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Fair Trade

January/February 2008

By Laurel Hopwood

Fair trade is an innovative approach that guarantees farmers will receive a fair price for their products. This allows them higher living standards, sustainable farming practices and improved working conditions.

Fair Trade Certified coffee is available from dozens of African, Latin American and Asian countries. Hundreds of small-scale, worker-owned cooperatives representing 500,000 farmers and their families grow and export coffee through the Fair Trade market. Fair Trade standards also exist for tea, cocoa, chocolate, spices, and some fruit.

When a product bears the fair trade label, it means that it has passed strict economic, social, and environmental criteria for certification. The system eliminates the middleman by creating direct trade relationships with farmers. Workers are empowered by instituting a democratic decision making process. Unfair child labor practices are eliminated.

That's not all. Fair trade representatives teach farmers the value of reducing erosion and waste, limiting pesticides, and protecting waterways and virgin forests. With greater economic independence, fair trade farmers can afford better food, housing and keep their children in school.

Historically, the collapse of world coffee prices has been contributing to societal meltdowns affecting millions of people, resulting in a combustible brew of unemployment, hunger and migration. Coffee farmers are now receiving only twenty cents per pound for their crops, which is one third of the actual cost of production. Although there is no easy answer to solving the price crisis, Fair Trade is a viable market-based alternative that enables farmers to survive and invest in their farms and communities. For many, the fair trade system has meant the difference between keeping their land and farming successfully or losing it and drifting into urban slums.

Flora and Antonio Montenegro were some of the early pioneers. They produced Fair Trade Certified coffee on their small coffee farm in Nicaragua for export to the United States. At that time, fair trade seemed hopelessly fringe. Equal Exchange embarked on a tireless educational campaign. At the start, this fair trade company was ridiculed by the coffee industry for being naive. The conventional wisdom was that you couldn't pay small-scale producers more than the world commodity price and still expect to compete at retail. Equal Exchange remained vigilant.

Fair trade has now reached critical mass. In 2003, Dunkin' Donuts announced that all of its espresso would be Fair Trade Certified. For many in the coffee industry, this was the singular event that announced fair trade had arrived. In an effort to boost its flagging morning business, McDonald's followed suit. Presently, thousands of retail outlets, faith based organizations, and college campuses are carrying Fair Trade Certified coffee.

Every time you purchase a Fair Trade product, you are participating in a humane alternative to an economic system that has disastrous social and environmental consequences for the developing world. Consider changing your own purchasing habits and ask your employer to jump on the wagon. Then go to bed at night knowing that more farmers got a fair price and more families are living a better life.

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