaining last year. It was great to see how that project has grown and how families have moved onto new projects to diversify income and provide for better health care and food security.4099088828_76e664d6f1_m.jpgFor seven years, ICSUR has collaborated on a number of projects with indigenous communities in the Zoque region. The technical staff at ICSUR does an impressive job of maintaining excitement for the projects while respecting the preferences and priorities of the communities.They have helped them solicit government funding for local infrastructure and technical staff who support and advise on the cultivation of coffee in the region. Their coffee is sold under the name Cooperativa Federación Selva Negra. Some of ICSUR’s most important work in this area has been helping families create alternatives to coffee and bolster economic independence.4098335387_fbc33077cc_m.jpgGiven the global economic crisis, this year has been especially difficult for Selva Negra. The government has stopped offering financial support for technical staff and the fees associated with coffee certification. Besides this, coffee buyers have had to cancel two large coffee contracts and coffee was sold for national consumption instead of for export. Many families suffered a heavy loss.In moments like these, many families not only suffer a loss of income, but also lose motivation to continue farming coffee. The economic woes have convinced many families of the importance of economic diversification and more and more of them are taking advantage of Coffee Kids-supported projects in chicken-raising and traditional medicines.ICSUR is working with the families to reach their goals so that they can continue farming coffee without being completely dependent on it.Read more about ICSUR’s efforts and see photos on our Flickr page.
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Has Kris Mon II finally arrived in Indonesia...??

Firstly I should explain that "Kris Mon" is not an aged Reggae Star from Jamaica, but rather is the Indonesian Idyom for "krisis Monetary" (or I guess 'recession' in English). I was here through Kris Mon I. That was the Asian economic crisis that crippled Southeast Asia from 1997 through until around 2001. It was bad. Many people lost their lives here in Indonesia, and there was a change in government with President Soeharto standing down after 32 years at the helm of this huge country.This time around things could be potentially worse. In 1997 the crisis gripped South Korea, Thailand, Indonesia and the Philippines. Those 4 countries took ov average 5 years to recover back to 1997 levels. The rest of Asia bounced back quicker, thanks mainly to the strength of the economies in Europe and USA. We all know how things are in USA, but until very recently signs of crisis have not been evident in Indonesia.Signs things were changing emerged in October, when the rupiah dropped against the US$ some 30% almost overnight. A few months earlier foreign goods started to have problems entering Indonesia. Ostensibly this was due to changes in import regulations, in reality it mirrored what happened in 1997 with protection of local manufacturers taking precedent over imports.In recent days a few more visable signs have emerged to the eyes of the veteran observer. I went for dinner at the Novotel Bogor, not far from our home. We have been eating here for years and normally Saturday night is BBQ buffet night with a rich selection of beef, Prawns, Shrimp, Red Snapper, Squid and a selection of other goodies. Anyway dinner this time consisted of a selection of choices that numbered on 1 hand. No BBQ. It sounds a small thing, but having lived through 1 economic crisis, I can see the signs of another on the horizon. Novotel is part of one of the worlds largest Hotel Groups, Accor Group. They are based in France and having read a bit about their outlook on the web after the meagre dinner, I guess this is a result of severe belt tightening.Other signs more directly affect our business here. Big corportates such as Citigroup and BHP Billiton have decimated their expatriate numbers almost overnight. There is yet again an exodus of expatriates out of the country.Of course to date the average Indonesian has not noticed a crisis is developing like a Tsunami offshore. Malls are breakneck busy with shoppers, consumer spending is roaring along unchecked. Like what happened in 97 when the crisis hits here I am afraid things could get ugly. It will for sure slow down retail here.
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While consumers in the United States fret over gas prices, a food crisis threatens millions around the world. Coffee Kids staff visited with families in the states of Chiapas and Oaxaca, Mexico and learned about the effects of the international food crisis and how they are confronting the problem.According to women working with Coffee Kids partner organization FomCafé in Oaxaca, they have seen prices for basic products such as corn, oil and rice more than double since October of 2007. The price of many vegetables has increased 50% or more.“Before 2008, families spent about 60% of their income on food, but today families are spending almost all of their income on food. Salaries have not risen, money being sent home is lower, and work is scarce in many rural communities,” said José Luis Zárate, international program director at Coffee Kids. Families in the United States spend about 10% of income on food.Prices for common goods:Cooking Oil (liter), which cost US$1 in October, is now US$2Corn (kilogram), which cost US$0.28 in October, is now US$0.47Rice (kilogram), which cost US$0.70 in October, is now US$22624552545_6584788e45.jpg?v=0Coffee Kids partners, the Association for Research and Training of Southern Mexico (ICSUR) in Chiapas and FomCafé in Oaxaca are working in rural coffee-growing communities to build capacity and reduce reliance on the annual coffee crop, which does not provide enough income for families. Many of their efforts are also helping families deal with the food crisis.Women and men working with ICSUR in Chiapas are learning to raise and sell mushrooms and chickens to diversify their income and bolster family diets. Women working with FomCafé are learning about organic gardening, cultivating food for their families and selling the surplus locally.“Many of the women commented that thanks to these projects they have access to fresh, organic foods for their families, something they couldn’t afford otherwise,” Zárate said. “The same is happening with the women working with ICSUR in Chiapas. Without these productive projects, it would be difficult to afford meat or eggs.”While food security is the major issue families in Mexico are confronting, ICSUR and FomCafé also promote projects in health care, education and economic diversification.Check out photos from our latest visit on our Flickr page.
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