Fair Trade, CRS, and the NY Times

Typically, Thanksgiving is considered a slow news day. Stories of which turkey the President will pardon and which big-box parking lots will be occupied by bargain-hungry shoppers seem to dominate the media reports. But this Thanksgiving was different for many in the Fair Trade movement. The New York Times gave front page (albeit in the business section) attention to the recent controversies in the Fair Trade movement.

One colleague of mine referred to the story–which relates reactions to the decision by Fair Trade USA to leave the global Fairtrade certification system–as airing the movement’s dirty laundry. But I’m glad to see attention being given to the issues “brewing.” There is a lot at stake for the people that Fair Trade serves.

The words of Merling Preza, general manager of PRODECOOP, in a recent interview with CRS, keep popping into my mind. She noted that for small-scale farmers, new certification standards are “…just a theory.” What works and what doesn’t, who wins and who loses by changing the standards will be tested in the lives of farmers struggling to overcome poverty. For companies, market share may be lost or gained. For consumers, there may be confusion or consternation. But for farmers the real impacts will be felt in their wallets, in their democratic organizations, and in their communities. Then again, there may also be positive changes in the lives of and opportunities for landless workers and unorganized farmers, groups historically left out of the coffee and cocoa certification systems.

Clearly the issues are complex, and emotions are running high. As we debate and deliberate, a top priority needs to be accuracy (not to mention civility). Let me take this opportunity to clarify the NY Times quote: ” The logo overload will include a redesigned Fair Trade USA seal; a Fairtrade International seal….; and labels from smaller programs, like one run by Catholic Relief Services.”

The CRS Fair Trade logo (seen to the right) is actually just that, a “logo” not a label. We use it as part of our “branding” or marketing efforts: to identify resources CRS has created (like this website), partners we have united with, conferences we sponsor, etc.

Unlike a certification process of commodity value chains, CRS doesn’t conduct audits, inspections, or other activities to verify that standards are being made from “crop to cup.” Instead, we recognize as partners those businesses and organizations that go through an independent, third-party process to prove that they are fully- committed to Fair Trade principles and practices. At the moment, the groups that we look to for that verification are Fair Trade Federation and Fair Trade USA.

For example, when a company such as SERRV applies for, receives, and maintains status in the Fair Trade Federation, CRS considers SERRV eligible to be a CRS partner. Or when a coffee company like Nectar of Life, purchases 100% of its coffee from farmer cooperatives certified Fair Trade, they are eligible to be in the CRS Fair Trade network.

Both our partners and CRS itself uses the logo to identify our relationship. We also use the logo to celebrate accomplishments like the awarding of Fair Trade Fund grants, which are made possible from partner contributions based on Catholic-affiliated purchases. The logo is not a certification label, but it is an endorsement: the companies who use it are businesses we believe in.

Knowing what and who to believe in, especially for a faith-based organization, is something we take very seriously at CRS. We thank the New York Times for its coverage, and we welcome any questions for further clarification from our readers.