In 2000 there were hundreds of anti-Starbucks protests staged across the United States. Starbucks was targeted by fair trade activists who were enraged by the profitable company's buying habits, which left their producers in poor countries barely able to eke out a living.

In these demonstrations, protesters called Starbucks the "the evil empire" and tried to shame them for their exploitation of poor farmers in the name of corporate greed. They demanded that Starbucks join the Fair Trade movement.

In a strange turn of events it seems the protesters got exactly what they wanted. The ‘evil empire' now has fair trade stamped on its coffee! Starbucks is part of a growing trend as more and more large corporations are calling their products "fair trade". In the past year Nestle, Proctor & Gamble, Dunkin' Donuts, and now Walmart's Sam's Club have all decided to produce fair trade lines of coffee. But this raises the question: are the protesters satisfied with their corporate lattes? More importantly, do coffee farmers stand to gain from Corporate America's sudden embrace of Fair Trade?

Unlike the term "organic" which is regulated by the United States Department of Agriculture (USDA), the labeling of a product as "Fair Trade" does not have a strict definition or certification process.

The term ‘Fair Trade' has come to be interpreted differently by different companies. Unlike the term "organic" which is regulated by the United States Department of Agriculture (USDA), the labeling of a product as "Fair Trade" does not have a strict definition or certification process. In reaction to this, TransFair USA, a non-profit, non-governmental organization introduced itself in 1999 as one of the strongest voices in the fair trade movement. They offered a standardized certification process and label to producers and consumers. They also whittled down their definition of fair trade to a few core requirements: fair prices for farmers, decent living and working conditions for workers, workers organized as democratic decision-making bodies like co-ops, and farming done using sustainable growing practices. Along with offering certification, TransFair launched a huge marketing campaign to promote sales of certified Fair Trade products. In the past few years public awareness of fair trade issues and product sales have seen amazing growth.

TransFair measures its success by their products growing popularity. It tells wholesalers that certifying their product with a TransFair label is a great way to tap into the booming market for specialty coffee. According to TransFair promotional materials the certified fair trade market grew 53% in 2003, and continued to grow by 20% in 2004. TransFair prefers to tout their success in sales and not in terms of actual improvements in the quality of life of the farmers that produce the coffee. It should come as no surprise that a company preoccupied with market growth would gladly join forces with the large multinational corporations who are concerned with increasing sales.

TransFair USA has come up with a definition of fair trade with just a few core requirements: fair prices for farmers, decent living and working conditions for workers, workers organized as democratic decision-making bodies like co-ops, and farming done using sustainable growing practices.

In 2002 the price of coffee dropped tremendously on the world market, forcing some farmers to sell their coffee for less than it cost them to grow the beans. With free trade and fierce market competition it seems that even coffee wholesalers like Nestle began searching for a more stable pricing scale, which is offered by TransFair certification. Companies like Starbucks claim they are selling fair trade products to appease their occasionally riotous consumers. But many cynics believe these large corporations are simply trying to protect them selves from falling coffee prices.

Just before the global marketing campaign of TransFair was launched, an alternative fair trade movement had begun. This political movement was started on a small scale by wholesalers, like Larry's Beans, who describes fair trade as "more than an equitable way to buy fantastic coffee from farmers who put their hearts and souls into growing it - it was an alternative economic model," and even "a way to connect people from all corners of the world." Small scale roasters in the United States formed direct relationships with the farmers' co-ops that provided them with green coffee beans. Those involved looked at fair trade as a way of empowering producers, (since consumers already have buying power), and shifting money from rich countries to poorer countries. These alternative coffee roasters and farmers consider themselves to be dealing in "fair trade" regardless of TransFair certification.

The small roasters who tout their product as being 100% fair trade now wonder what will happen to their sales as they begin to compete with multinational corporations who dabble in fair trade. Many complain that businesses like Starbucks can call themselves "fair trade" while only 1 to 2% of their coffee is actually fair trade certified. Others worry about what will happen when fair trade is no longer a hot topic and big producers decide to move on to some other trend in novelty coffee. During the 2005 Future of Fair Trade Conference the leaders in the industry were divided. Some sellers welcomed the increase in fair trade sales. They hoped to ride on the coattails of what they expect to be an expensive marketing campaign launched by corporate coffee to promote their new ‘socially conscious' line. Others who consider themselves purists decided to break away from TransFair USA and a certification process they no longer believe marks an alternative to traditional trade.

Many hope that as the fair trade spreads consumers will start to think... "If this coffee is considered fair trade what is my chocolate, cereal, gasoline, clothing,... are they unfair trade?" and they will start to seek out more alternative products.

If current figures in market growth continue, fair trade will continue to grow in popularity within the United States. The effect of a growing number of "Fair Trade" consumer options is yet to been seen. At this point the Fair Trade movement is still relatively young and even dedicated companies that work directly with farmers in other countries have had difficulty measuring the effect fair trade has had on the local farming communities they hope to aid and empower. The biggest change has been in the level of awareness consumers are being encouraged to have. For decades most Americans have bought products without considering where they came from or how the global economy which brought them cheaper prices effects the producers on the other end of the economic spectrum. At this point, changes in farming communities are slow to develop, and many hope that as the fair trade spreads consumers will start to think... "If this coffee is considered fair trade what is my chocolate, cereal, gasoline, clothing,… are they unfair trade?" and they will start to seek out more alternative products.

For More Information on Fair Trade Issues see:
The Fair Trade Federation
TransFair USA





Article contributed by Sarah Miller, a recent graduate from the University of Wisconsin, Madison. She currently lives, writes, and drinks coffee in Chicago, Illinois.

To read another Global Envision article a fair trade business, see Kenyan Honey Produces Sweet Prize for Poor Families.



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