I am an advocate of the Fair Trade system, but am also beginning to see some of its flaws. Dean Cycon of Dean’s Beans makes the good point that the system offers no special rewards for companies that run entirely on the basis of long-term relationships and fair prices. In addition, Geoff makes the good points that the system doesn’t distinguish based on quality, doesn’t distinguish between any above-minimum prices; and that the farmer doesn’t actually see the entire $1.26/$1.41, and may even get a below-subsistence price after certification and producer’s fees.

However, I would like to make two points in favor of certification, even for small quality-sensitive roasters.

First, if you want to reach a larger market than you can communicate with directly - e.g. if you want to sell to socially conscious consumers at Whole Foods - the Fair Trade label is an easily recognized and reliable guarantee that you are paying fair (or at least fairer) prices. If you are operating almost entirely as a roaster-retailer or coffee shop based in a single locality, I would guess that reputation’s enough - but in addition to that I would argue in favor of transparency. Why not publish some sample contracts online for consumers to verify themselves? (This is what the importer Cooperative Coffees does.)

Second, the FLO/TransFair model is not the only one out there. The Fair Trade Federation is a collective of businesses that run based on a shared commitment to fair trade. Admission is by application, dues are based on sales, and the board of directors is made up entirely of member business representatives. In an era when big roasters like Starbucks and Green Mountain have become FLO/TF’s biggest US buyers, the FTF offers a valuable alternative, and signals the commitment to a movement, which is important to many socially conscious consumers. In addition, membership doesn’t require that your suppliers be on the FLO registry, which is becoming a larger and larger problem for producers. A young Fulbright researcher named Jeremy Weber did a lot of research on this and found significant barriers to entry in the FLO system. Drop me an e-mail and I’ll send you his paper.

So, these are my thoughts for the moment. I’m glad there is an open discussion about this and look forward to remaining part of it.

Finally, I encourage all of you to visit my blog: http://fairtradecoffeeinperu.blogspot.com.

Best,
Noah

In any case, it’s v. heartwarming to hear from a coffee guy whose coffee is NOT eligible for fair trade certification, but who supports fair trade nonetheless. Thanks again.

It is very “fair” to charge those who you are out to help, to participate. This is the only way to have a mutual vested interest. Everyone gets something in exchange. There are pro’s and con’s to getting into such a relationship and it’s done by choice not force. It is not for everyone. Fair trade is not always sustainable, for example when market is high…. YOu can ask any green buyer who’s ever bought on contract with out a great relationship and I guarantee when the market price exceeds the contract during/after harvest… some of the coffee that was “contracted” mysteriously dissappears. Ideal relationships is where one offers exactly what the other wants… this includes product, it’s quality, how it’s produced as well as price, payment terms and conditions etc… Fair trade model encompasses many complex senarios, and I think it is generally good. Can it be improved, certainly… . Companies that do this invest tremendous amounts of time, money, and in my opinion risk…. in developing and maintaing these relationships. In a perfect world there would be direct relationships from origin to end consumer and the spirit of fair trade would be exceeded by a long shot. I would personally like to see Fair Trade practices grow exponentially. It would really change the world. This would pave the way for those who are commited to quality to build on this platform. I would like to see growers and roasters/end consumers use this as a commodity baseline to greatly improve on. To pay a fair trade wage with out any quality demand simply encourages deterioration of quality. To pay for quality, demands quality. ON the same note a roaster who pays a premium for quality will do a good job maintaing the quality, where as one who markets social well being and charity, may just burn and bag the coffee as long as they have an audience. We have neighbors in Huehuetenango that are in co-op and sell FT as well as ORG cert neighbors who are beggin us to buy and sell their coffee, because we do care about the quality and we pay for it.

Final thoughts to green LA girl… keep on doing what your doing.
It is in wrestling through these issues, and sometimes putting your foot in your mouth, because you care that help others see the difference between those that are faking it and those that aren’t. You’ll find those who don’t have a leg to stand on in their claims…. won’t have a leg to stand on in the future. Those that do will be rewarded for their genuine commitment.

sincerely,

edwin martinez

I’d like to point out though, that the post you’re referring to is about Starbucks CAFE practices — something I HAVE researched, and something that’s clearly inferior even to the current fair trade certification standards, though much more convenient for Starbucks’ current sourcing practices.

I think my frustration comes from the fact that — while some companies, such as Intelligentsia or Larry’s Beans — may develop better-than-fair trade models, we then get big, less-than-committed companies like Starbucks saying that they’re doing the same thing with their watered down internal programs.

I mention this because I know that, CMH, you’re a spokesperson and advocate for Starbucks’ practices. And while admitting that I was totally wrong to jump to conclusions about Intelligentsia’s Direct Trade, I am increasingly frustrated that the proliferation of indie programs like Direct Trade have the unintended effect of letting big corps get away with crap like CAFE practices.

Siel Says:
May 22nd, 2006 at 2:40 pm
“Lua and hmmm… — Thanks for your thoughtful analyses of Direct Trade and the Cup of Excellence programs in relation to fair trade. Really interesting to look at Direct Trade in conjunction with Starbucks’ CAFE practices — I’ll add a link from that post to Lua’s comment here.

hmmm… — Great point, especially in conjunction with what Mark Inman said about premium wines (quoted in post)!

I think what makes things even more difficult is that there really ARE devoted mission-based companies that really ARE going beyond fair trade certification that’re actually breaking with TFUSA because they feel fair trade certification doesn’t go far enough. Sadly, less-than-devoted companies are then able to point to those, more legitimate concerns, use them as an excuse for not doing fair trade, then develop faux-”better” program like CAFE or Direct Trade…”

Isn’t supporting and promoting misinformation just as bad as posting misinformation? Geoff’s letter is brilliant! He is a shining star in the coffee industry.

If you want to make a real change in the coffee industry, and you honestly feel Fair Trade is the answer, then I would suggest learning as much as you can about ALL aspects of the coffee industry (specialty and commercial). VISIT many different coffee farms of differing sizes and stuctures (FT or not). Learn about the sourcing and processing challenges as well as the retailing and business challenges. Don’t rely on information you are reading or hearing for other FT activists to fuel your actions. Go to the source!

Find out why it is a challenge for some companies to be 100% FT and help the FT system find a solution that works for ALL aspects of the coffee industry. But critizing companies who are improving transparency and their relationships at orgin…critizing companies who are taking responsibility for their own coffee sourcing, because the current FT model does not address the challenges in their supply chains is irresponsible and damaging.

In my mind, Geoff Watts is a true “activist” for the coffee farmers. He is a change agent in the coffee industry, because he knows…lives the business and works toward finding solutions to many complex challenges. Simplifying these issues are dangerous.

Reading frelkins’ comment, one would think that I’m a huge fan of the producer fees charged by FLO — and maybe even that I’m not aware that these fees exist.

And this despite the fact that I’ve written a whole series of posts about the problems with the way fair trade certification is done right now.

To me, it seems that you (frelkins) haven’t bothered to find out what I know or don’t know about fair trade before pronouncing that I “don’t seem to know enough.”

None of us know enough, really. But you seem to’ve taken the fact that I’m a fair trade activist to assume that I’m some sort of lemming following the tune of TFUSA and FLO’s pipe… Contrary to your patronizing assumptions about our naivete, many fair trade activists are unhappy about the producer fees and many other issues surrounding certification.

Sweet of you to call me nice though — I hope that, in the future, you’ll be kind enough to actually read what I have to say before writing about me –