Fair Trade Coffee:Behind the Label

Lisa Kolf

Coffee is the second most widely traded

commodity in the world, after oil. (Abad-Vergara)

54% of U.S. (161 million) drink at least 1 cup of coffee per day. (Haight)

Why it Matters

Where does it come from? Who

produces it? Is Fair Trade the answer?

Why it Matters

Fair Trade was a movement established to

certify that third-world farmers are paid fair wages.

There is evidence that the Fair Trade model does not give poor workers all of the benefits it promises.

Fair Trade is a broad topic, so I’ll stick to Fair Trade coffee.

The Controversy

“Fair Trade USA enables sustainable

development and community empowerment by is cultivating a more equitable global trade model that benefits farmers, workers, consumers, industry and the earth. We achieve our mission by certifying and promoting Fair Trade products.” (“About Fair Trade USA”)

What is Fair Trade?

Supply and demand create rising and falling

coffee prices. Sometimes the value of coffee plummets so

that farmers don’t make enough money to cover costs of production, labor, and living.

Fair Trade certified farms are guaranteed to receive a minimum price for their coffee even when the market value for coffee plummets.

Consumers cover costs.

Why is Fair Trade Coffee Needed?

Much of the premium we pay doesn’t go to

poor laborers Bureaocracy and expenses that come with Fair

Trade certification.

The Controversy

An Expensive Process

-(“Certification Manual” page 8)

In Central and South America, many rural

farmers speak indigenous languages other than Spanish, and cannot complete the paperwork and record-keeping

Small farms must belong to “democratically-elected cooperatives.”

Environmental standards are expensive to meet for small farmers because they may require relocation and large investments in new farming practices. (Haight)

Strict Standards

Be conscious consumers Research “fair trade” brands that may use as

little as 10% Fair Trade ingredients CaféDirect is 100% Fair Trade and even better Despite flaws and limitations, Fair Trade does

a lot of good due to community development premiums and protection from market fluctuations.

What we can do:

Fair Trade fulfills the need of protecting

farmers from market fluctuations, providing a minimum wage and community development premium.

The Fair Trade certification process can be difficult for small farms to qualify for because it requires a large investment.

Brands with direct involvement in communities such as CaféDirect

Conclusion

We as consumers have the power

to bring about social justice by researching before we buy.

The Good News

Abad-Vergara, Diane. "Living with Coffee." Thesis.

Auckland University of Technology, 2011. Web. 7 Mar. 2014. <http://www.youtube.com/watch?v=BwYl69VstPw>.

"About Fair Trade USA." Fairtradeusa.org. Fair Trade USA, n.d. Web. 07 Mar. 2014. <http://fairtradeusa.org/about-fair-trade-usa/mission>.

"Certification Manual." Fairtradeusa.org. Fair Trade USA, Aug. 2012. Web. 8 Mar. 2014. <http://fairtradeusa.org/sites/all/files/wysiwyg/filemanager/standards/FTUSA_MAN_CertificationManual.pdf>.

Works Cited

Haight, Colleen. "Is Fair Trade Fair? Evidence from

Central America." Lecture. SWEET (Students Who Enjoy Economic Thinking) at University of Alaska Fairbanks, 15 Feb. 2009. Web. 7 Mar. 2014. <http://www.youtube.com/watch?v=ieCew0B-9OQ>.

Purvis, Andrew. "Fairer than Fairtrade." Theguardian.com. Guardian News and Media, 23 June 2008. Web. 8 Mar. 2014. <http://www.theguardian.com/lifeandstyle/wordofmouth/2008/jun/23/fairerthanfairtrade>.

Works Cited (continued)