FAIR TRADE What is fair trade and how

FAIR TRADE What is fair trade and how does it effect small scale farmers Sunday, December 21, 2008

Outline • • • Coffee Facts Coffee in Canada What is Fair Trade? Supply Chain Comparison Where does coffee money go? Coffee Price History Conditions of certification How does Fair Trade Certification Work? Effects of Fair Trade – For the farmer – For the consumer – Case Study

Coffee Facts • • 2 nd most traded commodity in the world Top 10 coffee producing countries: 1. Brazil (31%) 2. Vietnam (15%) 3. Colombia (11%) 4. Indonesia (5%) 5. Ethiopia (5%) 6 -10. India, Peru, Mexico, Guatemala, Honduras (17% total) • 2 Types: – – High Quality Mountain grown Arabica Lower Quality Robusta beans Source: International Coffee Organization, 2007

Coffee in Canada • 81% of Canadians drink coffee occasionally • We consume on average 2. 6 cups per day. Canadians consume 31 billion cups of coffee a year on average • 18% of total beverage consumption • Consumer Awareness: • 51% organic • 38% Fair Trade Source: Canadian Coffee Association (2003, 2997)

What is Fair Trade? • It is a certification that guarantees certain production and trade conditions • Fair Trade products sold in Canada (Coffee, Cocoa, Tea, Banana, Cut Flowers, Cotton, Shea Butter, Sugar) • “Fair trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade…” (Fair Trade Labeling Organization, 2008)

Conventional Trade Supply Chain and the Fair Trade Approach Conventional Trade Retailer Distributor Roaster Fair Trade Approach • Multi Level supply chain • Coffee changes hands many times Roaster Importer Broker Exporter Transporter Local Farmers Retailer Importer • Reduced involvement of middlemen • More money for Farmers Cooperative Local Farmers

Where does the Coffee $$ Go? Conventional Coffee Fair Trade Coffee EWB Fair Trade Coffee Workshop Source: http: //www. cbc. ca/consumers/market/files/food/coffee/whogets. html

Coffee Price History Source: International Coffee Organization

Conditions for Fair Trade Certification • • • Farmers create democratic cooperatives, Standards for hired labours No forced or child labour Must adhere to health and safety standards Implement programs to improve environmental sustainability

Certification Process Producers FLO Importers Licensees (Processors) Retailers Trans. Fair Canada International EWB Fair Trade Coffee Workshop Consumers

Effects on the Grower and Community • Farmers become empowered because of the democratic cooperative • Ensure price covers cost of production and cost of living • Social premiums towards community development • Access to credit (up to 60% of purchase price) • Long term commitment from buyer • Environmental protection because of sustainable farming methods that are mandated • Education and capital to help diversify crops to reduce dependence on coffee only

Effects on the Buyer • • Feel like part of a larger movement Make a connection to farmers Drinking higher quality coffee Help lift farmers in developing countries out of poverty EWB Fair Trade Coffee Workshop

Case Study ACOC, Colombia (Asocacion de Caficultores Organicos de Colombia) • Co-op Established: 1992 • Year Certified: 1994 Case Study and pictures courtesy of www. transfairusa. org EWB Fair Trade Coffee Workshop

Case Study ACOC Community Improvements: Education: • 5 university technical scholarships / year • Provides primary and secondary school supplies Productive Investment: • Purchased new processing equipment EWB Fair Trade Coffee Workshop

Case Study ACOC Community Improvements: Environment: • Pest control and fertilization education • Assisting the transition to organic production Health: • Economic support for emergency medical care, housing improvements and disaster relief EWB Fair Trade Coffee Workshop

What can you? Step 1. Know about Fair Trade. Identify the Transfair logo and know what the term “Fair Trade Certified” means. Step 2. Connect with a Farmer Understand how your choices affect a farmer in a developing country. Step 3. Buy Fair Trade! Support a developing country farmer by buying Fair Trade coffee, tea, sugar, chocolate etc.

Where can I get Fair Trade Products? • Got to http: //www. playyourpart. ca for an interactive map of locations in the Ottawa Area. • • Bread and Sons Bridgehead 10, 000 Villages Francesco’s Coffee Green Door Restaurant Human Beans Coffee Company. . etc.

Thank you! For more information: Check out websites of • www. playyourpart. ca • www. ewb. ca • Transfair Canada • Oxfam International