Fair Trade

[m(a)ce]

So here we go.

I'm gonna be the little devil. Here comes a doozy of a post, but maybe some good discussions will stem from it.

I just finished reading the Saveur article on Ethiopian coffee and behold, a post on egullet. Anyway, one of the topics that came to mind while reading the article was the ongoing issue of Fair Trade coffee.

On one hand, we all know the one side of the feel good, fuzzy warm Fair Trade argument.

But I'm sorry to say that I'm not completely sold.

I feel Fair Trade has its heart in the right place, but its crosshairs are not aimed in the right direction.

Most of the coffee purchased (remember, coffee is the #2 most traded commodity in the world) is for major companies (think Nestle, etc). They dominate the coffee buying market. They buy whatever is cheap and this represents the lower grade coffee. That's why it tastes so bad. At the lowest graded levels, its not strange to see the processed coffee plagued with defects such as rocks, sticks, pieces of metal. (For those of you not familiar with green bean coffee buying, it is graded based on things such as uniformity, processing, etc. Visit this site to see what the best class entails: SCAA Green Bean Overview).

So back to the good stuff. These global companies control the coffee market, demanding prices stay low and that effects a majority of coffee growers in an adverse manner.

Unfortunately, Fair Trade has targeted the specialty coffee market which has consistently paid more for coffee than the larger corporations. Your local coffee roaster is not necessarily the boogie man. Good roasters that take their craft seriously buy coffee from the top 3% of graded coffee. They are willing to spend more for their beans because it usually guarantees a higher quality and better tasting product. Furthermore, serious roasters take the time to develop their relationships with either farms directly or brokers; this cultivation creates an expectation that if the farmers produce a better product, they will get more money by weight. The specialty green bean market is competitive and thereby rewards farmers that grow the best product with more demand for their product and in turn, more money. This idea of capitalism has fueled the organic specialty coffee market to go from borderline mediocre to superior than conventional coffee in the last 5 or so years.

And that is what Fair Trade misses. By targeting the small roasters and specialty coffee market, they are missing the big picture. The other consequence of Fair Trade is fair tasting coffee. Not exceptionally good or bad. Just fair tasting. I have cupped lots of coffee and I can say that none of the most memorable coffee I've tasted was Fair Trade. Fair Trade farmers are reduced to a socialism model that pools coffee from different farms, farmers or estates. It does guarantee them more money for their product (a good thing) but does not provide an added incentive to farm amazing coffee -- just fair coffee. And not to be too alarmist, but this practice could eliminate the boutique estate varietals that have started to shine (think of it as losing your favorite individual vineyard from Napa and having to drink a generic blend from all the farms).

I will give credit to Fair Trade for the beliefs and efforts, but I don't think we should necessarily be selectively guilted into paying more for a lesser quality product just to feel better. Where are those fighting for Fair Trade chocolate or sugar? Or how about sweatshop labor in Asia? How many people out there feel well enough after buying their Fair Trade coffee to go to Walmart and get their products supplied by underpaid overseas labor?

Is the current specialty market model perfect? No. It does need reform. It does need to cut out the middlemen or reduce their profit. But I think the biggest changes need to happen with the consumer. Within the US we need to stop expecting to pay so little for things.

Oh well, off to my mega strip mall to go to the chain stores and chain restaurants. . .

[malachi]

I think Fair Trade is a young movement, and it's probably a bit early to judge it. None the less...

It would be great if the big four bought into Fair Trade but we all know this isn't going to happen without a lot of consumer pressure over the long term. Small boutiques, on the other hand, are willing to get involved on a purely ethical basis. These businesses are not being forced to buy Fair Trade coffees, being "targeted" or being coerced into supporting Fair Trade as a concept. They believe in it. And it seems to be starting to work. Dunkin Donuts, for example, announced that they'll be using 100% Fair Trade espresso beans.

As for the "capitalism vs socialism" argument... I have a hard time believing that the increased prices paid by US roasters for the high-end green beans is resulting in increased wages at the bottom of the chain. Yeah - someone is getting more money, but I think we all know that is all in the middle of the chain.

In terms of the taste... I've cupped a lot of coffees in the last couple years. On average I cup between 10 and 12 new coffees per month (in addition to the regulars that I cup on an ongoing basis). While many of the best have not, in fact, been Fair Trade certified - a number have. Examples include the La Perla de Oaxaca from Intelligentsia, the Full City Sumatra from Equal Exchange, the Timor from Uncommon Grounds and the Fair Trade Organic Guatemala from Bucks County.

Your point that Fair Trade could eliminate boutique estates is unfounded. The La Perla mentioned above, for example, is produced by a prototypical boutique estate - albeit one that lives up to the Fair Trade standards.

The "pooling" model is actually a problem that is independent of Fair Trade and which, in fact, one could argue might be addressed long term by Fair Trade. Many small growers have begun pooling in collectives in order to compete on price given the glut created by the lowend Brazilian and Vietnamese growers and driven by the big four. "Pooling" is actually a real problem. You could argue that it is what has effectively destroyed Jamaican Blue Mountain coffee.

Finally... I could not agree more when it comes to your point that the problem is the consumers. Consumers in this country want everything for nothing and are consistently willing to sacrifice quality for cheapness (and then become upset when things break, or taste bad). I recently offered customers here a chance to pick up some 100% Kona Greenwell Farms estate coffee for Christmas gifts. I decided to do pre-orders only and built in just enough to cover our costs. We offered this coffee for $22 a pound. We had two customers buy a pound a piece (and employees order another 8 pounds). I heard at least 10 complaints each day about the "ridiculous" price.

[fredbram]

I am not nearly as familiar with this issue as the previous two posters, but, as a coffee drinker with a somewhat socialist bent, I am very interested.

My first thought is, is there room for some other designation alongside the Fair Trade option?

Some way that boutique growers and buyers that are getting a fair price to the grower can show that, without the downside of Fair Trade membership. Now, I don't know what the downside is, if any, but I do know that I run across coffees being sold that profess to be treating the growers fairly. Perhaps there could be some organization that certifies a certain level of fairness without the requirements of Fair Trade.

[Jim]

It strikes me that the Fair Trade Coffee movement is likely to be doing some good for the folks it aims to benefit by providing some coffee farmers with an opportunity to sell their produce at higher prices than they would get were they wholly beholden to the mega-buyers. The criticism that the Fair Trade program doesn't encourage top-notch coffees is wide of the mark, for that isn't the point of the program.

It looks like the Fair Trade program guarantees higher-than-normal prices and, in that sense, raises the floor. I don't see how such a mechanism discourages the growing of even better coffees that could , presemably, command higher prices. I am, of course, willing to be wrong on this latter matter, for I don't have a deep understanding of the coffee market's intracacies.

Lastly, I would have thought that the Fair Trade movement helps educate coffee consumers, although not necessarily those to whom the mega-buyers cater, and in that sense helps make consumers less of "the problem". I feel that consumers have the right to seek low prices and to consider whether the arrangements that allow the low prices they wish are, all things considered, ok with them. For my part, I'd rather pay a bit [only a bit, mind you] more for coffee I enjoy if I were convinced that the farmers also got a better than ususal deal.

[fresco]

I wonder if it is also possible that Fair Trade, having developed a recognizable "brand" for which people are prepared to pay extra, might now develop separate labels which address some of the taste and quality issues, perhaps as "superpremium" Fair Trade products?

[Java-Joe]

Hi,

There was recently a lengthy discussion about this topic on the Roaster's Guild message board. The RG is a sub-group of the SCAA (Specialty Coffee Assn. of America), of which I am a dues paying member.

I don't know if this link will work or not. Not too computer literate.

http://bbs.stoneworks.com/rgbbs/viewtopic.php?t=241

If that doesn't work, go to www.stoneworks.com.

Click on Public Board and you'll see the topic. There is some annoying debate there, but you can skip over that and get a good feel of how some of us roaster-types feel about the issue.

Best Regards,

Java-Joe

[fredbram]

Thanks for the link Java-Joe. I think what I get from that discussion is that I want to, as much as possible, buy from a roaster that takes the time and effort to know something about the growers that he does business with. I would like to buy a delicious coffee bean for my espresso, but ideally I would like it to be grown by someone who treats the planet well and receives a fair amount of money for doing so.

Do I care if it is "fair trade"? No, I just care that the spirit of fairness to the land and the workers is part of the process. A little more energy on my part in asking questions may be necessary, but I'm up for that.

Does this small effort change the world? No, but I do believe that it is my role to do every small part that I can to help solve the problems inherent in our unbalanced world today. In just the way that Chipotles and Mcdonalds are starting to demand better raised pork, beef and chickens, perhaps, at some point in the future, there will slowly be some more powerful players (Starbucks--are you listening?) that decide to do the right thing.

[Java-Joe]

Fred,

I appreciate your position on the FT/organic topic. It's one that I'm really trying to grasp. Our company sells a large selection of certified FT organic coffees. We have all the promo material from them. I don't think it's a bad "bill of goods." But perhaps it's one sided. I really need to digest more on this subject.

Do you buy coffee from Allegro (owned by Whole Foods Market)? They're really into the organic issues, et. al.

Also, a fine gentleman by the name of Carl Rand, of Durango Coffee Company, http://www.durangocoffee.com/ may be able to help you with procuring great coffee for your personal use. He's a good guy, and a member of the SCAA Roaster's Guild, an organization of which I, too am a member.

Java-Joe

PS: I hope it's ok to recommend a company. I am not he, and I am not promoting my own employers business. Thanks!