The impact of fair trade coffee designation on growers essay
“Can a trade that rewards its producers so little,
that preys on their poverty in this way,
be anything other than contemptible?”
Ransom, “What’s Brewing”.
There is no doubt that the fair trade brings the benefits for the farmers and producers, because under fair trade conditions the price of goods is higher and therefore the farmers’ revenues are higher as well and it means more opportunities for them in terms of both production of the better quality products and also of course better social perspectives. The coffee producers are not an exception; the majority of these farmers are from the developing countries, that is why this kind of regulations is especially crucial for them.
The concept of fair trade
Weber (109) indicates that fair trade is the concept of international trading relations, whose major principles (the basis of the partnership) are dialogue, transparency and respect. The advantages of the fair trade in general include the following: minimum price that covers the cost of production, decent working conditions; long term trade relation that allows proper planning and maintainable production practice; higher quality of products. Besides it, there are a number of benefits for the farmer’s families, for instance: more payments for a better quality of goods, better health care and education and also training and skill development for farmers and their families.
The major reason of the fair trade creation is the realization that the trade is often unjust to the farmers and they have to inequalities and unfair conditions. Therefore, it could be said that the concept of fair trade is a sign of the democratic and economic progress. But fair priced products require not only the special regulations but also the new kind of the consumer. This consumer will adopt the fairly priced products as a sign of respect to the product producers and as a confirmation that the product or services were produced for the true benefit all parties. (Stiglitz & Charlton, 41-85)
Fair trade in the coffee industry
According to Height (72) the fair trade in terms of coffee production draws consumers to the attention to the problems of the coffee growers in developing countries.
A coffee in your cup may have its origin in many regions, for instance, it may be grown in Brazil, Colombia, Vietnam, or in many other countries. Basically it may be perceived as the manifestation of globalization (Pendergrast, N.A.) because for a very long time it was n grown by the producers from the tropical countries but consumed all around the world. It should be indicated that the share of the free trade coffee is only few percent in comparison to the overall volumes of produced volume of coffee beans, but it is constantly growing, mainly because of the social responsibility trend that is being adopted by the consumers in the recent years.
The process of the fair trade for the coffee industry forms the new relations between coffee growers and coffee drinkers. The scheme usually looks like this: the coffee is bought by the importers from the individual farmers and the farmers receive the guaranteed minimum fair trade price. These relations exclude the middlemen who previously received the large amount of profit for their services. At the same time these relations between fair trade importers and the individual farmers become long-term, dependable and respectable; this guarantees the stable income, and higher returns for these producers and in general guarantees the receipt of the receipt of the wage sufficient for living. (Ransom, N.A.)
What kind of advantages fair trade is able to provide the producers with? It supports the principles of sustainable development by ensuring that the conditions of international trade are fair for all the producers and specifically for the farmers from the developing countries and the South America (in the context of coffee production). (Ransom, N.A.)
The important element of these fair trade relations is the low-interest loans and credits that may be provided to the coffee producers by the importers which actually will help the farmers from developing countries to avoid the unattractive debt conditions of their local lenders. (Ransom, N.A.)
Another substantial advantage of the fair trade relations is the new opportunities for the individual farmers to create the co-operatives on order to produce and sell the coffee. These co-operatives are managed on the democratic basis and the income is shared among their members. Besides it, the fair trade has an indirect but very important influence on the infrastructure and the quality of the communities whose major business if coffee production, because it results in the improvements of medical care, schools and agricultural training. (Ransom, N.A.)
In terms of education the fair trade regulations allow the communities who form the fair trade co-operatives invest the money into construction and repair of local schools (it is especially an important factor in the cases when schools are too far away or too expensive in certain areas). Therefore, the fair trade conditions help farmers to their children to school and buy the necessary books and equipment. (Weber 110)
In the health aspect, the fair trade regulations may consequently result in the improvement of the health care services for the farmers and their families (it is also critical when farmers live in the remote areas, too far health centers) (Weber 110)
Concerning the standard of living, it should be said that usually the standards of living are relatively low in the coffee growing areas (for instance, in South Africa) and the additional money received by the adopting the fair trade relations allow to build new housing and facilities for their villages and brought new hope to communities. (Weber 110)
Besides, the water supplies issue, which is a vital living condition for the remote areas, where many of the coffee growing farmers live, may be improved by the improvement of basic constructions and pumping facilities for the money received from the fair trade agreements.
And also, there is another aspect that I would like to mention as well, the disaster recovery. It is a very important advantage that is received in the result of these additional incomes received for the fair trade agreements, because with these money provide the growers are able to recover quickly and more easily from the floods and hurricanes.
Also, there are definite advantages for the environment, because these new regulations of coffee production lead to the better protection of the environment in the developing countries. It should be indicated that the mountainous areas with a lot of trees are the most suitable conditions for the coffee beans growth. On the contrary to the traditional farmers, the fair trade farmers usually oblige to avoid the usage of pesticides, herbicides, or chemical fertilizers and also there is a confident trend of their commitment to the organic farming. In the result of these positive changes into the procedures and considerations of the farmers, the environment is in safety and the biological diversity and the birds (who often suffer from the pesticide use) are safe.
Ethical consideration is the most significant concern of the fair trade coffee industry. The certifying organizations have to check many factors in order to ensure that the ethical requirements are met by the producers and importers.
The coffee trade sector includes the producers, distributors, supermarkets, cafeterias. I should note that the Fair Trade coffee is certified by the FLO-Cert (which is the certifying institution of Fair-trade Labeling Organizations International) and this kind of labeling allows the coffee buyers to distinguish the product buying which they will be able to make a contribution to the farmers from the developing countries. Weber (109) claims that it’s especially important for the growing markets of the coffee consumption, such as North American and Asian.
As it is stated by Ransom (N.A.) the producers of the coffee from various regions support the idea of Fair Trade because they understand the obvious benefits. It suits the best interests of the coffee producers: they earn more but at the same time they need to work harder in order to supply the coffee of the best quality that is grown in the environment friendly conditions.
The idea of fair trade is very old, and it has been around for many centuries. In the context of the coffee manufacturing industry, it plays a substantial role, and although it still accounts for only a small fraction of overall coffee sales, the market for Fair Trade coffee has grown markedly over the last decade, and purchases of Fair Trade coffee have helped improve the lives of many small growers. (Haight 72)
These fair trade policies that are aimed to respect the manufacturer and at the same time to improve the quality of the products, help not to exclude the coffee manufacturers from gaining the most financial benefit of the trade and support the manufacturing efficiency, and that is really important.
We should think about the inequalities that a farmer faces with and then think about the meaning of the relatively small sum of money (let’s say fifty dollars) in the life of the average American and average coffee producer from the developing country, for instance, Colombia. What does this sum of money means to Americans? It’s rather insignificant. But for the coffee growing farmers somewhere in the jungles of South America this money may have a tremendous meaning, they could mean survival. That’s why the issue of the free trade and its impact on the coffee growers is so important.
Of course, these policies aren’t ideal and there are certain concerns that the additional money (also known as premiums) aren’t received directly by farmers and also the quality of the Fair Trade coffee is not confirmed, but this new kind of ethical consumerism deserves the right to exist. (Ransom, N.A.)
