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When Ethiopian farmers switched to growing coffee, they faced income challenges due to undervalued beans, emphasizing the need for fair trade to ensure fair wages and alleviate poverty.
When the Ethiopian government encouraged farmers to stop growing corn and other crops and plant coffee instead, it resulted in farmers needing a new source of income when the idea turned out to be a bad one. Instead of becoming very wealthy, the focus on only one crop posed challenges as global markets tended to undervalue their coffee beans, leaving small producers at a disadvantage.
Fair trade is a potential solution to help these farmers receive a fair wage and alleviate poverty in the global production cycle.
Historically, global market swings in coffee prices, such as the collapse in prices due to changes in consumer tastes and new producers entering the market, have led to the creation of initiatives like fair trade to support coffee farmers.
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