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25 Years Roasters to Have Their High Priority for the the Costs They Incur in Farmers Can Vary Their They Kill Several Birds with of Max Havelaar

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25 Years Roasters to Have Their High Priority for the the Costs They Incur in Farmers Can Vary Their They Kill Several Birds with of Max Havelaar of25 FAIRTRADE Years Max Havelaar from coffee till now How it all began Impact on coffee farmers Where are we now Future of Fairtrade coffee Introduction Contents In November 2013, the Max Havelaar Foundation celebrated its 25th anniversary. A quarter of a century ago, Fairtrade certified coffee entered the market – a world first. On November 15, 1988, the Netherlands first became acquainted with the Max Havelaar label and the idea of fair trade coffee. Since that time, the range of products bearing the Fairtrade mark has greatly expanded and there are now 28,000 Fairtrade certified products for sale. Has Max Havelaar proved to be successful? In other words, what has the foundation – now An enthusiastic start - pg. 08 part of a global network of Fairtrade organizations – done for coffee farmers and their New thinking on development - Max Havelaar: a simple idea – Entering the market - organizations? A global Fairtrade organization This book will answer those questions. But first, we’ll take a look at the trading Developments in the coffee market - pg. 18 circumstances that allowed for the emergence of an organization like Max Havelaar. Low prices – The coffee industry on the move - New highs and lows Next, we’ll explain what Max Havelaar started doing differently for farmers and middlemen. Finally, we’ll take a look at the future – to the challenges and opportunities facing the Max Havelaar organization. The Fairtrade model - pg. 24 Standards targeting small-scale farmers - Basic criteria: sustainable production - Organization and development – Standards for traders – At least the minimum price - The Fairtrade premium – Pre-financing of cooperatives Fairtrade Coffee’s Reach in Figures - pg. 34 The impact of Fairtrade - pg. 42 Research - The effects for farmers and cooperatives - Earnings - Access to credit - Broadening sources of income - Productivity and quality - Organizational effectiveness - Participation - Success and self-confidence - Stay or leave? - Effects on a regional and national level - Policy Impact - Regional prices - Community development - Environmental impact Coöperative development: two profiles - pg. 58 Prodecoop - Nicaragua - Gumutindo - Uganda Nobel Laureate Professor Tinbergen presents the first pack of Fairtrade certified coffee to Prince Claus. Jos Brink and Arnold Fairtrade continues - pg. 64 Abbema are also present. Introduction 4 5 “Peeze doesn’t just pay attention to quality, but also to the people behind the product. Many companies have sustainability policies and labels. But we are sustainable and that makes a big difference. Something you have – you can lose that. But something you are – that never goes away.” Paul van der Hulst, Director Peeze An Enthusiastic Start New Thinking on Development Today, anyone looking in western countries. in Prof. Jan Tinbergen at the Max Havelaar- Beginning already in the (1913-1994), a Nobel Prize stocked shelves of their 1970s, people had become winner in 1969. In addition, local supermarket almost increasingly concerned the conventional way can’t imagine that the with environmental issues, of helping developing label began just a quarter a growing scarcity of raw countries – in the form of of a century ago with the materials, the widening grants – came under fire. introduction of Fairtrade gap between rich and Opponents of this system coffee. In that time, the poor countries, and the argued that recipients of foundation’s guiding escalating power of big such grants were deprived principles reflected multinationals. Critical of their dignity and became ambitions that were a minds strove for a ‘New dependent on ‘donor good fit for the era of the International Economic countries’. Eighties. The Netherlands Order1‘ with smaller In this context, the Max had been stuck in an differences between rich Havelaar Foundation economic crisis for years and poor and more self- was founded in 1988. and younger generations reliance for developing The first turn of events had become critical of countries. They found came when development Isaías Martínez Morales: “We do not need the growing prosperity their academic equal organization Solidaridad help. We are not beggars. If you pay us a reasonable price for our coffee, we can then move forward without your help.” The foundation’s aim is to work with the poor and oppressed in the ‘Third World’, (...). The foundation seeks to achieve this goal (...) through support initiatives which are aimed at the creation and maintenance of new socio-economic structures that will ultimately lead to an improvement in the standard of living for the people involved. The foundation’s main work is primarily focused on partnerships regarding the making of coffee, with fair payment for the coffee producers being of paramount importance. and the Mexican coffee our coffee, we can then critical Dutch government From: Statutes of the Max Havelaar Foundation, May 20, 1988 cooperative UCIRI formed move forward without your official in the West Indies a relationship. Isaías grants.” In cooperation in the novel of Eduard Martínez Morales, one with other Dutch Douwes Dekker (pen name of the leaders of UCIRI, organizations, Solidaridad Multatuli). And, naturally, articulated their motive: expanded this idea into a Jan Tinbergen became the “We do not need help. We new model for trade. They honorary chairman of the are not beggars. If you pay dubbed the initiative Max new foundation. us a reasonable price for Havelaar after the famous, An Enthusiastic Start 1 Fair trade, Frans van der Hoff and Nico Roozen (2001), p. 11. 8 9 Max Havelaar A Simple Idea The philosophy of Max methods instituted by and coffee roaster that Havelaar was simple - and trade organizations such was willing to purchase still is. Give producers as Fair Trade Original, coffee according to these in developing countries formerly known as ‘SOS criteria was invited to join. access to the market and Wereldhandel’. SOS This is how the idea went pay them a fair price for Wereldhandel had already further afield. Farmers’ their products. This gives been offering ‘fair coffee’ organizations were also local producers financial since 1973. However, the subject to the new rules. security which then allows sale of this coffee was Only after each party in the them to invest and take limited because it was only coffee chain was verified steps in development. A sold through ‘idealistic to be in compliance with stronger economic position channels’. The coffee the new rules, could the then creates space for had to find its way to final product bear the Max social and environmental the supermarkets where Havelaar label. The label development – and consumers did their daily gave conscious consumers that helps the entire shopping. a choice and the guarantee community. It’s essential The Max Havelaar that the coffee had been that producers decide for Foundation paved the purchased from small themselves what course way for this jump to the farmers’ organizations they want to follow. Max supermarket by setting up under fair trading Havelaar built upon the trade criteria. Every trader conditions. A Simple Development Model The label gives conscious consumers a choice Certainty and the guarantee that the coffee has been purchased from small farmers’ organizations under fair trading conditions. • Economical Investment • Social • Environmental Development An Enthusiastic Start 10 11 Entering the Market Both at home and abroad, Max Havelaar was seen as a new, promising form for development cooperation. The start of the Max 600,000 coffee farmers and Though coffee roasters Havelaar label was hectic. their families.3 had their doubts, in the The purchase from the The majority of coffee world of Development Mexican farmers of roasters were skeptical of Cooperation there UCIRI could not cover all the initiative’s chances for was immediately big the coffee needed. New success. They doubted that enthusiasm about the new sources for the arabica consumers would throw initiative. Both at home and coffee beans could be a costlier pack of coffee in abroad, Max Havelaar was found in the region. But their shopping carts when seen as a new, promising the robusta bean used cheaper options were right form of development in blends had to come next to it. Initially, only a cooperation and the idea from Africa. However, for few small coffee roasters, was quickly imitated in the most part, African apart from idealistic other European countries. governments didn’t allow importers such as Fair In 1997, the new labelling organizations to buy coffee Trade Original, teamed up organizations4 jointly directly from cooperatives. with Max Havelaar. This founded an international It wasn’t until 1992 that the small group of risk takers umbrella organization supply of coffee from the was led by H. Neuteboom called Fairtrade Labelling highly-unstable Zaire (the and Simon Lévelt. In the Organizations (FLO), present Congo) could be beginning, supermarkets currently known as expanded to Tanzania and also had their doubts, but Fairtrade International Uganda. That first year, ten the power of publicity and (FI). By cooperating across farmers’ cooperatives were the continued demand borders, the organizations certified.2 And that number from consumers ultimately could soon do their jobs grew rapidly in the years to gave them no choice more efficiently. Fairtrade 2 From: Annual Report, Max Havelaar Foundation, 1989. follow. Now, Max Havelaar/ and coffee with the Max became the new term - now 3 FLO data, March 2013 Fairtrade works with 412 Havelaar label became also part of the Dutch Max 4 In 2013, there were 30 Fairtrade labelling organizations active in the world: this includes many European countries but also Japan, Canada, the farmers’ organizations widely-available in Dutch Havelaar label. United States, Australia and New Zealand. Some producer countries such An Enthusiastic Start which comprise more than supermarkets. as Brazil, Mexico and South Africa also have a Fairtrade organization that is responsible for the marketing of the label. 12 13 A Global Fairtrade Organization Fairtrade’s vision is a world in which all producers can enjoy secure and sustainable livelihoods, fulfill their potential and decide on their future.
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