Issues & Challenges in Fair Trade

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ISSUES & CHALLENGES IN FAIR TRADE FOR A BETTER WORLD SPRING 2012 ISSUE 4 FREE PUBLICATION

FAIR TRADE: THE LONG JOURNEY THAT INFORMS THE CURRENT REALITY ...... CELEBRATE WORLD FAIR FAIR TRADE IN THE NORTH? TRADE DAY WITH DEDICATED DOMESTIC FAIR TRADE www.fairworldproject.org FAIR TRADE BRANDS ENTERS THE MARKET Table of Contents Celebrate World Fair Trade Day with 5 Dedicated Fair Trade Brands A Fair World Project Initiative ...... Fair Trade in the North? Domestic Fair 7 Trade Enters the Market by Sue Kastensen ...... Visualizing Fair Trade Coff ee 8 by Daniel Jaff ee and Phil Howard ...... FWP’s Statement on Fair Trade USA’s 10 Resignation from Fairtrade International (FLO) by Ryan Zinn ...... 15 Maya Vinic: Moving from Tragedy to 17 12 Triumph by Monika Firl 8 ...... Small Producers’ Organizations at the 13 Forefront of Fair Trade 12 by Jeronimo Pruijn ...... Fair Trade: The Long Journey That 7 15 Informs the Current Reality by Jonathan Rosenthal ...... 13 Challenges of Certifi cation for 17 Fair Trade Crafts: Part 2 Introduced and Interviewed by Dana Geff ner Letter from the Director Mission: Fair World Project (FWP) promotes organic and fair trade practices Welcome to the fourth issue of For A Better World. Fair and transparent third-party certifi cation of producers, trade is at a critical crossroads and this edition’s cover manufacturers and products, both here and abroad. Through refl ects the challenges and opportunities in the fair consumer education and advocacy, FWP supports dedicated fair trade movement and marketplace. Small farmers, large trade producers and brands and insists on integrity in use of the corporations, certifi ers, cooperatives, Alternative Trading term “fair trade” in certifi cation, labeling and marketing. Organizations (ATOs), Non-Governmental Organizations (NGOs), student groups and other fair trade stakeholders Why FWP Exists: are trying and vying to defi ne and redefi ne fair trade. Can  Conscious consumers armed with informed purchasing power all these visions and experiences work together to uphold can create positive change and promote economic justice, the promise of fair trade? Fair trade farmers, workers and sustainable development and meaningful exchange between artisans look to the fair trade market as a pathway out of global South and North poverty. But with multiplying fair trade claims, seals and certifi cations in the market, consumers are confused on  The Organic movement, with the advent of federal how best to “vote with their dollars” and buy products that refl ect their values. Some claims regulations, has lost sight of the social criteria of fair prices, and certifi cations are strong and meaningful, others are weak and getting weaker, eroding wages and working conditions. core fair trade criteria. This issue will help answer questions and guide informed decision- making when purchasing certifi ed “fair trade” products.  Family farmers and farmworkers in the developing world are often impoverished by unfair volatile prices, wages and Fair World Project’s (FWP) outreach and advocacy eff orts continue, promoting fair trade and working conditions. watchdogging the fair trade marketplace. FWP is closely monitoring the evolution of fair trade standards, with special concern for plans to certify coff ee plantations as “fair trade.”  North American and European family farmers and farmworkers FWP facilitated 2,000 letters sent to major certifi ers in support of small coff ee farmers and face similar challenges, and thus we need to bring fair trade cooperatives, demanding that plantations not be considered “fair trade.” Our outreach and criteria home with “Domestic Fair Trade.” consumer mobilization eff orts have forced the major certifi er Fair Trade USA to revise a weak draft multi-ingredient policy. FWP’s Be Fair campaign (www.befair.us), launched in 2011, has  Existing certifi ers and membership organizations vary in their mobilized to date over 1,500 letters calling upon major brands to “Be Fair” and source fair criteria and philosophy for the qualifi cation of products and trade ingredients. brands for designation as “fair trade.” FWP will work to keep the term “fair trade” from being abused and diluted. This spring, Fair World Project aims to put fair trade front and center in stores across the country with our World Fair Trade Day activities in May, coordinating more than 500 retailers  FWP cuts through politics in the world of fair trade in order to feature dedicated fair trade brands all month. Also, along with the Fair Trade Resource to catalyze the rapid expansion of the universe of fair trade Network and Domestic Fair Trade Association, FWP is a primary organizer of a new North products, in particular promoting certifi cation to rigorous American fair trade initiative, the North American Fair Trade Stakeholder Council. The goal standards that give consideration to the local context of a of the council is to clarify the criteria and direction for the fair trade movement in North project. America, and uphold the integrity and promise of fair trade for marginalized producers around the world. The Fair Trade Movement: To a day when all trade is fair, The fair trade movement that FWP is part of shares a vision of a world in which justice and sustainable development are at the heart of Dana Geffner trade structures and practices, both at home and abroad, so that everyone through their work can maintain a decent and dignifi ed Dana Geff ner livelihood. Executive Director ...... For more Information on Fair World Project Distribute Fair World Project’s For A Better World please visit www.fairworldproject.org “For a Better World” is a free semi-annual publication that features articles from a variety of perspectives, including farmers, farm workers, consumers and committed fair trade Fair World Project Dana Geff ner brands. FWP helps consumers decipher fair trade certifi cation schemes and is an PO Box 42322 Executive Director excellent educational resource. Distribute “For a Better World” for free at your business Portland, OR 97242 [email protected] or organization. Order now by visiting our website at: www.fairworldproject.org 800-631-9980 [email protected] Ryan Zinn ...... Campaign Director [email protected] Letter to the Editor Cover Illustration By Tell Us What You Think. We would like to hear your thoughts. John Klossner Sue Kastensen Send letters to: Fair World Project - PO Box 42322, Portland, OR 97242 Project and Creative Advisor or email comments to [email protected]. Include your full name, address, [email protected] daytime phone and email. The editorial team may shorten and edit correspondence for clarity. News in Brief For more FWP News: http://fairworldproject.org/newsroundup.com Perils and Pitfalls in Fair Trade Cotton “Free Trade” Agreements Move Forward Despite widespread protest from farmers, environmentalists and workers, A Dec. 15 article by Bloomberg News exposed what the Obama Administration pushed through Free Trade Agreements (FTAs) it portrayed as forced child labor in an organic and with Colombia, Panama and South Korea. The new FTAs expand upon the fair-trade cotton program in Burkina Faso, which North American Free Trade Agreement (NAFTA) which has led to weakened provided raw material for the lingerie line Victoria’s environmental standards, increased poverty in rural communities and Secret. The US Department of Homeland Security watered down labor laws. A cross border alliance of farmers, consumers is also investigating the matter. However, Fairtrade and fair traders have increasingly called for a renegotiation of NAFTA to International (FLO) and the Burkina National Union of ensure that farmers’ livelihoods are respected and maintained. Cotton Workers have countered the allegations within the Bloomberg piece. While the jury may be out on the specifi cs in this case, fair trade has opened the eyes of many to the risks of child labor in various commodities, including cotton. TEDx Tackles the Plight of Farmworkers On Friday, October 14, at Mills College in Oakland, TEDxFruitvale: Equal Exchange’s Campaign for Harvesting Change brought Authentic Fair Trade together farmworkers, farmers, activists, artists, students, Equal Exchange, one of the founding fair trade professors, fi lmmakers, and entrepreneurs to celebrate the people upon whom organizations in the United States, has issued a call to we depend to harvest our food. In three sessions — Meet, Movement, and action to ensure that small farmer co-operatives remain Money — a diverse cast of speakers provided a 360-degree view of farmworkers at the center of the fair trade movement. Equal Exchange today and throughout history; compared labor’s progress with other social believes that cooperative organization is essential for small justice movements; and ended by discussing how businesses could embrace fair farmers to survive and thrive, and the cooperative model labor practices. is an important vehicle for economic empowerment and social change. “Fair Trade Says No to GMOs” Genetically Modifi ed Organisms (GMOs) are plants Fair Trade Shrimp on the Horizon or animals where the DNA has been artifi cially altered by genes from other plants, animals, Fair trade continues to spread beyond coff ee and tea. viruses, or bacteria, in order to produce Soon, consumers may be able to fi nd fair trade certifi ed foreign compounds. This type of genetic organic/ecologically raised shrimp from Thailand and alteration is not found in nature. Today, the other countries in Southeast Asia. Certifi ed coops majority of corn and soy grown in the U.S. is must adhere to IFOAM aquaculture standards and genetically engineered to produce pesticide use bioremediation techniques to sustainably recycle and/or withstand high doses of weed killer. This waste into nutrients for local farms. Fisher coops have corn and soy is found in countless processed foods long looked for market access for their product, as the such as cereals, baby foods, breads, chips, and many other products. global marketplace is dominated by large-scale farmed fi sh operations. Fairtrade shrimping off ers a clear ecological GMOs are prohibited under FLO and IMO’s fair trade standards. To push alternative for consumers looking for ethical shrimp. Fairtrade back the spread and negative impact, a number of organizations and International is focusing exclusively on shrimp during this pilot companies, including the Domestic Fair Trade Association and the Organic phase. IMO Fair for Life has a generic standard that is applicable for Consumers Association, have banded together to demand labeling of all fi sh and shellfi sh. GMO products, including a petition to the US FDA and a citizen ballot initiative in California.

3 Fair World Project | Spring 2012 Reference Guide to Fair Trade Certifi ers and Membership Organizations

 Long-term direct trading relationships  Prompt payment of fair prices and wages  No child, forced or otherwise exploited labor  Workplace non-discrimination, gender equity and freedom of association  Safe working conditions and reasonable work hours  Investment in community development projects  Environmental sustainability  Traceability and transparency

Fair Trade validation systems can be grouped into three major categories. The table shows their main attributes and several prominent examples.

*Eff ective December 31, 2011, Fair Trade USA resigned from the Fairtrade International (FLO) system and will be an independentorganization. As of “For a Better World’s” printing, Fair World Project (FWP) has not reviewed FTUSA’s new standards and procedures. Upon further evaluation, FWP will determine if it will consider FTUSA a reputable certifi er. FLO certifi ed products will be in the marketplace as of 2012 and FWP recognizes FLO as a reputable certifi er.For more information on the FTUSA and FLO split, please visit http://fairworldproject.org/statement We acknowledge that other socially responsible systems are available. While they certify for many of the same standards, they do not rise to the level of fair trade. This chart summarizes the logos of several certifi cation programs and membership organizations. A product sold by a company that is a member of a fair trade membership organization may not have gone through third-party certifi cation; conversely, a product certifi ed as “fair trade” under a certifi cation program does not mean that the company that produces the certifi ed product is a dedicated fair trade company.

www.fairworldproject.org 4 A Fair World Project Initiative Celebrate World Fair Trade Day with Dedicated Fair Trade Brands ingredients then make their way to Washington World Fair Trade Day is May 12! State, where they are incorporated into the formu- lations of Alaffi a Sustainable Skin Care, EveryDay n initiative of the World Fair Trade Organiza- purchases made at member co-ops of the National Shea, and Beautiful Curls products. The Alaffi a tion (www.wfto.com), World Fair Trade Day Cooperative Grocers Association will be given as mission embodies three clear principles: A(WFTD) is an annual global celebration oc- part of their Cause Promotion program in May to curring each May. Celebrations bring consumers Root Capital (www.rootcapital.org), a nonprofi t so- • Create: We formulate and create our prod- and businesses, nonprofi t organizations, churches, cial investment fund that is pioneering fi nance for ucts based on indigenous beauty knowl- student groups, and advocates together to host grassroots businesses in rural areas of developing edge and unrefi ned, fair trade ingredients. thousands of events worldwide. countries. • Inform: Alaffi a products inform the public about interconnections between commu- Here in the U.S., the Fair Trade Resource Network These dedicated fair trade brands have joined to- nities and how, together, we can alleviate (www.ftrn.org) will again coordinate U.S. specifi c gether to increase awareness and uphold the vi- poverty through fair trade and sustainable events between May 3 - 17, 2012. In 2011, 50,000- sion of true fair trade. “Fair trade is at a crossroads, choices. 70,000 people attended more than 300 local WFTD on the one hand there is increasing consumer sup- • Empower: Our fair trade shea butter coop- events including Fair Trade food tastings, talks, port for ethically produced fair trade goods, while erative and community projects encourage music concerts, fashion shows and much more, on the other increasing corporate pressure to low- self-suffi ciency and promote gender equal- to help promote Fair Trade while campaigning for er fair trade standards. Consumers should know ity in our West African communities. trade justice together with farmers and artisans. which brands are truly dedicated to fair trade who support high bar standards in trading fairly with In addition to providing a fair wage and benefi ts This year, Fair World Project is participating in producers, versus companies with only a minority to Alaffi a cooperative members, a minimum of World Fair Trade Day by organizing a joint proportion of fair trade sales more interested in mar- 10% of Alaffi a product sales are returned to Togo motion with some of our favorite mission driven keting than maintaining the integrity of fair trade to fund empowerment projects in disadvantaged brands that are dedicated to fair trade throughout criteria in business practices” says David Bronner, communities. This relationship is unique and their entire supply chains. In other words, these President of Dr. Bronner’s Magic Soaps. makes Alaffi a a true fair trade organization, build- brands have built fair trade supply chains for all of ing sustainable communities with aff ordable, their main ingredients throughout all of their prod- We want to highlight the incredible work each of clean and eff ective products. uct lines; their mission is fi rst about people and the these dedicated fair trade brands is doing to build planet. The dedicated fair trade brands sponsor- healthy and sustainable communities throughout ing this coordinated campaign are Alaffi a, Alter the globe by using fair trade as a model that is at Eco, Dr. Bronner’s Magic Soaps, Equal Exchange, the core of their business practices. Guayaki Yerba Mate, and Maggie’s Organics. Look for these brands at your local grocery store Over 500 natural product retailers across the coun- throughout the year and during this joint promo- try have already signed up to participate in this tion: unique initiative and many are hosting their own celebrations. Alter Eco In-store events will include sampling and promo- Alter Eco is a value-based brand of specialty food tional discounts from dedicated fair trade brands; products that brings delicious, exotic, high-quality a screening of a new educational video about the and healthy ingredients from around the world principles of Fair Trade; and contest entry for a 17 to people here in the United States, while directly day “Fair Trade Adventure to Sri Lanka.” The con- benefi tting the small-scale farmers that produce test will be the fi rst of its kind organized nationally them. Alter Eco’s off ering includes colorful Quinoa and will provide an all expenses paid trip in con- Real grains from Bolivia, Heirloom Rice varieties junction with Intrepid Travel for 2 to visit the ‘Coco- from Thailand, Dark Chocolate bars and Unrefi ned nut Triangle’ region of Sri Lanka where the world’s Alaffi a Sugar from the Philippines. The path of Alter Eco fi rst and largest organic and fair trade coconut oil Alaffi a was founded in 2003 by Olowo-n’djo Tchala and its products address many of the tough ques- project, Serendipol, is situated. Brands are also as a means to alleviate poverty and advance gen- tions we face about the food we eat today: Where donating 1% of each purchase made at Whole der equality in his native country of Togo, West does it come from? Who grows these products, Foods Markets to the Whole Planet Foundation Africa. The Alaffi a organization is a complete fair and are they treated fairly? How can we reduce (www.wholeplanetfoundation.org) which extends trade cycle. Members of the Alaffi a Shea Butter environmental impact and ensure an ethical sup- microcredit loans and grants to poor farmers and Cooperative handcraft raw ingredients according ply chain while delivering a higher quality, more entrepreneurs around the world. Similarly, 1% of to traditional methods in Sokodé, Togo. These nutritional product to our customers?

5 Fair World Project | Spring 2012 of coff ee, health benefi ts of tea and euphoria of Alter Eco decided to address these issues holisti- chocolate. Guayaki cultivates the beloved plant by cally. As a company, we are committed to: partnering with indigenous farmers in Brazil, Ar- • selling food products that capture distinct gentina and Paraguay, who rely on the rainforest attributes of various regions around the for their way of life and are the heart and soul of world conservation eff orts. Yerba mate is grown organi- • supporting the small-scale farmers who cally in the shade of the rainforest, while reforesta- grow our products by buying 100% of our tion projects nurture new yerba mate trees to grow products above and beyond Fair Trade stan- more. Each bottle, can, tea bag and loose-leaf bag dards, ensuring fair wages, good working of yerba mate sold supports Guayaki’s mission to conditions and hours, and opportunities for Equal Exchange restore 200,000 acres of South American Atlantic economic growth and development Twenty-fi ve years ago, Equal Exchange was found- rainforest and create over 1,000 living wage jobs • providing healthy, good-for-you organic ed with a simple but powerful idea: what if food for local communities by 2020. foods that come from a healthy, good-for- could be traded in a way that was honest and fair, you ecosystem and that empowered small farmers, consumers, • promoting agriculture that restores eco- and the workers themselves? Our ideas have tak- systems. 100% of our carbon emissions en hold and we have grown and evolved; but we are off set through reforestation and forest have never strayed from these deeply-held values conservation/restoration eff orts in Peru and and principles. Today, our democratic, 100% Fair Thailand. Trade co-operative employs over 100 worker-owners, trades with over 40 small farmer organizations in 20 countries, and supplies their fairly traded cof- fee, tea, chocolate, bananas, olive oil, and snacks to thousands of food co-operatives, faith congrega- tions, schools, cafes, and restaurants throughout the United States. Maggie’s Organics Maggie’s Organics has been providing accessories We engage in direct, long-term relationships with and apparel using certifi ed organic fi bers since our farmer partners, pay above market prices, fa- 1992. We came from the organic food business, cilitate pre-harvest credit, and access to produc- where we had direct relationships with organic tive and capacity-building projects. In the U.S., we farmers. Once we learned about the disparaging Dr. Bronner’s Magic Soaps work to inform, educate and engage the commu- conditions that workers endure at apparel facto- “Constructive Capitalism is where you share the nity in the issues facing small farmers, Fair Trade, ries, we knew we had to fi nd a better way. Sus- profi t with the workers and the Earth from which and our food system in general. Through these tainability cannot start and end with the earth’s you made it!” - Emanuel Bronner. means - strong relationships, consumer education, resources, but must extend to cover human re- community engagement, and concrete actions sources as well. For more than 60 years Dr. Bronner’s Magic Soaps - our goal is to strengthen small farmer supply has been a trusted manufacturer of soaps known chains, build a more just food system and a more So we endeavored to fi nd or to create factories for Old-World quality and simplicity. Living up cooperative economy. The time has never been where workers’ rights and independence are val- to our reputation as a benchmark for green body more urgent and the opportunities more within ued. We vet each supplier at every step of a com- care, we use certifi ed organic and fair trade ingre- our reach. plicated supply chain. We helped develop three dients for at least 95% of our agricultural input by 100% worker-owned cooperatives – two in Nicara- volume. With a long-standing cap on executive gua and one in North Carolina – that sew garments pay at 5 times the lowest paid position we’ve al- and gin cotton for many of our products. We pre- ways off ered generous benefi ts including no-de- pay each of our farmers to cover seed and plant- ductible health care for employees as well as their ing costs for every pound of their crop before they families. plant. We purchase all raw materials for each step of production, developing long-term relationships Since 2005 we have invested signifi cantly and with contractors that provide fair wages and good globally in fair trade supply projects ranging from working conditions. Sri Lanka (coconut oil), to Palestine & Israel (olive oil), to Ghana (palm oil), to Mexico (jojoba oil). Op- We are fully transparent about each supplier we erated by Dr. Bronner’s sister companies or by part- Guayaki Yerba Mate use; information on who makes each Maggie’s ner fi rms, these projects serve as catalysts for rural The rainforest and the commercial world have had product is available on our website. development and now aff ect the lives of some a rocky relationship; big business has long used its 10,000 farmers, workers and family members and buying power to access land and other valuable We are fortunate to have a customer base that their communities. We hope to inspire other com- forest resources unsustainably. But by fostering a looks beyond our styles and our colors to fi nd out panies to take responsibility for their supply chains demand for yerba mate, a drink made from leaves about the lives behind the labels, and we know and to ensure that they are sustainable and fair for harvested in the South American rainforest, Guay- that this is how trade truly becomes fair. all involved. Dr. Bronner’s proudly works with the aki has managed to harness the purchasing power Swiss certifi er IMO to develop and/or certify our of the consumer and take advantage of the system For more information about World Fair projects around the world. Videos and additional in a way that respects nature and protects people. Trade Day please visit www.ftrn.org information about our Fair trade mission can be found at www.drbronner.com . Guayaki has spent 15 years introducing North America to yerba mate, a drink with the strength

www.fairworldproject.org 6 Contributing Writer Tilth to conduct inspections and audits. Other certifi ers are preparing to enter in the US market in 2012. Sue Kastensen Branding, marketing, and messaging about domestic fair trade products in the market were among the many topics discussed at the December 2011 annu- Fair Trade in the North? al meeting of the Domestic Fair Trade Association. The conference attracts representatives from pro- Domestic Fair Trade enters the market ducer/farmer groups, farm worker and food service organizations, retailers, manufacturers, certifi cation love to eat fresh organic strawberries. In the sum- • How could we distinguish fair trade products agencies and others. mer I buy them from local family-farm producers grown and processed in the traditional global Ihere in rural Wisconsin, but in the winter I must south from the ‘developed’ global north? Prior to the meeting, David Bronner, president of source them from afar, which is when my decision Dr. Bronner’s Magic Soaps, introduced a discus- to eat strawberries gets tough. I understand that Dr. Bronner’s Magic Soaps is a manufacturing mem- sion to a broad group of fair trade enthusiasts. He the USDA organic seal on the transported straw- ber of the DFTA that wants consumers to be aware asked: “How should we identify US domestic fair berries verifi es that they are grown under the envi- that the company’s famous soaps contain not only trade products in the market?” While many in the ronmental conditions that are important to me, but traditional fair trade and organically-sourced oils movement correctly note that saying “Domestic Fair what about the labor conditions that are equally as such as the coconut, olive, and palm oils, but also Trade” on the label conveys what it means--applying important? Can I get organic and fair trade straw- domestic fair trade and organically-sourced hemp international fair trade criteria to commodities pro- berries? oil, that they purchase from Farmer Direct Coop, a duced at home in North America-- members of the Canadian supplier who only deals in organic and group wondered how traditional fair trade farmers The US-based Domestic Fair Trade Association fairly-traded ingredients. How should they diff er- and producers in developing countries might feel (DFTA) has been working on these questions since entiate the oils that come from traditional fair trade about using the term this way. And what about it formed as a working group in 2005. North Ameri- sources and non-traditional sources? commodities produced fairly in other developed can family farmers and farmworkers face challenges countries such as in Europe or Japan? Also as an in- similar in important respects to their counterparts Nasser Abufarha, the founder of Canaan Fair Trade, gredient or product descriptor, “Domestic Fair Trade” in the developing world: volatile prices leading to the largest fair trade exporter of olive oil to the US is pretty wordy. Many in the conversation seemed bankruptcy, and below poverty wages in unfair and and Europe, is concerned about recognizing the dif- to embrace “Fair Deal” as a preferred option for in- unsafe working conditions. Many DFTA members ferent struggles that US farmers and farm workers gredient and product descriptors, while keeping the are U.S. and Canadian farmers and manufacturers have relative to their counterparts in international term “Domestic Fair Trade” to describe the overall who incorporate traditional fair trade principles and fair trade. “Struggles that need to be recognized, movement. The term “Fair Deal” was originated by criteria into their operations in North America, and but depending possibly not as fair trade.” As Nasser Farmer Direct, Dr. Bronner’s Canadian hemp oil sup- would like to demonstrate to consumers that in- says “family farms, going against the subsidized plier, also a pioneer in domestic fair trade. The com- tegrity in labor and sustainability are important to corporate giants, yes; but if a single estate olive oil pany is comfortable seeing the term used generally. them, too. producer in Spain or California does the right things socially and environmentally, this does not go in the With fair trade experiencing monumental change in Swanton Berry Farm, located in Santa Cruz Cali- same category as ‘fair trade’.” both international and domestic realms, a group of fornia, is one of these producers. They would like concerned fair trade participants have formed the shoppers to know that they not only grow their ber- Wolfgang Kathe, head of the Social and FairTrade North America Fair Trade Stakeholder Council. The ries organically, but they also treat all employees Department at Switzerland-based certifi er IMO group would like to clarify the direction for the Fair with dignity and fairness. As Jim Cochran, founder agrees. “We need to be careful that domestic fair Trade movement in North America and seeks to ad- and president of Swanton Berry Farm states: “What trade in North America or the European Union does vance these four goals: would be the point of farming organically if the not support ‘rich’ farmers or production situations workers were underpaid, over-worked, or treated but contributes to improving the living conditions • Defi ne fair trade and the movement, what without respect?” They were the fi rst organic farm in of those that are marginalized in the local context. they are and what they are not the US to sign a contract with the United Farm Work- The more fair trade that is available, the more the • Organize the North American fair trade move- ers of America and carry the Union label which, Jim consumers may look for it in other products as well.” ment under a coordinated infrastructure with notes, recognizes “the professional relationship we a common vision have with our employees as co-partners in our joint The US is not alone in working on • Reach agreement on a plan for cooperation eff ort to produce the best strawberries available the idea of domestic fair trade. Last and accountability within the movement anywhere.“ year Italy’s Altro-Mercato, launched a • Develop a clear external message for the domestic fair trade brand called Soli- movement Timothy Young, founder of Food For Thought which dade Italiano (www.altromercato.it). produces and sells organic and fair trade jams, salsas They intend “to be an active and proactive actor in a The Council will occasionally invite public comment. and sauces, sees domestic fair trade this way: “It is social economy based on justice, sustainability and Please check the Fair World Project website for more a simple and needed concept. If fairness works in- cooperation as well as on the principles of Fairtrade”. information: fairworldproject.org/stakeholdercouncil ternationally, why not use that model domestically? Germany, France and the UK are working on domes- After all, how could a consumer, that does not know tic fair trade certifi cation as well. While the global fair trade movement in general is me or Food For Thought personally, know the dif- reviewing, rejuvenating and readjusting through ference between a global/industrial jar of fruit pre- Biofach, the world’s largest organic trade show, will its growing pains, domestic fair trade is poised for serves and a Food For Thought product? Transpar- again host a Fair Trade Forum this year, including a take off . This is a great time to introduce consumers ent third party certifi cation to a rigorous Domestic presentation entitled Domestic Fair Trade vs. Tra- to domestically produced commodities that have Fair Trade standard would allow those that qualify to ditional International Fair Trade. The panelists will been produced fairly and ethically. step up to the plate and get credit for their eff orts.” discuss the need for Domestic Fair Trade, the risks and opportunities for International Fair Trade and Next winter, I hope consumers like me will be able to However when discussing domestic fair trade with whether synergies can be developed between the purchase organic and fairly produced strawberries - others, questions arise such as: two approaches. along with a plethora of other domestic fair trade, • Isn’t fair trade about helping small-scale er, Fair Deal products. farmers and marginalized craft producers in Fortunately for consumers like me, fair labor certifi - developing countries? cation for North American farm labor is now avail- Fair World Project would like to hear your opinion! • Does domestic mean the product/ingredient able. The North Carolina-based Agriculture Justice Please join the discussion by sending in a letter to the ed- does not leave the country it was grown in? Project has developed a set of standards and has ac- itor or join us on the website: www.fairworldproject.org Doesn’t the defi nition for trade inherently credited certifi ers such as Florida Organic Growers, mean ‘between countries’? Midwest Organic Services Association, and Oregon 7 Fair World Project | Spring 2012 Contributing Writer’s Daniel Jaff ee and Phil Howard

For the U.S. fair trade market, Visualizing Fair Trade Coff ee these fi gures may off er one of the last reliable “snapshots” of large he fair trade certifi cation world has entered a period of major change. The companies’ coff ee purchases from recent departure of Fair Trade USA from the international certifi cation sys- fair trade small farmer organizations. Ttem led by Fair Trade International (formerly FLO), and its decision to develop Because Fair Trade USA’s new standards will allow roasters separate U.S. standards that permit certifi cation of plantation-produced coff ee, to certify coff ee from plantations and estates beginning in 2012, it will no lon- cocoa, and other crops, has thrown the meaning of the U.S. fair trade label into ger be possible to distinguish between sources. Companies purchasing little question. The recent appearance of a new certifi cation—The Institute for Mar- or no smallholder-grown coff ee could even have up to 100% of their coff ee ketecology (IMO) “Fair For Life” label—has made the panorama even more com- bearing the fair trade label. Thus, comparisons between the U.S. market and plex. These developments follow a decade of struggles within the fair trade move- the rest of the world may no longer be possible. ment over the nature of its relationship to large (often transnational) corporate fi rms, some of which have contributed to the dramatic growth of fair trade sales. The data in these charts are drawn from a range of sources: fi rms’ annual reports and social-responsibility reports; NGO reports on the coff ee industry; These graphics represent an eff ort to capture the level of involvement by large media coverage; interviews with roaster staff ; and responses by companies corporate fi rms in the U.S. and global fair trade coff ee markets. Because Fair to email queries for information. Note that there are many more fi rms pur- Trade International and Fair Trade USA do not divulge data on the volumes chasing fair-trade certifi ed coff ee in the U.S. than portrayed in these charts. of fair trade certifi ed products purchased by individual companies—deeming We included information for all companies that responded to our informa- the information a trade secret—basic fi gures on companies’ participation are tion requests, or for which we could fi nd publicly available data; many fi rms challenging to fi nd. This lack of transparency, critics charge, allows companies that did not respond to requests are not represented here. All fi gures repre- to engage in “fair-washing”—that is, to use low levels of engagement with fair sent purchases of green (unroasted) coff ee. One important note: for these trade to persuade consumers that they are socially responsible, and/or to dis- charts we include as “fair trade certifi ed” coff ee certifi ed under either the tract attention from other socially or environmentally harmful practices. It also FLO/Fair Trade International system (including Fair Trade USA as of 2010), or blurs the distinction between 100% fair trade companies (many of which have the new IMO “Fair For Life” system, to which many 100% fair trade fi rms have long histories of involvement with producer communities and organizations) recently switched. and those fi rms participating in fair trade at merely token levels.

Figure 1 shows the world’s 10 largest coff ee roasters and the Figure 2 shows selected U.S. coff ee roasters based on the year of their entry into fair trade, the levels of their fair-trade certifi ed coff ee purchases, as of 2008 percentage of their total coff ee purchases that were fair-trade certifi ed as of 2010, and the total (the last year for which these data are available). Only four of the top 10 fi rms purchased any fair-trade certifi ed coff ee at volume of their fair trade-certifi ed coff ee purchases. For example, the U.S. movement pioneer all: Nestlé, Tchibo, Starbucks, and J.M. Smucker (Smucker pur- Equal Exchange began selling fair trade coff ee in 1986 (well before formal certifi cation began in chased fair trade Millstone coff ee, part of the Folger’s line, from the U.S.), and purchased 6 million pounds of fair trade beans in 2010, all of them fair-trade certifi ed. Procter & Gamble in 2008). Nestlé, which received fair trade certifi cation in 2005 from the Fairtrade Foundation in the U.K. for its “Partner’s Blend” line (a controversial decision within the *2008 data; J.M. Smucker aquired Folger’s in 2008; Folger’s Millstone Brand established a Fair Trade line movement), had the lowest percentage of fair trade purchases, in 2003 at only 0.0025 percent. Number-two Kraft and number-three Data: GMCR Social Responsibility Report 2010; Starbucks Global Responsibility Report 2010; TCC Coff ee Sara Lee sold no fair trade-certifi ed coff ee as of 2008. Barometer 2009; Transfair USA/Fair Trade USA Almanac 2010; personal communication 2011

Data: Tropical Commodity Coalition, Coff ee Barometer 2009 Continued on Page 9 www.fairworldproject.org 8 Continued from Page 8

Figure 3 focuses on the specialty-coff ee giant Starbucks, which was the fi rst large corporate en- trant into the fair trade market in 2000. The fi rm has for several years been the largest purchaser of fair trade coff ee worldwide, but it has also placed far greater emphasis on its own, fi rst-party certifi cation system, Café Practices. Starbucks’ engagement with fair trade peaked in 2009 at 39 million pounds, and then declined substantially in 2010 to 21.3 million pounds, just under eight percent of its total green coff ee purchases.

Data: Starbucks Global Responsibility Reports 2009-2010; Social Responsibility Reports 2001-2008

Figure 4 portrays the ownership, licensing, roasting, and branding relationships between various fi rms selling fair trade-certifi ed coff ee in the U.S. It also distinguishes between 100% fair trade fi rms and those selling less than 100% fair trade (often far less, as Figures 1, 2, and 3 indicate). For example, Thanksgiv- ing Coff ee roasts the beans for Global Exchange’s 100% fair trade-branded coff ee. Restaurant and store-brand sales represent a growing proportion of fair trade sales. Starbucks wholly owns Seattle’s Best Coff ee, and roasts the coff ee for Costco’s Kirkland store brand. Green Mountain Coff ee has roasting and/ or licensing arrangements with McDonalds, Bruegger’s Bagels, Newman’s Own, and Caribou Coff ee. Cooperative Coff ees is a 23-roaster association with members in the U.S. and Canada that purchases coff ee collectively.

We hope these graphics will serve as a tool for consumers, and also contribute to ongoing debates within the fair trade movement regarding the benefi ts and challenges of corporate participation; how best to manage the relationships between fair trade activists, NGOs, certifi ers, corporate licensees, and 100% fair trade fi rms; and the future direction of fair trade.

9 Fair World Project | Spring 2012 Contributing Writer the global coff ee supply. Despite the current high prices in the coff ee market, fair trade coops are Ryan Zinn still unable to sell the majority of their coff ee under fair trade terms. Expanding fair trade certifi cation and market access to large-scale plantations will assure that fair trade cooperatives continue to FWP’s Statement on Fair remain vulnerable to volatile international markets and undermine 25 years of fair trade devel- Trade USA’s Resignation from opment. FTUSA’s decision has drawn the widespread con- demnation of fair trade producer networks, in- Fairtrade International (FLO) cluding the Network of Asian Producers (NAP), Latin American and Caribbean Network of Small Fair Trade Producers (CLAC) and Fairtrade Africa. air trade is a social movement and market The Problems with Plantations It is inconceivable that an organization whose or- model that aims to empower small-scale At its core, “Fair Trade For All” is FTUSA’s unilateral ganizational values include striving “to always act Ffarmers and their communities in under- decision to initiate certifi cation of Fair Trade cof- ethically and value relationships built on honesty, developed countries to create an alternative fee on plantation operations. FTUSA intends to mutual respect and trust” would advance a pro- trading system that supports equitable trading, open cocoa to plantation certifi cation as well. Fair gram without the knowledge or consent of the sustainable development and long-term trading trade was established on the values of supporting very producers it aims to support. relationships. Fair trade supports fair prices and small-scale, disenfranchised farming communi- wages for producers, safe working conditions, ties, most often organized in democratic coopera- Fairwashing Multi-Ingredient Products investment in community development projects, tives. Despite claims to the contrary, hundreds of Based upon initial drafts of FTUSA’s multiple in- and the elimination of child labor, workplace dis- thousands of small coff ee and cocoa producers gredient product policies, on October 19th FWP crimination and exploitation. organized in cooperatives and certifi ed fair trade declared that it would not recognize FTUSA as a still lack access to fair trade markets. To continue reputable certifi er as of January 1st 2012 unless Certifi ed fair trade products now represent a to make progress and expand the benefi ts of fair key provisions in the policy were corrected. In par- multi-billion dollar industry with over 10,000 trade, these producers must be given priority and ticular, FWP objected to the lowering of the fair products in the marketplace. Consumer demand support when considering further expansion of trade content threshold to 25% for a product to for fair trade products has steadily risen over the the fair trade system. Without strict standards bear FTUSA’s “whole product” seal and 10% for its course of the last decade thanks to the tireless and implementation, the expansion of fair trade “ingredients” seal, and the allowance for multiple work of dedicated advocates, fully committed to include plantations in coff ee and other sectors ingredient products to receive the FTUSA seals by companies, and students. will most certainly erode standards and dilute fair sourcing the minimum 10% or 25% fair trade (FT) trade’s impact. content, even if FT forms of remaining ingredients On September 15th, Fairtrade International (FLO) in a product were commercially available. Over and Fair Trade USA (FTUSA) jointly announced While it is true that farmer and worker advocates 2,000 FT advocates sent letters to FTUSA object- that FTUSA was resigning its membership in FLO, are deeply concerned with the plight of farmwork- ing to this draft policy. eff ective December 31, 2011. FTUSA’s resignation ers and other hired laborers in the Global South, it from the FLO system is partially due to its new is not conclusive that the current fair trade system FTUSA released its revised draft Multiple Ingredi- initiative,“Fair Trade For All,” which it claims will is the best antidote for their situation. Fair trade’s ents Product Policy on January 18, 2012. FWP is “double the impact” of fair trade by 2015. record as it relates to hired labor or plantation op- pleased to see that FTUSA has incorporated feed- erations, like tea and bananas has been anything back from various stakeholder groups on impor- FTUSA will also be phasing out its but successful. In fact, the literature suggests that longtime black and white “bucket boy” seal, replacing it with a new seal, Expanding fair trade certifi cation and market allowing FTUSA to compete with FLO globally. access to large-scale plantations will assure In an open letter, Rob Cameron, former CEO of Fairtrade International, wrote: “I, the staff at that fair trade cooperatives continue to remain Fairtrade International, and the entire global Fairtrade network sincerely regret FTUSA’s deci- vulnerable to volatile international markets and sion to pursue its own approach, rather than continue working within the global system. It is a de- undermine 25 years of fair trade development. cision they have taken themselves, and we have to respect their choice.” fair trade’s benefi ts miss the mark on plantations, tant issues, especially with respect to raising the Fair Trade USA’s move raises many questions for undermining the presence of farmworker unions whole product seal threshold to “100%” (actually fair trade producers in the Global South. Many pro- and ceding decision-making power to plantation 95% with allowance for non FT minor ingredients ducers rely heavily on the US market for sales and owners and managers when allocating the fair similar to the organic program) and ingredients distribution. FTUSA’s exit from the FLO system has trade premium. seal to 20%, and reinstating the commercial avail- caused confusion in the near-term as FTUSA’s has ability requirement to source FT forms of ingre- not fi nalized its own standards or details regarding Small producers and democratic cooperatives dients in products even if the minimum 20% FT its new labeling scheme, but initial versions mark- are core to the founding principles of the fair content threshold is reached. The commercial edly weaken key fair trade provisions and criteria. trade movement and market. By defi nition, small availability requirement in particular is a crucial In the long run, if fi nal rules remain low-bar, FTUSA producers are vulnerable, excluded and under market driver to expand markets for fair trade may well undermine consumer trust in the fair resourced in the global market. In the coff ee sec- producers. However, there are a number of criti- trade market and the overall positive impact for tor, small farmers produce approximately 70% of producers. cal areas for improvement, including clarifying Continued on Page 11 www.fairworldproject.org 10 Continued from Page 10 front package labeling for composite products, rized the misleading and deceptive labeling and market is overrun with hundreds of social, ethical, tightening compliance timelines for traders from advertising of Avon’s “Mark” brand products as green, and sustainable claims, labels and certi- two to one year and creating mechanisms to “Fair Trade Certifi ed” when, in fact, the products fi ers, many with questionable ethics and standards. For consumers to maintain confi dence in FTUSA and its certifi cation program, FTUSA must The commericial availability actively and in good faith be accountable to producers and civil society at large.

requirement in particular is a crucial FWP calls upon Fair Trade USA to do the following:

market driver to expand markets for 1. Suspend plans for certifying plantations in coff ee and cocoa. fair trade producers. 2. Engage civil society in good faith in the development of its new standards and establish clear mechanisms for accountable stakeholder review. publish to ensure transparency. Pending the fi nal so labeled contain a minimal amount of fair trade 3. Open its Board of Directors to participa- outcome of Fair Trade USA’s draft policy for mul- certifi ed ingredients. Over 8,000 people have tion from members of producer networks. tiple ingredient products, Fair World Project will signed letters in support of OCA’s complaint. OCA reconsider recognizing FTUSA as a valid fair trade is awaiting the pending decision from the FTC. 4. Commit to full transparency and trace- certifi er. FTUSA has repeatedly failed to apply a key FLO ability. rule, commercial availability standard 2.2., which 5. Create an ethical labeling scheme that FLO/FTUSA in Context states that “Food composite ingredients must does not allow a fair trade seal to appear FTUSA’s move away from FLO comes on the heels contain as many [FLO Fair Trade] certifi ed ingre- on the front of packaging unless a major- of the organization’s controversial name change. dients as available.” Dozens of products in the ity of the product is fair trade; and clearly In fall of 2010, FTUSA changed their name from US marketplace have failed to source fair trade identifi es fair trade ingredients on the TransFair USA to Fair Trade USA, eliciting a signifi - ingredients, yet continue to display the FTUSA front of packaging and whether the prod- cant uproar from within the fair trade community, fair trade seal. This dilution of the standards un- uct contains coff ee or cocoa from planta- with over 10,000 concerned consumers, advo- dermines consumer confi dence in fair trade and tions . cates, and organizations sending letters to FTUSA denies producers the full benefi t of a fair trade 6. Actively cooperate with FLO, IMO and expressing their concern about what many saw as market. other reputable certifi ers to establish a an eff ort to monopolize the fair trade market and “high bar” standard for fair trade cer- movement in the United States. The future of fair trade in the United States tifi cation, with mutual recognition for and beyond purposes of sourcing ingredients under In January 2011, the Organic Consumers Associa- Fair trade is at a critical crossroads. Despite the in- the commercial availability requirement. tion (OCA) fi led a complaint to the Federal Trade credible potential in the United States to support Commission (FTC), charging that FTUSA autho- ethical and fair companies and initiatives, the

North America Fair Trade Stakeholder Council Organizations Fair World Project participating in the Farmer Direct Co-operative Forms to Clarify Direction of Fair Trade Food Chain Workers Alliance Council: FUNDEPPO With Fair Trade experiencing  Organize the North American Global Exchange Alta Gracia Apparel monumental change in the past fair trade movement under Green America Alter Eco few months, some committed a coordinated infrastructure Handmade Expression stakeholders in North America Bon Appétit Management with a common vision JUSTA Fair Trade started a dialogue initiative in Company Just Coff ee December 2011 to clarify the di-  Ben & Jerry’s Reach agreement on a Just Works rection for the Fair Trade move- plan for cooperation and Canaan Fair Trade Kusikuy Clothing Company ment in North America with the accountability within the Canadian Fair Trade Network Made by Hand International goal of upholding its benefi ts for movement CATA – the Farmworker Support marginalized producers around Co-op Committee the world. The initiative, called Maggie’s Organics  Develop a clear external Catholic Relief Services the North America Fair Trade Northeast Organic Farming message for the movement CLAC Stakeholder Council, will begin Association Community to Community with around 40-50 nonprofi ts, As the Council gets more orga- Olympia Co-op Development advocacy organizations, com- nized and more momentum, it Once Again Nut Butter intends to periodically share its Cooperative Coff ees mitted companies, producer/ Organic Valley major ideas & highlights with the Dean’s Beans farmer/worker groups, academ- Peace Coff ee ics and others, who will hold con- public, and to occasionally in- Discoverty Organics Presbyterian Church USA ference calls and email discus- vite public comment. In balanc- Divine Chocolate Rural Advancement Foundation sions over several months before ing effi ciency with inclusiveness Domestic Fair Trade Association International attending an in-person summit and transparency, the Council Dr. Bronner’s Magic Soaps intends to maintain open, clear Thanksgiving Coff ee April 30 – May 2, 2012. Equal Exchange and transparent communication Theo Chocolate Fair Trade Burlington The Council seeks to advance channels with stakeholders in United Students for Fair Trade Fair Trade Federation these four goals: other organizations, as well as Vermont Coff ee Company other producer and consumer re- Fair Trade Los Angeles  Defi ne fair trade and the World Fair Trade Organization gions, to collaborate as much as Fair Trade San Diego movement, what they are and Zhena’s Tea possible. Fair Trade Resource Network what they are not

11 Fair World Project | Spring 2012 Contributing Writer Monika Firl, Cooperative Coff ees, Producer Relations Manager Maya Vinic: Moving from Tragedy to Triumph

f you have ever been to the headquarters of And yet despite this wealth of natural resources, bers together with producer representatives from the coff ee producers’ cooperative Maya Vinic Chenalho is poor in health, education, minimal 12 producer coops across Latin America. Some 40 Iin Acteal, Chiapas – you understand the pow- sanitary conditions, clean water, and economic people will spend four days visiting communities erful, positive impact genuine fair trade relation- and social justice. and farmers’ fi elds, exchanging ideas and experi- ships can have on the lives of small-scale farmers. ences in organic production, and debating the Since the founding of Maya Vinic, Cooperative opportunities and challenges we face in the ever- A Little bit of Background Coff ees has been one of their primary trading changing landscape of fair trade. The founding members of Maya Vinic come out partners. We have seen the cooperative grow and of the organization of Liberation Theology cate- develop into a self-sustaining, dynamic and moti- During this gathering, we expect a heated debate chists, “Las Abejas,” who created their cooperative vated family of farmers. regarding the proposal to include large-scale in the aftermath of the December 22, 1997 Acteal plantations in the USA-based, Fair-Trade-for-All massacre. On that fateful day, a group of locally Maya Vinic now sells all their export grade green project. From the small-scale producer perspec- trained paramilitary entered Acteal shooting at coff ee into fair trade and organic premium mar- tive, this initiative fl ies directly in the face of what random. Men, women and children dispersed kets. They also have developed a substantial na- fair trade pioneers set out to accomplish. in terror, seeking refuge. Unfortunately, no space tional market for roasted and ground coff ee and was found safe, nor sacred… and ultimately the will inaugurate their fi rst coff ee shop in San Cris- To unravel how we got to this place, we need to 45 women, children and elderly men who fell vic- tobal de Las Casas early 2012. look at how the FairTrade Labeling Organization tim were those who remained in the Acteal com- (FLO) historically focused on “growth strategies” munity church praying for peace. Over the years, we have attempted to walk their that shifted both its thinking and the face and the development path together – with roaster mem- focus of what fair trade intended to accomplish as The day of the funeral was hot, resolute and dev- bers of Cooperative Coff ees directly involved in a values driven enterprise. Take this to its tragic- astatingly sad. Each member of the community their projects. For example: the roaster Higher comedy extreme and you have TransFair USA arrived carrying a brick – which would be used to Grounds Trading supported potable water wells (re-baptized Fair Trade USA, cum “Fair-Trade-for- build a mausoleum to com- All”) distorting and diluting memorate their dead. Yet it the basic concepts of fair wasn’t until three years later, trade to the point that we with the birth of Maya Vinic now barely recognize what that they were able to create we’re talking about when the foundation for new life someone utilizes the term. in the community. Allowing plantation cof- The founding members fee to be called “fair trade” worked hard: organizing, is like calling “clean” coal training, reclaiming the land, “green energy” on par with composting, pruning, com- solar and wind: insofar as municating… both to locals “green energy” sourcing for support and externally Photo Credit: Monika Firl targets could be met us- for a fair market - all looking for a better alterna- in Maya Vinic communities; the roasters Alterna- ing “clean” coal, then true green energy sources tive to the life they had just come from. tive Grounds and Development & Peace promot- like solar and wind are sabotaged. Similarly, called the Maya Vinic story to open Canadian mar- ing plantation coff ee “fair trade” threatens to dis- “We were facing so many challenges at the begin- kets; and many other roaster members helped place true small farmer produced fair trade cof- ning,” recalled Antonio Ruiz, a founding member facilitate workshops to improve understanding of fee. Clean is better than dirty coal but is still not and currently working as the Maya Vinic offi ce and export market realties and quality criteria. “green”; ethical labor conditions on plantations is commercial manager. “But despite being chased better than exploitative but is still not “fair trade”. from our homes, displaced in refuge camps and At Cooperative Coff ees, we are proud of our role Fair trade fi rst and foremost means trading with living so precariously those fi rst years – we never when we see Maya Vinic commercial managers small family farmers who own their own farms. lost hope. Our cooperative helped serve as a light negotiate better prices for higher quality coff ee, to follow… that not only kept us alive economi- both on our own contracts as well as contracts In the case of coff ee, we are dealing with the cally, but also served to keep our community to- they negotiate with their other buyers. single most important tropical commodity. In gether.” economic terms, that makes coff ee second only “With buyers like Coop Coff ees, we are able to go to crude oil, and is the primary export of many de- The municipality of Chenalho is located in the beyond a trading partnership,” says Maya Vinic veloping countries. According to the Internation- region known as “Los Altos” or the Highlands of advisor Luis Alvarez. “Together, we have created al Coff ee Organization (ICO), worldwide exports Chiapas, a mere 70 kilometres from the touristic a strategic alliance. And not having to worry each of coff ee reached an estimated US$ 15.4 billion destination of San Cristobal de Las Casas. But un- year where we will sell our coff ee, frees us up to in 2009/10 and some 5.6 million tons shipped. To- til these “outbursts of violence” most foreign visi- concentrate on important projects like improving day with the increase in coff ee prices the market tors and Mexican nationals alike had never heard yields and quality and launching new projects.” value of coff ee exports in 2011 is well over US$ 30 of Chenalho. billion. And yet, most coff ee producers wear the Now, 10 years later and in celebration of our desperate face of poverty. Chenalho is a region rich in timber, sheep and cat- lasting partnership in trade, Maya Vinic will be tle, corn, bean and vegetable crops, and perfectly hosting our 2012 assembly meeting in Chiapas An estimated 70% of the world’s coff ee is grown suited for growing high-quality, organic coff ee. – bringing our importing staff and roaster mem- by 10 million small-scale farmers, cultivating less Continued on Page 13 www.fairworldproject.org 12 Continued from Page 12 than 10 hectares of land in 80 coff ee-producing At Cooperative Coff ees, we don’t believe in trickle- countries in Africa, Asia and Latin America. The vast down economics. If channeling resources through majority of them lack access to clean water, basic ed- the most consolidated centers of power were func- ucation, decent housing and all too often adequate tional, we would not be in this world-wide economic food on the table. mess to begin with. We believe that change hap- pens when you empower the disadvantaged. Add to the mix that most coff ee-producing countries have economic policies in place that favor and Cooperative Coff ees is a cooperative green coff ee incentivize large-scale plantation production and importer owned by 24 roaster members and spe- traders – thus, leaving small-scale farmers to strug- cialized in high quality, fair trade and organic cof- gle for market share on a rigged playing fi eld, left “to fees. We expect to purchase 3.5 million pounds of compete” without access to adequate credit, inputs green coff ee in 2012, or an estimated $11 million in or technology. contracts paid directly to small-farmer cooperatives. In the coff ee industry that makes us a “small player” And THAT inequality is precisely what fair trade set – which motivates us all the more to make every out to address. gesture count. We strive for maximum, positive impact on the lives of small-scale farmers – whom we Today with the launch of “Fair-Trade-for-All” – plac- consider the backbone of this industry – as well as ing plantation and small-scale farming operations in creating positive impact at every subsequent step Photo Credit: Coop Coff ees the same basket - we have lost a fundamental diff er- along the way. Maya Vinic now sells all their export grade green entiation in fair trade, and small-scale farmers fi nd coff ee into fair trade and organic premium mar- themselves right back at the starting gate for equi- For more information about our position on fair kets. They also have developed a substantial na- table trading conditions. trade, visit: www.coopcoff ees.com/committees/ tional market for roasted and ground coff ee and fair-trade-task-force/navigating-fair-trade/coop- will inaugurate their fi rst coff ee shop in San Cris- coff ees-position-on-fair-trade tobal de Las Casas early 2012.

Contributing Writer Producers –was created as a multi-product network of the region’s Orga- Jeronimo Pruijn nized Small Producers in 2004 during the Fifth Regional Assembly of the Latin American Network of Small Coff ee Producers. Currently, CLAC brings together approximately 300 cooperatives that produce coff ee, cacao, honey, bananas, orange juice, pineapple, mango, sugar, oil, seeds, nuts and other Small Producers’ products in 21 Latin American countries. Since the creation of the producer networks that preceded CLAC, emphasis Organizations at the has been placed on the importance and need of small producer’s organizations to maintain their identity within fair trade and sustainable production movements, both in the international marketplace, as well as the emerging local fair trade markets. In March 2006, in Tuxtla Gutiérrez (Chiapas, Mexico), Forefront of Fair Trade the CLAC launched its Small Producers’ Symbol (SPS) at a global fair trade conference. In 2009 the Symbol’s administrative offi ce was established as the The Current Situation for Organized Small Producers Foundation of Organized Small Producers (Fundación de Pequeños Producto- Most small producers live in communities with low levels of development, res Organizados, A.C. (FUNDEPPO), a non-profi t based in Mexico City. without adequate public services, and without sources of income to live a dignifi ed life. The future prospects for Small Producers’ Organizations (SPOs) The Small Producers Symbol aims to represent the values of organized small in the marketplace, and even in so-called “fair” or “sustainable” markets, are producers and act as a seal that identifi es products from small producers’ or- increasingly bleak. This reality is due to the increasingly unfair and unequal ganizations. With the seal’s end goal to support the sustainable community competition by major multinational corporations in the marketplace. development of small producers and provide a dignifi ed life for their families

Despite years of organizing, many SPOs are not yet able to sell their products at sustainable prices through their own channels or with long-term commitments from companies to purchase their products. Compounding these challenges, SPOs have a low or insuffi cient level of ownership and/or infl uence in the policies, standards and operations of sustainable certifi cation systems.

Nevertheless, producers’ networks and their ability for self-management, outreach and infl uence have been increasing over the last two decades. Many small producers’ organizations and their respective networks have made considerable progress, building capacity for local sustainable development through key projects and initiatives.

Latin American and Caribbean Network of Small Fair Trade Pro- ducers’ (CLAC) and the Small Producers Seal SPOs cofounded the modern fair trade system at the end of the 1980s. SPOs and producer networks from Latin America and the Caribbean, Africa and Asia together have grown the market of fair trade to over $5 billion dollars annually.

The CLAC – the Latin American and Caribbean Network of Small Fair Trade

13 Fair World Project | Spring 2012 and communities. The SPS is an independent and SPS certifi cation system was fi nalized. By the FUNDEPPO anticipates continued growth in certi- aff ordable certifi cation system based in coun- end 2010, the SPS system entered its operational fi ed SPS and traders. tries of origin, and on the values of sustainable phase and certifi ed 10 cooperatives, granting production, democratic organization, fair trade them use of the Small Producers’ Symbol. In 2011 and self-management. It is a unique initiative the Small Producers’ Symbol system moved into created and owned by small producers from the full operation and is expanding its coverage to South to identify ourselves Africa and Asia. To as- in the local and interna- sure broad access to tional market. It responds certifi cation services, to the problems and a re- FUNDEPPO is working ality experienced by small with diff erent organic producers and promotes certifi cation entities, the integral quality of their such as Certimex and products. Biolatina to provide services throughout the Small producers face many continent. Additional challenges, including un- agreements with other certain land tenure, ac- organic certifi ers are cess to credit and markets, currently being negoti- and a global food system ated. that prioritizes corporate agribusiness. This seal is The need for the SPS an important part of the is more pressing than struggle by small produc- ever. Fair trade certifi - Small Producer Symbol: The future for Fair ers’ organizations for a ers and standard bear- Trade Producers, Traders and Consumers fairer and more sustainable world, now increas- ers have historically ignored the perspective of The SPS off ers an accessible certifi cation system ingly controlled by large-scale businesses whose small producers, especially with regard to the that collaborates with small producer organiza- values are based on domination and exploitation. inclusion of plantation labor within the fair trade tions as authentic, democratic, self-managed or- This symbol allows SPOs to communicate our val- system. With new initiatives, like Fair Trade USA’s ganizations. It off ers the advantage of establishing ues of sustainability, dignity, justice and solidarity “Fair Trade for All,” which aim to expand planta- criteria that correspond to producers true needs with consumers. tion certifi cation to coff ee and other commodi- for sustainable production and dignifi ed living, as ties, small farmers need a seal that represents the well as facilitating production and marketing for The Small Producers’ Symbol is based on the prin- founding values of fair trade. This SPS helps small local markets. For fair trade companies, the SPS ciples and values that gave rise to fair trade. The producers distinguish their fair trade products in provides an opportunity to distinguish themselves standards of this label establish sustainable pric- the marketplace, while providing a clear indicator from other companies and other seals on the mar- es and rules for fair deals. Our symbol is part of for consumers to purchase products that refl ect ket by underscoring all of the Symbol’s added val- the movement working for sustainable produc- their values. ues: solidarity, sustainability and social, economic tion, solidarity economy and fair trade. It seeks and ecological responsibility. to strengthen local economies and to create a Although FUNDEPPO was founded by the CLAC, diff erent market and world based on values and its daily governance structures operate indepen- Finally, for consumers the SPS off ers an option to principles of justice and solidarity. It fulfi lls the dently of CLAC, primarily through its Board of Di- promote responsible consumption by strength- great alliance to safeguard the sustainable future rectors and its Standards Committee. FUNDEPPO’s ening democratic self-management by small pro- of small producers, our communities, culture and board and committees not only have representa- ducers and thus contributing to economic, social projects. tive participation of SPOs and their networks, but and environmental equality locally and globally. also delegates of European and North American Consumers are assured that the product they are FUNDEPPO and the Future of the Small Alternative Trade Organization. FUNDEPPO fore- purchasing develops a direct solidarity relation- Producers’ Seal sees other sectors, like consumer advocates and ship with the small producers who are behind In 2010 the fi rst comprehensive version of the other civil society organizations participating these high-quality products. Consumers are able within the Foundation’s governance in the future. to directly assist small producers in making their production and their lives more sustainable and FUNDEPPO, in close cooperation with CLAC, its fair, while supporting the producers’ organizations national networks of members, and its product capacity building and local economy. networks, has developed a complete system of standards and certifi cation that complies with What do the Small Producers ask you? the ISO 65 international standards for certifi ca- FUNDEPPO wants people and companies involved tion. FUNDEPPO´s certifi cation procedures for in fair and sustainable trade to get to know what producers and traders are designed to be quick the Small Producer´ Symbol is about, support it and inexpensive. SPOs and companies with solid and get involved in this initiative as much as pos- internal control systems will have little problem sible as a way to diff erentiate and promote the complying, as long as they stick to the standards. products and values of SPOs within and outside the fair and sustainable trade market. Let´s build The number of SPOs, traders and other actors this great alliance between people with similar who are certifi ed or in process to become so, values on both sides of the supply chain for once has quickly risen to a total of 67, including many and for all. Asking for the SPS at your favorite shop from producer countries as well as “consumer” is one of the best ways to create the demand and countries, like the United States, Canada and success of this eff ort in the market. Europe. Recently the fi rst products with the SPS on the European market were introduced by the For more information on the Small Producers Seal, cooperative fair trade company Ethiquable. With please visit their website (http://tusimbolo.org/). the addition of more certifi cation organizations,

www.fairworldproject.org 14 Contributing Writer Jonathan Rosenthal, Just Works Consulting FAIR TRADE The Long Journey That Informs the Current Reality

wenty-fi ve years ago, Rink Dickinson, to fi nd a way to overcome the limited possibili- Michael Rozyne and I founded Equal Ex- ties of the alternative traders and gain better ac- Tchange, an idealistic company that aimed cess to important markets in Europe. A Dutch to revitalize the food experience for US eaters. priest, who worked with the farmers, joined with We envisioned a company that would help birth a Dutch nonprofi t leader to create the fi rst fair a movement and enable people to know where trade certifi cation. Inviting larger companies to their food came from, who grew it and under commercially distribute ethically sourced prod- what conditions it was produced. ucts transformed the niche practice of alternative trade into the widespread phenomenon of fair More has been accomplished than we ever imag- trade, with a resulting rapid rise in awareness and ined possible. Today, there are hundreds of com- sales. panies devoted to what is now called fair trade, including some of the biggest brands in the There has, however, been a downside to this suc- world. Yet, we are not fi nished. I am reminded fre- cess. Where once alternative trade was ethical quently that what we have ended up with is what from initial production through distribution to I might call “less unfair trade.” fi nal purchase, it was now mixed with commercial trade. Fair trade products were clearly certifi ed, Fair trade is often presented as a recent invention but whether .1% or 100% of a company’s sales while fair trade, as it is currently constituted, has that will solve many of the world’s problems in- were fair trade, the company could still promote delivered great benefi ts, a closer look suggests stead of more accurately as a tool that has evolved themselves as a fair trade company. Thus, a whole that it could more accurately be called “less un- over thousands of years. The notion of fairness product line could benefi t from the halo eff ect of fair trade.” For example, if we compared the aver- in trade and community has a long history. The having one or two fair trade products, and con- age fair trade farmer’s standard of living to that Torah and Christian Bible, the Koran, Hindu and sumers had no way to tell how dedicated a com- of the average fair trade coff ee drinker, we would Vedic texts, the writings of the Buddha, and many pany was to fair trade. fi nd a huge disparity. Many farmers still struggle indigenous traditions off er ethical guidelines for to meet their families’ basic needs, while U.S. fair trade and supporting the poor and less fortunate As fair trade certifi cation became more promi- trade coff ee drinkers often struggle with having among us. nent, pressure for more rigorous certifi cation also too much rather than not enough. increased. Producers had to start paying for cer- In the United States, one early forerunner of tifi cation that was largely controlled in Europe. To better understand the limits of fair trade, let’s what we call fair trade was the Free Produce There was little public conversation about this put it in context. In 1925, a new car cost around Movement. Started in England, it was promoted changing power dynamic between poor produc- $290 or about eleven 132-pound sacks of un- by Quaker abolitionists in the 1800s as a way to ers of color and wealthier, mostly white buyers roasted coff ee. In 2011, an average new car cost end slavery by eliminating markets for items pro- and activists. We had no tools for discussing is- around $20,000, equivalent to about 60 sacks of duced by slaves. More recently, after the end of sues of power and trade in relation to race, class, coff ee. If those trends continue, in another 85 the Second World War, faith-based organizations gender, sexual orientation, language, or educa- years, a car will require over 300 sacks of green began importing goods produced by refugees, tion. It was as if we imagined that fair trade had coff ee. Farmers, with or without fair trade, are artisans and communities deemed poor or dis- vanquished colonialism and unequal exchange losing ground if they remain dependent on ba- advantaged. In subsequent decades, nonprofi t and brought about global justice and equality. In sic commodities. Fair trade or organic premiums organizations and principled small companies reality, however, the lack of conversation about in the long run are not enough to create healthy working in solidarity with social movements, lib- basic trade relationships, coupled with the rigor- communities. eration struggles and socialist countries expand- ous examination of farmers, but not companies ed this type of trade. or buyers, condoned a major unevenness in the This longer term framework helps us see that fair trade system. Although it was far better than con- trade is not the sole answer to exploitative trade Most of these eff orts were small and outside of ventional trade, it was not fair. systems, but rather a tool to help us make tra- mainstream trade, using alternative distribution ditional trade relationships less harmful and, at methods to move goods from their producers to While we implemented the term fair trade to help times, to change the game altogether. Through their fi nal consumers. Then, in the 1980s, spurred promote healthier trade relationships, the term fair trade, we do see a change, as trade becomes by a lack of access to suffi cient markets, a group itself implied that those relationships existed, less environmentally and socially destructive, of indigenous coff ee farmers in Mexico decided that we had achieved a just trade system. In fact, and, sometimes, even healing for farmers, fami-

15 Fair World Project | Spring 2012 The Reality Today, there are hundreds of companies devoted to what is now called fair trade, including some of the biggest brands in the world. Yet, we are not fi nished. I am reminded frequently that what we have ended up with is what I might call “less unfair trade.”

lies and communities. Fair trade often provides a sis of systemic oppression. nizations and even some corporations who aren’t platform for building capacity in communities so sure of the motives or accountability of these fair that they can have more control over creating a We focus on changing contracts and tweaking traders. better future. the terms of trade without engaging in the deep- er conversations about Farmers and their organizations and networks, Still, we must face the limi- structural and institutional on the other hand approach the competing de- tations of our eff orts. The One reason these power that would give mands of trade and social change with a practi- rise of fair trade over the conversations about us the capacity to work cal eye. They try to maintain multiple market past decade to increas- toward truly “fair” trade channels at the same time as they work steadily ingly mainstream status in power are so diffi cult between healthy commu- to gain more expertise in the marketplace along numerous countries has is that fair traders nities. with more voice in and, ultimately, more control not been accompanied of their trading relationships. A few are even buy- by a rise in conversations face the challenge of One reason these conver- ing or building their own consumer brands (e.g. about the long-term im- being inside an unfair sations about power are so Divine Chocolate) so they can learn more about pact of trade. Without that diffi cult is that fair traders the consumer marketing end of the supply chain, dialog, we can still con- market while trying to face the challenge of be- where most of the money in trade is captured. vince ourselves that we transform it. ing inside an unfair market While these experiments are small, they are con- already have the answer; while trying to transform it. crete steps toward equalizing trade relationships. we don’t have to look at This balancing act is so de- how much we have gained manding that even deeply This may seem like a sobering critique. What, you from unfair trade and what changes still need to committed fair traders have little time or space may ask, can we do about it? Just as we did with be made, not just in faraway farms, but inside our- for big picture, often uncomfortable conversa- Equal Exchange, we can all start small and dream selves, in our own families, communities, culture tions about power that would make a complex big. We can start conversations about power and and countries. undertaking even more challenging. systems of oppression in our own organizations and networks. As we learn how to do this better When we try to help “others” without including Others have chosen to get past this limitation by over time, we can change the ways we interact ourselves in the picture, we perpetuate the invis- accepting lesser incremental change that prom- with each other and with people across the globe. ibility of power, especially institutional power dy- ises big scale with large corporations. These fair If we believe that fair trade is not just about help- namics, and we become complicit in keeping the traders have chosen to use lower social standards, ing poor producers but about learning, unlearn- status quo intact. The US tradition of pretending value quantity over quality and use traditional ing and helping ourselves too, then we can push that the wounds of slavery and the extermination business approaches such as secretive decision- fair trade to move beyond less unfair trade—in of native people are healed keeps us silent. It ap- making to give them maximum fl exibility. This our lifetimes and for future generations—into pears that the fair trade movement lacks an analy- has created mistrust with activists, farmers’ orga- more and more satisfying fair trade. www.fairworldproject.org 16 Contributing Writer tion in Latin America. The buyer wanted access to the fair trade market in Europe and started Introduced and Interviewed by Dana Geff ner to buy 10 containers under fair trade conditions from the same producer organization. He had to pay the fair trade price to be certifi ed by FLO. He then went to the producer and asked for a dis- Challenges of Certifi cation for counted rate on the 50 containers since he paid such a high price for the 10 fair trade containers. I can tell you a lot of similar stories. On one hand Fair Trade Crafts: Part 2 certifi cation has contributed to increased sales for fair trade producers and on the other hand it n our last issue, For A Better World featured an have a certifi cation. Many of them think that, with has reduced the advantage that fair trade brings article entitled Challenges of Certifi cation for the label or a certifi cation mark, markets will open to them. FTOs are idealists; they still make mis- IFair Trade Crafts - Part 1, written by Tony Hall. up for them. There are people telling them that takes and are not always effi cient, but normally Today we continue our exploration of why the if their products had a label they would sell like they don’t deliberately try to exploit people in the diff erent craft stakeholders—including produc- hot cakes. They are not telling them that other name of fair trade. ers and artisan groups, wholesalers in the US, qualities as well are necessary to have success in and small and large retailers—would or would the marketplace, such as a product needs to be of Another negative point is that fair trade certifi ca- not want to participate in the certifi cation of fair high quality, delivered on time and priced right tion gets extremely complicated for small pro- trade crafts. so that people will buy it. Therefore, our mem- ducers and some times it is not easy to fulfi ll fair bers in the south have false expectations that a trade criteria. When you have certifi cation in ac- We interviewed Rudi Dalvai, president of the certifi cation label will automatically provide them cordance with ISO standards, it can be too strict World Fair Trade Organization (WFTO), to learn with access to more markets. I am not saying because the world is a little bit more complicated about fair trade craft certifi cation from the per- that the label will not help to sell the product but than a set of standards and criteria. When you spective of WFTO member producers/artisans it cannot be compared with certifi cation labels on certify based on ISO standards with closed eyes and businesses. The WFTO is a global represen- food products such as cocoa and coff ee. There is you sometimes expect something from produc- tative body of over 450 members committed to a huge diff erence between the market for com- ers that is unrealistic. This can make life much 100% Fair Trade, operating in 75 countries across modities such as coff ee, and niche markets such more diffi cult especially for small producers. An- Africa, Asia, Europe, Latin & North America and as baskets and jewelry. other negative is that certifi cation is too expen- the Pacifi c Rim. With elected global and regional sive and bureaucratic for small producer organi- boards, WFTO creates market access through In the North several members don’t see that a zations, but not for big plantations. policy, advocacy, campaigning, marketing and label will help increase sales because most prod- monitoring. ucts are selling to fair trade shops and not in the Traders in the mainstream market can gain ac- mainstream. A lot of people have tried to go into cess to new markets if they start selling fair trade We also asked three U.S. fair trade craft businesses the mainstream with handicrafts but very few certifi ed products. Fair trade certifi cation also of diff erent size to share their perspectives of fair have succeeded. Several northern companies protects FTOs from unfair competition. Costs trade craft certifi cation: SERVV, with $8.5million in are in favor of the label because they understand are higher for traders that are fulfi lling all the fair 2011 sales, Global Crafts with $1.87million in 2011 producers want it. They mainly support it for this trade standards. Therefore, if someone claims to sales and World Shoppe with under $250,000 reason. Some of them feel the label could help; be trading using fair trade criteria but is not, their sales in 2011. for example I had a conversation with the owner costs are lower because they are not paying for of People Tree, a UK Fair Trade clothing company. such things as fair wages, training and supporting Interview with Rudi Dalvai, President of She talked about needing the FLO label for her community development. Therefore certifi cation the WFTO products if she wanted to sell her clothing as fair reduces unfair competition and puts all people Dana Geff ner: What do trade and get them to the mainstream market. It that are certifi ed on the same level. you mean when you say depends a lot on the country, in the UK it is re- crafts? quired on textiles, but for musical instruments - Similar to the negative mentioned to producers, even in the UK - it does not matter much. certifi cation is also a burden for the traders for the Rudi Dalvai: First craft same reasons, it takes alot of money and also alot has to do with tradition; Dana Geff ner: In your view point, what are the of extra work. tradition of technique and benefi ts and downfalls of implementing a certi- tradition of culture. There fi cation? For the consumer it is a bigger guarantee. Be- are also crafts being de- fore FTOs were very small and comprised of very veloped that are transforming local material into Rudi Dalvai: In commodities, not handicrafts, committed people. People knew each other in items used daily in the fi elds, like baskets. Crafts producers have seen volumes increase substan- the movement and the guarantee was based on are made by hand and are part of the traditional tially through FLO certifi cation. They benefi t from trust. People don’t trust any longer because there life of people. Crafts were developed thousands increased market access and in some ways they are big players on the fi eld. The consumers are far of years ago before there were machines. I do are a little more protected. In the early years, Fair away from the traders and even farther from the not defi ne machine made products as a craft. Trade Organizations (FTOs) worked in partner- producers. It is not a coincidence that the con- ship with producer organizations. Today the big sumer organizations are asking for a label for a Dana Geff ner: Do all your members want fair players are coming into the fair trade market with certifi cation to give a guarantee for the consum- trade craft certifi cation? Who does and who does no clear regulations to monitor and inspect them ers. not? and mostly their main objective is to make profi t. By Bob Chase, CEO of SERVV Rudi Dalvai: No, not at all, there is a clear diff er- Generally profi t is what you make when you buy In the early days of the ence between the desire for a fair trade craft certi- cheap, sell high and keep wages low. Selling high movement, fair trade fi cation from our producer members in the south is not easy and so you have to buy cheap and was a niche market at and traders in the north. pay low wages. For example: a big cocoa buyer best with few importers in Europe was buying about 50 containers of and distributors. The en- Producer members in the south are very keen to conventional cocoa from one producer organiza- tire supply chain shared a common commitment to reducing poverty

17 Fair World Project | Spring 2012 through trade, guided by fair trade values. Almost ies, truly reap the benefi ts from the purchases of entry much more complex and expensive, with all of the participants in this process were non- consumers desiring to support economic justice the added burden of attaining certifi cation. Fair profi t organizations with clear developmental with their purchasing dollars. Trade has long been criticized by those on the agendas. Artisans and customers knew and trust- outside of membership organizations as an exclu- ed these organizations and their leaders, whom By Kevin Ward CEO and owner of Global sive club. Certifi cation will only make this worse. they often knew personally. Most of the custom- Crafts ers were far more interested in supporting social Certifi cation is often held Finally, it is relatively easy to cost commodity pro- change and economic justice than in the actual up as the panacea of fair duction. Craft production is a very diff erent story. products they were purchasing. trade. Following the suc- A model that establishes fair pricing for jewelry cess that labeling of agri- making in India has no relevance to basket mak- The organizations which made up the fair trade cultural products, such as ing in Uganda. Craft production is simply much community during its early years were part of a coff ee, has undoubtedly more diverse and in many ways complex than close knit community, one which met informally had on the sale of fair commodities. often, shared information openly and which held trade products, handi- each other accountable to their shared values. craft producers are ea- By Megy Karydes, Owner of World Shoppe ger to see similar results. Ideally, one certifying But Alternative Trade has become Fair Trade Handicrafts are funda- body would oversee a and the movement has grown, attracting the mentally diff erent and craft business from be- attention of a growing number of producers, even if we were to take ginning to end and pro- importers, distributors and retailers. As a result the success of fair trade vide (or not) its stamp of established organizations with long resumes and labeling at face value, it approval. Similar to what strong credentials fi nd it increasingly diffi cult would not transfer to the handicraft sector. Fur- occurs in the organic to diff erentiate themselves from organizations thermore, the success of fair trade labeling in movement. The appeal which may be making unsubstantiated claims re- commodities has also caused some signifi cant of such certifi cation is garding their adherences to fair trade principles. and largely unavoidable problems that we in the tantalizing. handicraft sector may be best avoiding. Discerning consumers can certainly verify the In our case, craft certifi - credentials of the organizations from which they For now, let’s assume that the certifi cation and cation would benefi t us purchase through their membership in the Fair labeling of commodities has been a success that because it would allow Trade Federation and the World Fair Trade Orga- we should seek to emulate. The question shifts to us to legitimately put nization and they should expect these organiza- one of results; would a craft certifi cation and label our stake in the ground tions to provide them with detailed information have the same positive eff ect in the marketplace? and say, yes, our prod- about how they adhere to all 10 fair trade prin- I am a coff ee drinker and a passionate believer in ucts are fairly traded. We work directly with our ciples. fair trade. The act of buying groceries and making artisans, ensure they are paid a fair wage, work the decision to buy fair trade over other coff ees with them on a long-term basis and treat them as But the reality is that as interest in fair trade is fairly straight forward. I am not a coff ee afi cio- partners. Right now, our best option is member- grows, consumers will require and deserve third nado; I am a coff ee drinker who buys fair trade ship in the Fair Trade Federation. party verifi cation of fair trade claims. Some con- coff ee. tinue to say that it is not possible to establish When we began wholesaling our jewelry from measurable standards for handmade products. Will consumers buy one bracelet over another South Africa and Kenya, well-meaning retailers Others feel that requiring home based artisans to because of a label as I do with coff ee? No, the la- asked us if we were certifi ed, incorrectly assum- be paid a fair hourly wage will price their prod- bel is just one small part of a much larger decision ing that all fair trade products could be certifi ed. ucts out of the market. And some feel that the making process based around, quality, aesthetics I would explain, best as I could, that while we are systems necessary to assure compliance to a cer- and an array of other factors. an active member of the Fair Trade Federation, we tifi cation system will leave poor producers and were not “certifi ed” as such because we are not a small importers at a disadvantage in competing Even if you disagree and believe consumers will commodity-based business. One retailer showed with much larger organizations. choose to buy that bracelet because of a label, me TransFair’s logo on a bar of soap. Try having is the price we will pay for a reliable certifi cation that conversation with a retailer who isn’t in- These are the same arguments which have been system worth it? The craft sector is lucky enough volved in fair trade daily, how that’s not the same made consistently to oppose minimum wage to see from our commodity-based friends the thing. She doesn’t care. She wants to see that logo laws and fair labor standards in our own country. negative impacts of fair trade certifi cation and so she can show her customers. Developing meaningful certifi cation systems will labeling. require ingenuity and creativity and there will But what is happening in the fair trade movement be costs involved in adopting and ad- For a label to have meaning it must be trust- nationally and internationally with regards to cer- hering to a certifi cation system. But ed and backed up by a strong certifi cation tifi cation frightens me. Organizations are splitting these costs should be seen as an system. The cost of these systems is high. off and creating their own certifi cation criteria. investment in insuring the integ- Others will argue that it can be done at National and international media is paying even rity and sustainability of the fair a lower cost, but frankly, you get what more attention and providing more airtime and trade marketplace. you pay for. If we want a system that ink space on the topic of fair trade certifi cation is credible it will be expensive. and what it really means. Consumers are becom- Handmade products gave birth to The cost of coff ee certi- ing even more confused. the Fair Trade movement and have fi cation excludes small changed the lives of millions of poor scale farmers from the Craft certifi cation from a legitimate organization artisans in dozens of developing system, leaving them which has the artisans’ best interests in mind countries. The market has changed to try to sell their fair would be ideal. It would be powerful for them to off ering new opportunities to trade coff ee with- be recognized for more than just making stuff . tens of thousands of artisans. out the label next Fair trade is so much more than that. Certifi cation is a small price to to the big brands pay to assure that these arti- that have the label. sans, and not the intermediar- New businesses fi nd Photo Credit: SEERV www.fairworldproject.org 18