Java Justice: Fair Trade Coffee and Cutting Out the Coyotes

How Does Fair Trade Certification Bring Higher Profits to Small Coffee Farmers

By Jason Cangialosi, published Jun 07, 2006
Published Content: 72  Total Views: 168,768  Favorited By: 25 CPs
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People care about their coffee, it can make or break your day, but drinkers have acquired a taste for the economics in their cup too. Fair Trade Coffee is a serious growth market and it came at a time when the industry was recovering a coffee crisis. Many new coffee labels have started up with the Fair Trade motto and well known brands, like Starbucks™, Seattle’s Best™, Newman’s Own™, Millstone™, Diedrich Coffee™, Peet’s Coffee Co.™ and Costco's Kirkland SIgnature Brand™  have joined a growing list. Dunkin Donuts™ even hopped on the bandwagon with a Fair Trade Certified Espresso, as did McDonalds™ in selected stores throughout Northeast America.

Just about every grocery store, superstore and coffee shop carries at least one Fair Trade brand. The TransFair USA certification also reaches teas, cocoa, fruit, rice and sugar, all major exports from the Global South, but Coffee certification has seen the widest success by far. Fair Trade Coffee is progressing from the Specialty Coffee category to being a standard in some households and stores. 

A past article of mine on AC about Fair Trade generated the same curiosity I see in coffee shops when someone says “Fair Trade.” One reader asked how exactly does cutting the middleman out of the supply chain provide coffee farmers more income through fair trade? The trade route of coffee, the 2nd most exchanged commodity on the planet, has always been a fascinating ride from Bean to Cup. There are all sorts of characters along the way from hard working farmers, coffee cuppers sipping hundreds of blends a day to eccentric roasters and café owners. The Fair Trade labeling phenomenon and the people at TransFair and the Fairtrade Labeling Organization add another dimension in this business of java justice. 

Java Justice: Fair Trade Coffee and Cutting Out the Coyotes

Look for this official Fair Trade Logo on the labels of Coffee and other goods. www.transfairusa.org

Credit: TransFair USA

Copyright: TransFair USA

Takeaways
  • Fair Trade Coffee is progressing from the Specialty Coffee category to being a standard.
  • TransFair USA has built an international monitoring system that ensures fairness for farmers
  • Ethical consumers opened their hearts and wallets and the Fair Trade movement went gangbusters.
Did You Know?
As of 2006, 221 cooperatives of over 800,000 farmers have been certified Fair Trade to sell coffee.
Resources
  • > TransFair USA> Equal Exchange > The Crop to Cup Chart showing Fair Trade Distribution System. (Requires PDF Reader)
Comments
Showing Comments 1 - 4 of 4
 
 
...a sense you are trying to squeeze larger economic factors into a constrained statement. (I don't personally know Rochelle, but someone named Rochelle made some comments on my last piece as well.)

Posted on 06/20/2006 at 7:06:00 PM

 
Its a common reaction to Fair-Trade goods to just see it as an empty label falling short on the higher promises made, but I do not see where your position is coming from Phil. Offering higher prices to farmer co-ops does not detract profits from other, disadvantaged farmers. The point is that all farmers needed the help and those best positioned to form co-ops could raise the standards, that eventually would, and did, create a demand for the product. The price per pound of the quality coffee is actually not higher, that is just the assumption made when the price is compared to low grade, cheap, ground coffee, compared to other organic or high grade beans its fairly competitive. Unless you have a documented example of farmers from a particular region that lose out to Fair-Trade farmers, I don't see a solid foundation to an argument. On the other hand the many cases promoted by the FLO give substantial evidence of the positive effects of the labeling. Hopefully you can respond, as I get

Posted on 06/20/2006 at 7:06:00 PM

 
It seems to me that Fairtrade does not benefit those coffe producers who are poorest and need the most help. All it is is a label which certain retailers are licensed to display on their products. The label increases the sales of that product by appealing to consumers who have a concern for poverty and enough money to afford the increased prices. Unfortunately, only those producers who are already earning a decent wage conform to Fairtrade standards and therefore qualify for a Fairtrade label. Those producers who don't earn a decent wage do not qualify, and do not benefit from Fairtrade; the very people who need help most do not benefit! In fact Fairtrade actually damages their income since it reduces their market share by attracting customers towards the Fairtrade label and away from non-Fairtrade labels. The demand for their products lowers so the price must follow. Ps do you and Rochelle know each other or something?

Posted on 06/20/2006 at 5:06:00 PM

 
Very interesting to me Jason although I wasn't the one who asked the question.

Posted on 06/07/2006 at 10:06:00 PM

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