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Fair Trade Coffee

Fair Trade Coffee. 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

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Fair Trade Coffee

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  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

  3. 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

  4. 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 supply=low $) • By 2000, Fair Trade Coffee had become the fastest growing aspect of the coffee industry

  5. 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.

  6. 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

  7. 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

  8. 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/

  9. 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/agriculture/coffee

  10. 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.htm • http://www.globalexchange.org/fairtrade/coffee/cooperatives • http://www.justuscoffee.com/ • http://www.starbucks.com/responsibility/sourcing/coffee

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