We are weeks away from launching two shops that will carry a dozen varieties of Organikos coffee, a fair trade selection among them. Fair trade coffee has been selling well to the people who visit Costa Rica and want to support its sustainable development. We will also offer an organic coffee, which sales data show to be approximately twice as popular as fair trade among these same visitors. We are committed to these two forms of certification for reasons that should be clear from the eight years and thousands of posts on this platform.
But we also believe that all our coffee selections should be chosen by us using ethical criteria, and that the people buying these coffees care more and more about these criteria precisely because those certification programs have had an impact. The Guardian on occasion publishes an article like this one by Samanth Subramanian, who has an eye for important puzzles, that challenges our assumptions in very useful ways:
Fairtrade changed the way we shop. But major companies have started to abandon it and set up their own in-house imitations – threatening the very idea of fair trade.
It wasn’t very long ago that a banana was just a banana – just a curved, yellow fruit. All you knew, if you bought a bunch in 1986, was that they cost around 97p per kilo. You weren’t told if they were organic or pesticide-free. You didn’t know if they came from Costa Rica or the Dominican Republic. And you certainly weren’t invited to worry about the farmers who grew them – or if their children went to school, or whether their villages had clinics. You just picked up your bananas and walked to the next aisle for your coffee or tea or chocolate, none the wiser about where they came from either, or about the people who farmed them.
Back then, the countries that grew these commodities and many others were still known as the Third World, and the habit of not caring about their farming conditions was a legacy of their colonial past. For centuries, trade propelled the colonial project, and exploitation was its very purpose. The farmers of Asia, Africa and South America were forced to raise the crops that the empire’s companies wanted, to work the crops in abject conditions, and to part with them at ruinously low prices. In the last century, the empires melted away but the trade remained lopsided – with the imbalance now rationalised by the market, which deemed it “efficient” to pay farmers as little as possible. In the 1970s, a Ghanaian cocoa farmer often received less than 10 cents out of every dollar his beans earned on the commodities market; as a proportion of the retail price of a chocolate bar, his take was smaller still. Child labour was common. The chocolate companies prospered and their customers shopped well; the farmers stayed poor.
Then, in the late 1980s, you began to hear more about these farmers, encountering their stories on television or in newspapers or even on the labels of the packages you bought. The reasons were manifold. Environmental awareness was on the rise. The prices of some commodities were crashing, placing agricultural incomes in even more acute peril than usual. There had already been small groups pushing for more equitable trade: “little do-good shops scattered in cities around Europe, selling products … bought at fair prices directly from small producers abroad”, as one pioneer described it. By the early 1990s, these disparate initiatives began to coalesce into a larger international struggle to radically reform our relationship with what we bought. Trade had long been unfair by design, but now there was a growing movement to make consumers care about that unfairness, and even to help rectify it.
The crown jewel of this movement was Fairtrade International, an umbrella body formed in 1997 out of various national chapters that had sprouted over the previous decade. Fairtrade was founded on the conviction that consumers could make the marketplace more moral. The spine of Fairtrade’s philosophy has always been price: simple, clean, the kind of measure that economists like to deal with. If companies pay farmers equitably, Fairtrade believes, other benefits cascade out as well. Farmers can hire adult workers, rather than employing children; they can send their kids to school, and buy medicines; they can improve the yields of their farms by using better fertilisers. Producers must meet a number of standards to qualify for Fairtrade: rules about labour conditions, for instance, or waste disposal. But for companies, the totality of their ethical responsibilities towards their producers is encapsulated by price.
So Fairtrade works by forming a kind of “virtuous triangle” of ethical business. It recruits farmers and farming cooperatives as members, asking them to meet its standards; periodically, Fairtrade sends inspectors to these farms around the world, ensuring they are still compliant. At another vertex of the triangle, Fairtrade enlists companies to pay a minimum price, always set above market price, for commodities from these member farms, and offers to certify products made from such ethically sourced commodities. The final corner is the customer, who can, with a little counsel, be galvanised to shop consciously, and to buy Fairtrade-certified products even if they cost a few pence more.
The Fairtrade certification mark has become widely familiar: a green-blue-black logo, resembling a yin-and-yang with a tear in its middle, soothing the consciences of shoppers the world over. Roughly $9bn worth of Fairtrade products were sold in 2017, their raw material sourced from 1.66 million farmers. Around 2,400 companies, including multinational giants such as Tesco and Marks & Spencer, pay licence fees to their national Fairtrade chapters to use the mark on their products. Fairtrade has become a byword for ethical consumption; 93% of British shoppers now recognise its mark…
Read the whole story here.