A Grower’s Perspecitve on Fair Trade Coffee

Several days ago, Scot McKnight posted about the merits of fair trade coffee. During the discussion, a commenter named Edwin Martinez offered his insights. Good stuff!

Comment 24

 

Disclaimer. As a third generation coffee grower I grew up in Guatemala and now live in the United States much of the year selling our coffee direct to roasters around the world.

I have spent some time in every link in the chain from seed to cup and have a great respect for Fair Trade and the positive impact it can have. I would like to see more FT coffee in certain areas, but the reality is Fair Trade is more fair in some areas than others as it is a global average paid to farmers around the world who have greatly varying costs of production.

I we have neighbors in the highlands of Huehuetenango that have been in FT coops and at times they have appreciation for it and other times they desperately want out as they see those not locked in an FT contract coming out ahead. One point to realize is FT does stipulates little about quality and in my opinion this is a fundamental component of a sustainable supply chain. If it is driven by other value added than it becomes dependent on that other added value. So for example if FT consumer market ever feels less benevolent and demand flattens out or decreases, then the FT grower now is left with less competitive advantage in the open market as he has gone for years being awarded a price not connected to quality. Incentive to produce a competitive product based on quality is gone. Thus he is literally left with a product that is WORTH-LESS than before FT entered his/her life.

That being said I find FT is a great match where quality is capped, AND there is NO BETTER ALTERNATIVE, such as other crops or any other form of work that would offer a better return.

I think if one wants to be responsible with how you spend your coffee purchasing dollars, you do the best you can. If it is FT and you don't know any better, GREAT! FT will naturally find more success in areas were it is truly a good match. Places where FT is not a good match will likely eventually migrate to what is a better option for the growers.

In my opinion there are better options. As a grower I know there is great sense of reward in knowing someone genuinely appreciates and values our product for it's inherent quality, and that people pay a good premium not because they like us, our story, feel charitable etc… but because they like the quality. This to me is ideal sustainability. This means if some day a customer decides they don't like us, but they blindly prefer our coffee, we have a good product that they will continue buying and if not someone else will even if they're not feeling charitable.

So where does this leave you as an end consumer? Do as much homework as you feel burdened to do and make the most responsible decision you can. Better alternatives are often hard to find as there is a lot of seemingly comparable programs out there, however being much smaller than FT there is generally less accountability which requires you to have more trust in the integrity of the program. the cost of accountability is quite high. In a perfect world end consumers would be more educated about quality, and their purchasing dollars would strongly line up with quality driven supply chains. Quality comes at a cost. To produce a great cup requires thing being done right in every step which over time with globalization and increased technology and transparency means people become fairly rewarded for working hard and doing a good job.


Comments

10 responses to “A Grower’s Perspecitve on Fair Trade Coffee”

  1. I like the honesty of this. Fair Trade is fine in some cases but don’t buy it unless the quality deserves it. There are certain economic engines that cannot be ignored if we are to develop sustainable fairly traded goods.
    I often find that products offered at Fair Trade sales are not worth anything like the price being asked. When this is the case a simple hand out would be of better use than trying to convince a local artisan that their work is good enough to command this price in the open market. That’s simply a deception perpetrated by do-gooders with a little extra cash.
    Sustainable fair trade based based on the open market system of supply and demand is needed to have lasting effect.

  2. This is a good topic. Our church notes that it serves “FT” coffee, and offers it for sale during the year-end Market.
    I think that most of the people who buy it, do so mainly because they “feel it’s the right thing to do”. And maybe because they think the other kind is grown on plantations where stewards beat overseers and overseers beat poor peasants if they don’t pick their quota of beans.
    We don’t grind our own, so it’s more of academic interest. But our church (and we’re probably not alone) accepts the image of FT.
    Has anyone recently done a taste-test between FT and “UnFair Trade” coffee?

  3. I don’t drink coffee at all and I really don’t want to know how either type of coffee tastes. 🙂
    I hate be a wet blanket on people who are jazzed about the FT coffee because I think most folks genuinely desire to help. I’m just not convinced that FT is all that helpful.

  4. Fair Trade is good. It seems relevant to support Fair Trade where you are certain of the social, economic, and environmental practices; however I think it goes without saying that we the consumer can rarely rest assure that these practices are top notch.
    This is why I try to support Direct Trade coffee vendors, who themselves check out the practices and do not simply rely on the Fair Trade seal of approval.
    I personally live in Scranton, PA, and here in Scranton we have a coffee importer/roaster by the name of Electric City Roasting. This company also has to local cafes which sells this coffee. Anyways, the owner of this company goes directly to coffee farms and checks out their practices herself. If she deems them to be above the Fair Trade standard she then decides to purchase from the farm. And it is this, that is known as Direct Trade.
    From the consumer perspective, I there again can not ensure that the practices are perfect, but I can at least see the farm and staff via the pictures that adorn the cafes, and it seems to be a bit more traceable than even Fair Trade can purport.
    So check out Direct Trade vendors, and look into http://www.electriccityroasting.com …. There great!

  5. It seems like FT items are based on falsely inflated prices. The real need is to find goods that there is market for so they can be sustained for the long run.

  6. Peter, you hit on one of my worries. In some cases FT can become a subsidy for the grower to continue what they are doing rather than adjust to the market.

  7. The idea that Fair Trade is based on falsely inflated prices means that the market mechanisms will eventually catch up and like our housing prices the house of cards will fall.

  8. Like gravity, markets do have a harsh way of snapping us back to reality, don’t they? 🙂

  9. Right Neil — because Fair Trade is trying to solve the fact that there is too much coffee supply on the world market. Once people decide to quit propping up that market it will collapse.

Leave a Reply to Michael W. KruseCancel reply

Discover more from Kruse Kronicle

Subscribe now to keep reading and get access to the full archive.

Continue reading