By questioning basic assumptions about our consumer

by Lara Ryan

The idea of writing a column about fair trade coffee has been percolating in my mind for a while. I think it’s fair to say that on the priority scale of important things in our lives, thinking about the origins of our daily cup of java doesn’t register high on the scale, at least not for most people. But when we do reflect upon it, we realize that one of the most interesting things about coffee is that it’s a tangible demonstration of how small choices can have big impacts.

Coffee is grown in more than 50 countries, and the industry employs more than 25 million coffee growers. It’s the most traded commodity in the world after oil, generating annual sales of over $80 billion. Globally, two billion cups of coffee are drunk daily. Meanwhile, in the United States, the largest coffee-consuming nation in the world, more than 400 million cups are consumed each day. Take that figure, then consider that to brew a single shot of espresso it takes 50 coffee beans, each of which has been individually hand-picked.

Fair trade is a social movement and market–based approach to alleviating poverty and promoting sustainability. It insists that a fair price be paid to farmers for their goods, particularly exports from developing countries to developed ones, in order to ensure that the farmers earn a decent wage. The fair trade coffee practice currently guarantees a minimum price regardless of the volatile market, as well as credit to a farmers’ co-operative at fair prices. That co-op then invests the money in health care, education, environmental stewardship, economic independence, and other local sustainability initiatives in the community.

Supported by the United Nations and the World Trade Organization, fair trade’s basic principles include the following six components: fair prices; fair labour conditions; direct trade; democratic and transparent organizations; community development; and environmental sustainability. “The growing scope of fair trade on the global scene is an example of economic solidarity in which profit is not the sole objective of the business entity,” says José Antonio Ocampo, the U.N.’s Under-Secretary-General for Economic and Social Affairs. “In 2006, over 1.5 million disadvantaged producers worldwide were directly benefiting from fair trade, while an additional five million benefited from fair trade-funded infrastructure and community-development projects.”

In the early 2000s, coffee prices fell to less than one-third of their 1960 levels. This drop impacted more than 25 million households in coffee-producing countries and has now undermined the economic sustainability of those same countries. Several factors can be blamed for the decline in coffee prices, but the most basic one is supply and demand; despite the numbers, world coffee production is still much higher than consumption.

Economists are now speculating that increased supply control, price regulation, and fair trade initiatives will help solve the current crisis. That’s because the fair trade fixed minimum price for coffee can equal three times the unsubsidized market price. Plus, fair trade eliminates the middle people involved in the coffee trade, who often pay farmers below-market rates and then sell at the rates set by the major futures exchanges in New York and London.

British filmmakers Marc and Nick Francis explore the coffee issue in their award-winning 2007 documentary, Black Gold (check out the compelling trailer at www.blackgoldmovie.com). As the film demonstrates, countries such as Burundi, Uganda, and Ethiopia derive more than half of their export earnings from coffee alone. When the prices plummet, the economic and social effects are profound. One statement in the film is particularly startling: If Africa’s share of world trade increased by one percentage point, it would generate over $70 billion per year—that’s five times what the continent currently receives in aid. By increasing trade opportunities, marginalized producers and workers are better able to move from a position of vulnerability to security and economic self-sufficiency.

One way that North American coffee drinkers can support efforts to help propel Third World countries to sustainability is through our powerful purchasing power. Focusing on trade, rather than aid, we can significantly increase the potential for countries with exportable commodities to increase their fortunes and move their citizens out of a vicious cycle of poverty and dependence.

If you want to feel good about your java, read the label on the bag, can, or cup. If you see the Fairtrade Certified Mark, the coffee has met standards set by Fairtrade Labelling Organizations International (www.fairtrade.net) and guarantees that products sold with a fair trade label contribute to the development of disadvantaged producers and workers. Just Us! Coffee Roasters Co-op (www.justuscoffee.com), based in Grand Pré, N.S., near Wolfville, is perhaps the best-known fair trade proponent in our region.

Companies and consumers shouldn’t have to choose between social responsibility, the bottom line—and a good cup of joe. Fair trade is the perfect example of social and environmental sustainability; it is values based; promotes product quality, partnerships, and supply-chain management; and enables disadvantaged producer communities to become viable.

So the next time you’re standing in line, waiting to fork over three or four bucks to the barista behind the counter, why not think about the communities that you could be helping, and then say, “Fair trade, please.”

Lara Ryan is a business consultant specializing in CSR. She can be reached at lara@lararyanconsulting.ca.