Fair Trade Coffee

1
Fair Trade Coffee
2
Purpose

• To assist coffee farmers in getting a fair price
  for the coffee they grow.
• Guaranteed payment of 1.26/pound to growers
• If the international price rises above this,
  growers will be paid extra
• To offer protection to farmers in times of
  hardship
• Provide credit to farmers so they can rely less
  on loans from middlemen
• Develop direct long-term relationships between
  fair-trade distributors importers/roasters

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Structure

• Packers in Developed countries pay the Fair Trade
  Organization for the right to use the label on
  their products
• Coffee must be purchased from registered Fair
  Trade exporters
• These exporters must adhere to certain standards
  required by the Fair Trade Organization

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History

• Post WWII, the idea of Fair Trade emerged as a
  way to assist sellers in Third World markets
  get a fair price for their goods
  internationally.
• In 1988 Fair Trade was applied to coffee because
  of a crisis. (high supplylow )
• By 2000, Fair Trade Coffee had become the fastest
  growing aspect of the coffee industry

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Growth Success

• With the success of Fair Trade Coffee, the market
  expanded to include bananas, tea, sugar, vanilla
  and rice by 2005.
• By 2007, sales of Fair Trade products in the USA
  reach 1 billion.
• Major businesses such as Dunkin' Dounts,
  McDonands and Starbucks offer some fair trade
  products.

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Criticism

• Many companies are using the Fair Trade label to
  improve their image, but not really changing.
• 2008 Starbucks uses only 5 Fair Trade Coffee
• Fair Trade is costly for farmers as they need to
  adhere to certain principles
• Organic -Hire workers and pay them fairly
• The popularity of the Fair Trade market hurts the
  poorest farmers who cannot adhere to these
  standards

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Not all Fair Trade Products are Equal

• Every growing situation is unique so it is
  difficult to compare fair trade practices
• Different farmers -Different land
• Different countries (governments, tariffs)
• Different communities needs
• Some Co-ops prefer to use their for community
  development, while others for personal finances
• Therefore it is important for the consumer to not
  just assume all Fair Trade labeled products are
  better

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Fair Trade Done Right!

• JustUs! Coffee
• 1st Fair Trade organization in North America
  (1997)
• Started in 1995, established a co-op with Mexico
• Began as a small roaster in Nova Scotia
• Won multiple awards in Canada for quality as well
  as social justice. (May 2012- Canada's Best Fair
  Trade Product)
• http//www.justuscoffee.com/

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Alternatives

• Thrive Coffee Farmers roasting and packaging
  their own coffees
• http//www.thrivefarmers.com/Rainforest
  Certified Eco-friendly approach, focus on
  sustainability for farmers and crops
• http//www.rainforest-alliance.org/work/agricultur
  e/coffee

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Sources

• Pedregal, Virginie DiazOzcaglar-Toulouse, Nil.
  "Why Does Not Everybody Purchase Fair Trade
  Products? The Question Of The Fairness Of Fair
  Trade Products' Consumption For Consumers1."
  International Journal Of Consumer Studies 35.6
  (2011) 655. Advanced Placement Source. Web. 17
  Nov. 2012
• http//www.fairtradeusa.org/
• http//fairtrade.ca/en
• https//en.wikipedia.org/wiki/Fair_trade_coffee
• http//www.coffeeresearch.org/politics/fairtrade.h
  tm
• http//www.globalexchange.org/fairtrade/coffee/coo
  peratives
• http//www.justuscoffee.com/
• http//www.starbucks.com/responsibility/sourcing/c
  offee