Fairtrade 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 Provide credit to farmers so they can rely less on

loans from middlemen Develop direct long-term relationships between fair-

trade distributors & importers/roasters

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

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, Fairtrade Coffee had become the fastest growing aspect of the coffee industry

Growth & Success With the success of Fairtrade Coffee, the market

expanded to include bananas, tea, sugar, vanilla, and rice by 2005.

By 2011, Fairtrade sales reached $11 billion USD

Today the NGO has expanded to chocolate, gold, and even 3D printer filament.

Major businesses such as Dunkin' Dounts, McDonands and Starbucks offer some fair trade products.

Criticism Many companies are using the Fairtrade label to

improve their image, but not really changing. 2010 Starbucks uses only 8% Fair Trade Coffee

Fairtrade is costly for farmers as they need to adhere to certain principles Organic -Hire workers and pay them fairly

The popularity of the Fairtrade market hurts the poorest farmers who cannot adhere to these standards

Not all Fairtrade 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

Fairtrade Done Right!

JustUs! Coffee 1st Fairtrade 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/

Alternatives Thrive Coffee: Farmers roasting and packaging

their own coffees http://www.thrivefarmers.com/

Rainforest Certified: Eco-friendly approach, focus on business practices for corporations

http://www.rainforest-alliance.org/work/agriculture/coffee