The Fair Trade Certification allows farmers and farm workers to work their way out of poverty. It provides farmers and workers the means to compete in the global market.
The Fair Trade Label actually began in the 40‘s, however, it did not catch on till the mid to late 80’s. The Fair Trade label assures consumers that the product that they are purchasing meets specific criteria of social, economical and environmental standards that are acceptable world wide. Fair Trade standards require that farmers receive fair wholesale prices for their crops. This ensures that farmers will receive a price above world market average.
I can go on and on about Fair Trade Labeling, all of its outstanding attributes and what it has done to raise the standard of living for coffee plantation workers world wide. I am a child of the Motor City. I am well aware of how important it is to protect the ‘little guy’. Union Auto Workers Association did a lot to save my friends’ dads and moms from being treated unfairly by our local transnational corporations.
Recent history has shown there is a place for this type of worker protection. Corporations seem to get lost in profit and lose sight of where true value lays - in their people. I believe the goal to protect workers is admirable and still necessary. Today, I believe the plan to achieve this goal is flawed. Today, businesses change at a speed that was unheard of when these organizations were created.
As far as the motor city is concerned The UAW is just one reason the United States Auto Industry is having a hard time competing. A couple of years ago I read that GM has to spend over $1,500 per car on health insurance and Toyota only pays $200 per car. Unless the UAW and the Auto Industry learn to work together in today’s business climate I cringe at the future of my hometown.
The point I am making is this. Both organizations - UAW and Fair Trade - have outstanding goals, objectives, and they have done so much good that it is hard to measure. However, they are broke but not beyond repair.
Generally, Fair Trade coffee shouldn’t cost more than other goods because most of the middle men have been cut out of the equation. However, as a result of cutting out the local middle man a number of jobs have been lost from the market without retraining to assist in finding a new one. This may not be a huge concern in the United States, but in a third world, poverty stricken community it is a huge deal.
Fair Trade certification has been abused by marking up retail prices while only providing the plantation owners marginal increases. When the transnational corporations choose to sell Fair Trade Coffee the decision is based on profit first. The same corporation will not pay their workers wages similar to their profits and often put smaller, local business owners out of work. So a social consciencesness and going green are great marketing tools for them, however are not necessarily congruent with their other decisions. When a small retail operation chooses to go green or sell fair trade products it usually has less to do with profit and more to do with social concern - mainly because the smaller companies can not compete with the larger transnational companies purchasing power.
My other concern of where The Fair Trade Labeling system is broke is the price per pound they require be paid for coffee with their label. It was a great idea and a necessary one, however, its broke. Some Farmers can’t pay for the Fair Trade inspections so they are pushed into cooperatives which creates its own democracy or regime. In a program created to eliminate the middle man it has created a new middle man. Now the farmer, who is suppose to receive a fair price per pound instead receives whatever portion the co-op decides. Therefore, a corrupt co-op can make farmers never see the benefit of fair trade coffee.
Is any of this the fault of the Fair Trade Labeling system. Not necessarily, but it is a problem they have failed to address adequately.
So, I have pointed out the problems... what are the answers. For the Fair Trade Labeling people that is up to them. For Guillermo’s, we have decided to do what we can by continuing to support Fair Trade when possible, but to also expand our reach to assist those in coffee growing regions directly.
Guillermo’s Gourmet Grounds is proud to support Coffee Kids. A non-profit whose mission is to improve the quality of life for coffee farming families. Guillermo’s is also proud to have paid the college tuition for students in Costa Rica. English school for students in Honduras which will allow them to work in the tourism industry in their country. We have purchased all new band instruments for a school in El Salvador. Currently, we are attempting to buy a new school bus for the same school, so kids of these coffee farming families have transportation to and from school.
Fair trade is great, support it when you can, but keep in mind there are other ways to support these coffee farming families in ways Fair Trade can’t touch. Usually, you will find these alternative in small coffee companies around the country. When purchasing coffee from Guillermo’s some of it will have a fair trade label on it and some will not, but you can be assured either way you are helping to touch a life in Central America.
They’re refreshingly cool, come in fun, fruity flavors, and are served with a straw. What’s not to like about smoothies? They’re so popular that you can now find them at fast food restaurants, grocery stores -- even coffee shops. But while smoothies may sound like a healthy treat, sometimes they’re anything but.
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