Coffee is the world’s second most heavily traded commodity, behind oil. A few multi-national corporations (Phillip Morris, Proctor & Gamble, Cargill, Starbucks to name a few) capture most of the billions of dollars spent on our morning’s ritual. The small farmers, often indigenous, using organic and traditional techniques, have been left behind in a cycle of poverty. The disparity between Northern profits and Southern poverty is more obvious than ever as the global coffee market hovers at a historic low. As Wedge members and shoppers you have access to the alternative: Fair Trade Coffee.

Fair Trade in a general sense is an international movement. It is promoted globally by trade unions, farmers, environmentalists and concerned citizens as the alternative to Free Trade and Corporate Globalization - a trading system that has concentrated power and profits in Northern corporations while impoverishing farmers, laborers and the earth.

In the context of coffee, Fair Trade Certification is a consumer movement with a set of criteria establishing fair rules of trade, based on cooperation. Coffee farmer cooperatives and their trading partners (i.e. Peace Coffee) agree to follow internationally defined criteria that help producers earn a livable wage.

Fair Trade Criteria:

• Purchase directly from farmer cooperatives that are democratically controlled and made up of small family farms (no estate coffee).
• Guarantee a minimum price that ensures a just income for farmers.
• Provide pre-harvest credit to keep farmers out of debt to coyotes (local middlemen/loan sharks).
• Establish long term trading relation-ships based on mutual respect.
• Promote sustainable agriculture by buying from farmers that use traditional low-impact, chemical-free methods.

Once these criteria have been met and reviewed by the certifying agency TransFair USA, this coffee is worthy of carrying the Fair Trade label. The roasters using this label pay TransFair a 10-cent per pound licensing fee for promotion and administration costs; the farmers pay nothing to be a part of the Fair Trade system.

Fair Trade labeling of coffee started in Holland in 1988. There are now 17 Fair Trade initiatives in countries from Europe, North America and Asia with TransFair USA coming on board in 1999. These 17 organizations comprise the international umbrella organization FLO (the Fair-trade Labeling Organization). 300 Fair Trade Coffee cooperatives, representing 550,000 farmers and their families, are monitored by FLO. FLO’s list of Fair Trade products has grown to include bananas, tea, sugar, honey, chocolate and orange juice. These additional products are available to many Europeans. The U.S. Fair Trade market for them is not as developed, but with increased efforts by consumers, retailers and activists these and other products could be available here.

"Farmer Friendly" vs. Corporate Green-Washing

At Peace Coffee we consider our products to be "Farmer Friendly", a step beyond Fair Trade Certification. Farmer Friendly means we know the people who produce our coffee and these friendships help shape our business. Peace Coffee is 100% committed to Fair Trade - making the connection from farm to cup while acting as both Importer and Roaster. This stands in contrast to corporations like Starbucks that have one Fair Trade selection, which they rarely brew. This small commitment to Fair Trade is in fact a green-wash as they paint the picture of being responsible while the majority of their coffee purchases fall under the conventional system. The fact that these companies are now offering Fair Trade Coffee is certainly positive, but it is important for consumers to note the distinctions among companies that offer Fair Trade goods and support those that are Fair Trade companies.

The growth of Fair Trade and Farmer Friendly is more important than ever as farmers are facing incredibly low prices for their harvest. On my last trip to Mexico and Guatemala I heard directly from the farmers how important Fair Trade is to their families and communities. Roberto Ramirez, the president of the indigenous cooperative APECAFORMM (our Guatemalan trading partner), and I calculated that the farmers are receiving three times as much money through Fair Trade as they would if they sold directly to the coyotes (local middlemen). When we realized this Roberto turned to the rest of the cooperative and translated our conversation from Spanish to their native Mayan language Mam. These farmers, who until recently had no access to market information, are now fully engaged in the system through relations with companies like Peace Coffee.

The neighbors of APECAFORMM that do not yet participate in the Fair Trade system are in dire straights due to the low coffee prices on the conventional market. These farmers are forced to leave their coffee fields unharvested as they migrate to the cities or the border looking for jobs in the maquiladoras (sweatshops). This kind of globalization is pushing marginalized people over the edge. In stark contrast Fair Trade is allowing farmers to remain on their land, with their families and to be part of stable rural communities.

As consumer awareness and demand increases, the benefits of Fair Trade can spread to all farmers (including farmers and farm workers in our own country). The Twin Cities and upper-Midwest are a major force in the Fair Trade Movement because of Peace Coffee and more importantly the presence of the Natural Foods Co-ops. The purchasing decisions of co-op members, customers and workers make our area a rich resource for the advancement of these issues. From the farmers and all of us at Peace Coffee - thank you for enjoying our products and for joining us in creating a more just global economy.

• www.peacecoffee.com
• www.fairtradefederation.org
• www.fairtrade.net
• www.transfairusa.org
• www.iatp.org