February 14, 2007

coffee - fair trade or sustainable farming?

We had an awesome evening with friends this past Sunday. During the evening, we were discussing many things, including taking a stand for things we believe are important. As followers of Christ, we are called to be servants, to care for our fellow man and for creation. We discussed living simply and the ways that ties into the environment and choices we make. We then realized there were many things we could talk about and we agreed that the information we were all gaining needs to be put into action. I am at a point in my life where it seems everywhere I turn I am gaining knowledge about different injustices and human struggle. Most recently I have been studying the human slave market. My friend said that she had been recently exposed to the fair trade argument and she was wondering if Tim Horton's used fair trade coffee. After inquiring at Head Office, she was told that:
"We believe the best approach to address the long-term issues facing coffee growers is through a “coffee sustainability” program. Although fair trade programs are admirable we decided against buying fair trade coffee and developing a program that works directly with the growers. The fair trade program requires certification on behalf of the farmers which is an expense they cannot usually afford plus it provides a price that has no relation to the quality of the coffee." The email goes on to vaguely describe their coffee sustainability program.

My friend asked me what I thought which has prompted this posting. I have a co-worker who took a course in her undergrad degree which focussed on the coffee industry. In this course, they agreed that fair trade was the best approach, but by all means, not the perfect solution. Fair trade's strategic intent is to deliberately work with marginalised producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency. It also aims at empowering them to become stakeholders in their own organizations and actively play a wider role in the global arena to achieve greater equity in international trade.

Fair trade advocates generally support the following principles and practices in trading relationships:
a)creating opportunities for economically disadvantaged producers. Fair trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.
b)transparency and accountability. Fair trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.
c)capacity building. Fair trade is a means to develop producers’ independence. Fair trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.
d)payment of a fair price. A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fairtraders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing. At this time, the fair trade coffee producers receive $1.26/pound.
e)gender equity. Fair trade means that women’s work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.
f)working conditions. Fair trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.
g)environment. Fair trade actively encourages better environmental practices and the application of responsible methods of production.

There is research to support the fair trade initiative (University of Sussex, Colorado State University, etc.). Studies have found that the lives of small producers have improved under this system.

As most developmental efforts, fair trade has proved itself controversial and has drawn criticism from both ends of the political spectrum. Some economists and conservative think tanks see fair trade as a type of subsidy that impedes growth. Segments of the left criticize fair trade for not being radical enough.

My co-worker shared that there are some down sides to fair trade, which includes the surplus of supply compared to demand. For example, Starbucks offers a fair trade coffee, but don't overly advertise this fact as this coffee costs them more to buy. With a surplus of fair trade coffee available, producers dump extra coffee that has no market demand.

I am having difficulty in finding research and specifics on coffee sustainability programs so it's hard for me to draw a conclusion for myself. That being said, it's no excuse to give up the quest to find out. Look out Tim Horton's! If my friend finds out the your coffee sustainability project is not up to par, she will get her whole network of people to boycott you! :-)

1 comment:

Anonymous said...

interesting. I look forward to reading more. you really have amazed me with some of your thoughts and efforts that have gone into your blog. you rock