Recently, I have been doing a bit of research on “Direct Trade” coffee roasters and the issues and challenges surrounding Fair Trade certification via TransFair represented by this now familiar logo:
The general consensus among roasters that have decided to go Direct Trade argue three main points: first, a lack of increase in fair trade premiums paid to farmers; second, the unfairness of concessions made to large businesses who use the Fair Trade label without fair practices; and third, the price of acquiring fair trade certification.
These are valid and important concerns. Personally, I too get a bit wary of Fair Trade certification; it’s use as a marketing strategy; and whether larger corporations who certify some of their products as “Fair Trade” are really 100% fair trade – it is very similar to the organic food movement, where critics argue that formal certification can erode organic standards by providing a legal framework for lobbyists to push for amendments and exceptions favorable to large-scale production, leaving small, independent farmers who are truly organic little incentive to get USDA organic certification due to both cost and principle.
Those who go Direct Trade claim that the money saved from not getting TransFair certifications goes towards paying the farmers and co-ops a higher premium. Moreover, since TransFair will only certify co-operatives, it also allows them to work with single, independent, small scale farmers.
The problem with Direct Trade is one of trust and verification. How can we be sure a product labeled Direct Trade is fair trade? There is currently no set standard for "Direct Trade" and no universal certification process. Some Direct Trade coffee roasters, like Counter Culture, set their own fair trade standards and invite a third-party auditor to come make sure they are meeting their own standards. Other big name Direct Trade coffee roasters include Intelligentia Coffee & Tea, and Stumptown Coffee Roasters, while many smaller roasters, some of which that were once TransFair certified, have begun to follow suit.
What is your opinion? Does certification really matter? Do you only buy items that have the TransFair logo? Would you buy a product that didn’t have the TransFair logo, but were assured that it was made with fair trade practices?
Leave a comment here or e-mail me directly at storemaster@globalexchange.org
-Tamara
GX Online Store Intern
Here are some thoughts (just that - I don't think I know enough on this topic to have an opinion. Just take a look at this thread and look at all the opinions out there! www.ecosalon.com/why-starbucks-sucks/). I lived in Costa Rica briefly and I remember the small farmers loved Starbucks' buying policy there because it was more or less direct - they sought out the best beans and paid a premium price for them. Farmers felt rewarded for growing the best quality beans they could (now how Starbucks manages to make their coffee virutally tasteless after the fact, is another story). I now live in Kenya, and the coffee farmers here lament how little control they have over their prices. They are isolated and don't have the option of taking their crops to anything but a middleman - fair trade or not. Perhaps the direct trade option would be good for them - regardless of who is buying - because at the very least they'd get a higher profit than they do now. Transparency is another story of course. With the rampant corruption here, it would be very hard to assure the beans were what they say they are - but that's where I need to gather some more information on direct trade - so I'm thankful for this post bringing it to my attention!
You raise an issue that is getting more and more discussion. Global Fayre is a member of the Fair Trade Federation, and as such we are concerned about much more than just the price element of Fair Trade. Increasingly we(and our customers) are focused on seeking out trading partners that are equally commitment to ALL the principles that the FTF signs up to (you can read these at www.globalfayre.com or www.fairtradefederation.org). Signing up to these principles may or may not be accompanied by use of Transfair's certification. Two examples of great Fair Trade partners are Equal Exchange (members of the Fair Trade Federation AND users of Transfair's certification) and Kickapoo Coffee (members of the Fair Trade Federation who choose NOT to seek Transfair's certification).
Important discussion. We abide by Fair Trade principles, but getting registered is another issue. What has happened to us is that certified Fair Trade wholesalers are approaching us directly, making a visit for a few days to check us out, and then deciding themselves if we meet Fair Trade criteria. We live in a couple of developing countries, and know for a fact that some of the "Big Boys" with their Fair Trade certification ae now doing VERY well and have waivered on the the principles.....we are talking big money here!!! And this has been the concern of wholesalers who have approached us directly. And BTW.... just how much of the stuff on Worldofgood.com these days is 100% genuine Fair Trade?
Hi Indochine Natural - Thanks for your insight. Perspective from folks like you, that have personal experience with these issues, brings valuable insight to discussions around fair trade. As far as your questions related to WorldofGood.com, the items and/or sellers on our site that are verified by WFTO, WFTO Asia, and "certified" in the case of Transfair make up our Fair Trade inventory - sticking to the letter of the law, of course, in using this labeling system (which in a lot of ways brings us back to the discussion at hand). This number is at about 2600 as of today.
My impression of the question here is really: If an organization is fully transparent in disclosing how it is going about working with farmers, and the standards it sets for its processes, how does one weigh this against the standards and processes of a more “official” certifying body? If the process and standards (assumed to be logical and transparent) are ones you can live by as a consumer – i.e., you’re OK with the fact that different standards in different growing environments might mean that your coffee isn’t organic (I did some reading on ethicalcoffee.net to further understand Direct Trade) then it doesn’t seem to me to matter what stamp is on your food. I do think an important aspect for all of these organizations, TransFair included, is standing up to a third party audit of their processes and standards – one which includes, but is not limited to, ensuring that the farmers are being paid fairly as it relates to their own cost of living. (It would be great to have transparency, of course, as to who does the auditing as well since that gives you more fodder to make your consumption choices.) That additional piece keeps me confident that whether one is TransFair certified or not, one is fulfilling the purpose of one’s mission. In a lot of ways, then, Fair Trade certification is a means to an end. (Just a reminder that while I work for WorldofGood.com, these views are my own.)