The Life of a Fair Trade Coffee Bean
-an Ethnography by-
Matt Altstiel, ANTH3212 Final Project
December 16, 2005
This class, Globalization, Markets, and Inequality, has taken us across the gamut of corrupt market values and exploitation to paint a pretty gloomy world view and generally make us feel pretty guilty about our high standard of living as Americans, leapfrogged on the backs of the poor. Everywhere in the world, traditional agricultural practices and open-air, small scale markets have been replaced (often stamped-out[1]) by massive industrial and commercial enterprises. But in the following Ethnography, we examine one example of an alternative market strategy and realize, in this age of globalization, that there can be hope for fair international trade.
We have chosen to examine the Fair Trade Coffee Industry – the American affinity for coffee is indeed almost as great as its affinity for oil. The geographic area covered by this Ethnography is on the scale of the
An Introduction on Fair Trade
Imagine yourself as a coffee grower in the fertile costal region of
Free trade theorists often equate economic openness with economic success. In theory, the elimination of tariffs and other economic barriers leads to higher efficiency and profitability. Under this theory, the wealth generated by those at the top, (top corporate executives or large shareholders) will disperse through to all sectors of the economic ladder. The same is considered true for nations.
It is in direct response to aforementioned situations that the challenge of free trade emerged in the 1980’s. During the global recession of the early 1980’s, free trade organizations forced many countries into painful economic restructuring with long lasting consequences. The free trade strategy, “relying on unbridled free-market forces and export-led growth [has] devastated the unprotected – poorer, more vulnerable groups and the environment” (George 213).[2] Among the most vulnerable groups are traditional farmers and local markets, who were quickly overtaken by large scale, profit-driven methods, which resulted in widespread population displacement. Displaced people could return to the land they had worked and used for centuries, but only as landless laborers. Real wage decreases, the rollback of social services, and increasing economic inequality led many to the superiority of free trade policy. The first Fair Trade organization (Max Havelaar) emerged in
In order to mount a viable challenge to free trade, Fair Trade proponents developed an economic strategy and an ideological basis. Fair trade advocates sought to empower those disadvantaged by free, global market capitalism. The elimination of global poverty and earth-conscious development were seen as primary goals. According to the 2003 Report on Fair Trade Trends, key principles included: “gender equity, transparency and accountability, capacity building, payment of a fair price, working conditions, and environmental sustainability” (2003 Report 4). By eliminating packaging and branding costs, farmers and small scale producers could receive equitable compensation and a living wage for their output. Creating greater economic freedom would enable communities to encourage environmental and cultural preservation. To carry out such policies, non-profit free trade agencies were created to link suppliers with consumers. As linkages become more established, the supply as well as the demand for Fair Trade products has soared.
To achieve Fair Trade’s ideological aspirations producers and suppliers have to meet certain criteria. In order to garner Fair Trade status, producers and suppliers must submit a formal application to the Fair Trade Labeling Organizations International (FLO). “Labor standards, environmental standards, stable pricing and other social premiums” as mandated by the FLO must be met before a product may be Fair Trade certified.[5] In addition to international certification, local producers and suppliers must comply with national regulations to achieve national Fair Trade certification. Currently, “there are around 400 certified producer organizations representing 800,000 families in 45 countries, and over 550 companies licensing the FLO Fair-trade label.”[6] Such certification has ensured the high-quality products and the social justice promised by the founders of the movement.
The first official Fair Trade commodity, coffee, has also historically accounted for the largest share of Fair Trade produce on the market. Fair trade coffee first entered the markets of the
We now take a look at where it all begins: where the Fair Trade Coffee Bean is born. We also examine a cooperative that connects the
More Than a Cup of Coffee
Joe learns about Miguel’s farm, planted with coffee the old way, under shade trees that offer natural protection to the plants, filtering the sun and the rain, feeding the soil and preventing erosion. Not to mention attracting birds that come to sing over the cherries.
That makes for better coffee, Miguel explains. When a bird sings to the cherries as they are ripening, it is like a mother singing to her child in the womb. The baby is born with a happy soul.
The shaded coffee will put that song inside you, Miguel continues. The sprayed coffee tastes just as good if you are tasting only with your mouth. But it fills you with the poison swimming around in that dark cup of disappointment.
So why doesn’t everyone farm coffee in the old way? Joe asks.
The new way you can plant more coffee, you don’t have to wait for trees, you can have quicker results, and you can have more money in your pocket… La compania has the Mercado, Miguel explains. If we work for them we will get 80 pesos a day, 150 if we are willing to spray poison. I get 35 pesos for a caja of beans, Carmen can pick two cajas a day. It takes three years for me to get a coffee harvest. On the plantation, with their sprays, they have coffee in a year.[7]
This is the choice that underlies the efforts of the Latin American coffee growing families in Julia Alvarez’s short novel, The Cafecito Story. It is the same choice that underlies the international movement for “Fair Trade” which, according to Alvarez is “the living reality for half a million coffee farmers around the world” and is an “efficient and profitable trade organized with a built-in commitment to equity, dignity, respect, and mutual aid.”[8]
These are precisely the qualities driving the small west-central Wisconsin cooperative members of “Farmer to Farmer” as they work to market, distribute and sell the coffee grown by their friends from
Speaking with one of the Farmer to Farmer cooperative members, Robbi Banam, who, along with her husband and 3 children, runs a sustainable farm and brick-oven pizza business, she told me she was too busy to explain all the details about the coffee she sells. Instead, she handed me the small, beautiful book, The Cafecito Story and said all was explained there. She also gave me a newsletter and told me to call Jody Slocum, one of the Farmer to Farmer board members, for more information; but she told me to hurry because Jody was leaving for a visit with their friends in
Reaching Jody by phone that night she explained to me that the cooperative was founded by a few small farmers in west-central Wisconsin who were searching for ways to maintain their rural lifestyle in the late 1980’s, after the 1985 farm bill debates[10] and as the U.S. small farm economy deteriorated. They turned to the people of
Five years ago the Guatemalan farmers convinced the cooperative members that the coffee project could help them keep their sustainable farms, and not lose them to a monoculture based on chemicals and dense plantings. At first the
Therefore, the biggest cash stimulator for the many projects undertaken by the cooperative (such as assisting with building a new weaving studio, sharing information about community supported agriculture and lobbying the US Congress against CAFTA) has been the Farmer to Farmer Fair Trade Coffee project. By roasting, marketing and distributing the coffee beans from the Tsu’tujil Mayan families of
The cooperative intends to continue marketing the coffee, although the board recently decided they are going to have to begin paying two U.S. members a small salary of $60 per week to keep up with the growing business. The packaging and roasting costs are kept to a minimum by using artwork from the Guatemalan village and from Jody’s aging computer and printer. Distribution points continue to increase as word of mouth spreads the cooperative nature of the coffee product (and its excellent flavor) throughout small, and not-so-small,
Farmer to Farmer French roast, medium roast and espresso roast are not simply consumer choices printed on a package of coffee beans. These choices have become synonymous with participation in community, in caring for the earth, and in commerce among friends.
And like the product itself, information was shared easily with me and was not difficult to glean from the people involved in this project. There was no “point of exclusion” when I asked people about the coffee, how it was produced, or why they bought it. The flavor was exceptional, and more importantly, they tasted it with more than just their mouths. The openness of the cooperative and the willingness of members to share information is all part of the reason that Farmer to Farmer exists. And, as Jody explained when I thanked her for her time, “the coffee is only a portion of our group’s activities. We are really all about human interactions – friendships based on sharing relationships with respect for each other’s choices.”
As for me, I prefer Farmer to Farmer French roast to the other two choices. The coffee is very good indeed; especially now that I can taste it with more than my mouth – and my membership dues are in the mail.
Now we look at another cooperative, in the heart of the Twin Cities:
Since 1971, the North Country Co-Op, located just off campus, has been providing organic, locally grown, and Fair Trade alternatives to the Cedar-Riverside neighborhood. It is located very near to the
It is easy to manage fair exchange on the scale of local agriculture, but transcending national boundaries can be a slightly more sticky matter- naturally, it is impossible for North Country or any cooperative to purchase directly from growers without dealing with intermediaries, so it is in these intermediaries that North Country must be selective if they are to stay true to their commitment of sustainable, fair, and environmentally-conscious products.
I was unable to get a direct interview with a North Country employee, but I was instead encouraged to send my questions via e-mail, and, in response, learned that the Co-Op buys coffee primarily from American roaster/distributors such as Peace Coffee and Equal Exchange, who have direct relationships with grower cooperatives in South America, Africa, and Oceania, and are able to reduce their own costs by eliminating middlemen and, at the same time, offering a living wage to the farmers.
North Country Co-Op, as well as the Equal Exchange and Peace Coffee Co-Operatives, are not outside shareholder owned – in the spirit of Fair Trade, ownership is shared equally among managers, Boards of Directors, employees, and farmers. At North Country Co-Op, there are only two wage tiers: part-time employees and full-time employees, and decisions are made by a worker-elected Board of Directors. Equal Exchange maintains a strict 3 to 1 maximum wage ratio for its managers and employees, and the board quite democratically consists of six members of the worker-owners and three outside members.[12]
The Equal Exchange Cooperative, founded in 1985, was one of the first Fair Trade cooperatives in the world. It works with 28 farmer cooperatives in 14 developing countries, most notably
Peace Coffee was established in 1996, and exchanges primarily with Nicaraguan, Colombian, Sumatran, Ethiopian, Guatemalan, and Mexican farmer cooperatives.
Aside from being equality conscious,
Throughout this course, we have examined the problems caused by globalization and the resultant market inequality. In case study after case study, the dismal truth seemed to be that these were the insurmountable results of trying to develop a global market – in this final Ethnography, there is a sense of hopeful resolution that there are, in fact, alternatives, and the answers lie in our backyards and on the small farms of the world- think small, and don’t taste only with your mouth and your pocketbook.
We now have a general idea of how Fair Trade Coffee is grown and imported to the Twin Cities area. Now we examine how coffee roasters figure in to the Fair Trade Coffee equation.
Bull Run Roasting Company
While Fair Trade coffee is on the rise, it still occupies a small percentage of the coffee market (STAT). To better understand this reality, it seems logical to find the break down in demand. Where is Fair Trade coffee passed up for other alternatives?
In an era were “Coffee, please” has been replaced with “Americano”, “Kenyan Light Roast”, "Sumatra", “Mochajava”, and “Christmas Blend”; the specialty coffee market is booming. “Specialty coffees are made from exceptional beans grown only in ideal coffee-producing climates. They tend to feature distinctive flavors, which are shaped by the unique characteristics of the soil that produces them.”[14] A local specialty coffee roaster was used as a case study in tracing the possible life of a bean.
Bull Run Roasting Company is a specialty coffee roasting and distribution company based in
Greg Hoyt is the president of Bull Run Roaster’s. Knowing Greg personally, I am aware that he serves on the board of a charitable foundation, and that for the last few years, he has been very active in significantly improving the conditions for a community of coffee growers in
Talking with Greg at his roasting company, the factors that dictated the company’s decision not to become Fair Trade Certified were clarified.
Secondly, Bull Run Roasting Company strongly stands behind their commitment to quality. The company’s philosophy states:
“We studiously select the best green coffee in the world, and, using all five senses - roast it with the greatest of care to the exact specifications. We have dedicated ourselves to providing the perfect cup of coffee, from the first sip to the last.”
Hoyt admits that today there are a lot more options when it comes to high-quality Fair Trade coffee today then even five years ago. Still, “there isn’t the same variety in Fair Trade coffee,” Hoyt argues.
Bull Run Roasting Company selects their coffees through a series of “blind tests,” that is, the coffee is taste-tested without knowledge of the price or specific origin; the choice is made completely on the basis of qualities of the coffee’s taste.
Hoyt also expressed hesitation to sacrifice some of the company’s autonomy. He explained his reluctance to allow an organization to decide how much of a particular type of coffee he could buy or be subjected to unannounced inspections by TransFair
Hearing these concerns, I was curious as to what was the volume criteria set for specialty roasters. TransFair
Learning this information I was surprised for two reasons. First, I anticipated that the percent of coffee that was committed to Fair Trade by a Fair Trade Certified Roaster would have significantly higher required levels, or at least required levels. As a consumer, when I have seen Fair Trade coffee advertised, I have assumed that it was primarily Fair Trade coffee, if not entirely. The reality that a product could carry that stamp of certification and consist of only 1% Fair Trade coffee seems like a misrepresentation or false advertising.
I was also surprised that, with certification levels this low and so seemingly lenient, Bull Run Roasting Company would have much objection. Hoyt clarified that he is all for fair prices for farmers and responsible business practices; however, he does not believe that Fair Trade Certification is the only or best way of doing this.
Hoyt explains that it is not his desire to pay lower prices that prevent
“With his company Bull Run Roasting Company behind him, Greg went to
Hoyt made it clear that he is in no way against the work being done through Fair Trade certification, he simply does not see it as the only route to fair business practices within the coffee industry. “To me, [the Rwandan cooperative] is a better way to spend my money,” Hoyt said.
Hoyt believes that the specialty coffee industry does not have the same market situation as lower quality coffee. TransFair, on their Fair Trade website, describes “warehouses around the world bulging with unsold coffee, pushing prices for coffee far below what this beautiful product is really worth,” while “hardly a coffee drinker will start drinking more just because the price of coffee has gone down.”[18] Jeremy Brecher and Tom Costello, in their book, Global Village or Global Pillage, argue that similar situations are taking place in different markets all over the world as a result of a flawed market economy. They argue that as entities strive to be “more competitive,” wages, society, the environment, and standards of living are left in ruins in the aftermath. The constant struggle to lower production costs results in what Brecher and Costello refer to as a “downward spiral.”[19] Many of the problems that have arisen have been due to the over-production of coffee, particularly in countries like
The specialty coffee industry is characterized by much greater level of competition in the pursuit of higher quality. TransFair reports that world market prices for coffee have fallen to forty-five to fifty cents per pound.[20] Hoyt reports that, on average, he pays between $1.15 and $2.00 for a pound of specialty coffee.
It was also of interest to learn that Bull Run Roasting Company is currently starting their own foray into fair price coffee – fair trade coffee that they stand behind rather than TransFair. The new line is called Farmer First[21] and is currently distributing primarily to churches in the metro area.
At the conclusion of my visit to Bull Run Roasting Company, Hoyt explained that with all the justifications he had given for not becoming Fair Trade Certified, if there was demand [he] would become Fair Trade Certified. “We are a small business” and Bull Run Roasting Companies ability to meet the demands of their customers will shape the future of their business.
The Consumption and Availability of Fair Trade Coffee in Restaurants
Sixty-four percent of the adult population in the
Venturing out into the restaurant world was not as helpful as I had hoped. I visited ten different restaurants, and most of the people that I talked to were less than thrilled about the subject. Workers were often reluctant to bother managers with my questions, yet trying to set up an appointment did not work either, because there was never a good time available for this sort of thing. Thus, most of the information that I gathered was from employees, so it was limited to things like what brand of coffee the restaurant sells and how much it costs per cup. Finally, many of the workers and managers that I talked with had never heard of Fair Trade coffee, so they must not get many questions about it from customers.
The Hard Times Café was the most helpful place that I visited. They not only sell Fair Trade coffee, but they have a huge advertisement for it on the window and in their newspaper ads. Since this restaurant only offers Fair Trade coffee, I was not able to make a comparison between the consumption of Fair Trade and non-Fair Trade blends. The manager at this restaurant said that people seem to really appreciate that the coffee is Fair Trade, and they can also appreciate that it only costs one dollar.
The Dinkytowner Café sells a cup with unlimited refills of White Rock Coffee for $1.85. The Loring Pasta Bar sells the locally roasted Morning Star brand of coffee for $2.00 per cup with unlimited refills. Both of the people I talked to at these restaurants did not think that their coffee was Fair Trade. The White Rock website explains that this coffee is roasted in
After looking at menus and talking to employees, I discovered that while a particular entrée might have a mouth-watering description and several options for personalizing the meal, coffee might not even be listed on the menu, let alone what brand it is or how much it costs. One other interesting thing that I noticed was that Perkins, Davanni’s, and Vescio’s, all sell McGarvey’s coffee, and the prices for an unlimited cup of coffee were $1.39, $0.95, and $1.85, respectively. The coffee sold at Davanni’s is the exact same as the coffee sold at Vescio’s, yet it is almost double the price. Finally, outside of Davanni’s, the Fair Trade coffee sold at the Hard Times Café is actually the cheapest cup of coffee I found. Thus with all of the price differences amongst coffee sold at various restaurants and the lack of information given, it would be hard for customers to notice whether or not they are paying more for a Fair Trade label.
Patrick De Pelsmacker, Liesbeth Driesen, and Glenn Rayp, wrote an article about the willingness of consumers to actually pay for Fair Trade coffee. They cited a study in which 46% of European consumers claimed to be willing to pay substantially more for ethical products. Unfortunately, they later discussed how buyer attitudes do not typically correlate to buyer behavior, particularly in the social marketing area. A survey of 808 Belgian respondents concluded that the brand was the most important attribute of coffee, the flavor second most important, and finally, the Fair Trade label came in third. This same survey demonstrated that 10 percent of the sample was willing to pay the price premium of 27 percent for the Fair Trade label in
The results from these surveys are backed by the following quote from C. Smith, a commentator on a TransFair USA study:
“Charity is not a strategy…While the current success of Fair Trade brands is laudable, it is the leaders in the field that are putting ‘desire’ ahead of charity and winning consumer preference…it’s so unlikely that consumers would ever be prepared to reframe a brand in their own minds from one that they feel they ought to buy to one that they actually want to buy.” Kristy Golding and Ken Peattie argue that in order to achieve the economic expansion of Fair Trade, “The promotion of the coffee brand will need to be balanced with the promotion of Fair Trade as a social proposition.”[27]
According to Naomi Klein, “The wealth of multinational corporations is a result of the idea that: successful corporations must primarily produce brands as opposed to products.” She also brought up that advertisers have typically tried to distance products from production, which is the opposite of what Fair Trade is all about.[28] This separation between products and consumers was also described in The Travels of a T-Shirt in the Global Economy, by Pietra Rivoli. In this book, Pietra describes how surprising it was to find out how many different places were involved in the production and selling of one plain t-shirt.[29] It is equally unlikely that coffee consumers are aware of where their coffee has traveled from.
[1] Shiva, Vandana. 2000. ‘The Hijacking of the Global Food Supply’ from Stolen Harvest.
[2] George, Susan. The Post Development Reader.
[3] http://www.globalexchange.org/campaigns/fairtrade/coffee/faq.html, 12/01/2005
[4] Morris, David. Free Trade: The Great Destroyer.
[5] http://en.wikipedia.org/wiki/Fairtrade_labelling, 12/03/05
[6] http://en.wikipedia.org/wiki/Fairtrade_labelling, 12/03/05
[7] Alvarez, Julia. 2001, A Cafecito Story: Chelsea Green Publishing Company, White River Junction,
[8] Ibid. p.47.
[9] Aristide, Jean-Bertrand, 2002. “Globalization: A View from Below>’ In Rethinking Globalization. Bigelow, Bill and Bob Peterson, eds.
[10] Ahn, Christine. “Farmers.” Shafted: Free Trade and
[11] “Farmer to Farmer: a
[12] http://www.equalexchange.com/worker-owned/
[13] https://www.peacecoffee.com/organic
[14] Specialty Coffee Association of America, http://www.scaa.org/what_is_specialty_coffee.asp
[17] http://www.christianitytoday.com/music/artists/saragroves.html
[18] http://www.fairtrade.net/sites/products/coffee/why.html
[19] Brecher, Jeremy, and Tom Costello. 1998. “Race to the Bottom”, Global Village or Global Pillage. South End Press.
[21] http://www.farmerfirst.org/
[22] The National Coffee Association of the
[23] The Global Market Information Database. “Coffee in the
[24] White Rock Coffee Roasters. Store Software. Copyright 2003. http://www.whiterockcoffee.com/cafe.html.
[25] Morning Star Coffee. http://www.morningstarcoffee.com/.
[26] Pelsmacker, Patrick, Driesen, Liesbeth, and Rayp, Glenn. “Do Consumers Care about Ethics? Willingness to Pay for Fair-Trade Coffee.” The Journal of Consumer Affairs. Vol. 39. No. 2. Pp 363-383.
[27] Golding, Kristy and Peattie, Ken. “In Search of a Golden Blend: Perspectives on the Marketing of Fair Trade Coffee. Sustainable Development. Vol. 13. Pp. 154-165.
[28] Klein, Naomi. 2002. No Logo. “Chapter 1: New Branded World.” And “Chapter 15: The Brand Boomerang.”
[29] Rivoli, Pietra. “Preface.” The Travels of a T-Shirt in the Global Economy: An Economist Examines the Markets, Power, and Politics of World Trade. John Wiley and Sons, pp. vii-3.
No comments:
Post a Comment