Fair Trade Demand to Increase?

An advocate predicts more cities and consumers
will begin to demand more fair trade products. Those
are goods imported from overseas that come from businesses
that pay workers a decent wage and operate in a more
environmentally-friendly way. Chuck Quirmbach reports:

Transcript

An advocate predicts more cities and consumers
will begin to demand more fair trade products. Those
are goods imported from overseas that come from businesses
that pay workers a decent wage and operate in a more
environmentally-friendly way. Chuck Quirmbach reports:


Something certified as fair trade means it was grown or produced in a foreign
country in an environmentally sustainable way, by workers NOT employed in
sweatshops. Paul Rice heads a major US certification group Transfair. He says
fair trade is catching on with consumers who don’t mind paying more for better
quality:


“That trading up phenomenon is already there, and I think what fair trade does is
help people think more about quality in more than just the taste of the product,
but also the impact of the product. I think what people are starting to think about who grows my food, right?”


Rice acknowledges only about twenty percent of US residents are drinking fair
trade coffee or buying other products, but he says the movement is finding its
way into more mainstream stores. Rice predicts more communities will soon pass resolutions promoting fair trade.


For The Environment Report, I’m Chuck Quirmbach.

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Interview – Greening the Business World

Some businesses once considered
‘bad actors’ by environmentalists are now being
praised for leading the ‘corporate greening’
movement. Lester Graham spoke with an advisor who
helped some of those companies, John Elkington.
Elkington is the founder of the consulting firm
SustainAbility. He says not all corporations have
realized the importance of becoming more
environmentally-friendly at the same time:

Transcript

Some businesses once considered
‘bad actors’ by environmentalists are now being
praised for leading the ‘corporate greening’
movement. Lester Graham spoke with an advisor who
helped some of those companies, John Elkington.
Elkington is the founder of the consulting firm
SustainAbility. He says not all corporations have
realized the importance of becoming more
environmentally-friendly at the same time:


JE: Around the world, different regions are in very different places
and companies are in different places as a result of that. In the
United States you’ve had a period of, to some degree on issues like
climate change, denial. And that’s beginning to break down, and it’s
breaking down very rapidly. So you see companies, for example in the
financial sector like Goldman-Saks, talking about the environment and
green issues in a very, very different way than they would’ve done a
few years ago.


You see General Electric, which hasn’t been a great ally of
environmental movement, launching it’s Ecomagination initiative. And
initially, people dismissing that very much as greenwash, but when you
look at the numbers, very serious growth going on inside that business
and some of these areas. And then, perhaps to top it all, you see Wal-
Mart, most peoples’ sort of bogey company in a way, announcing some if
its initiatives around renewable energy, energy efficiency, sustainable
fisheries and so on. And in a sense, it almost doesn’t matter whether
Wal-Mart is serious or genuinely wanting to go green or whatever. This
stuff is starting to cascade through the supply chain. They have 61,000
vendors, these companies around the world. And the work that we do with
companies, they’re saying, whether they’re 3M, or Dupont, or Dow…
they’re saying this company is serious and it’s driving us to do things
we hadn’t previously thought were possible.


LG: Let’s look at consumer level. I think typically, most people are
not spending a lot of time researching which brand of corn flakes is
most carbon-free or sustainable. I think most people make their
decisions on commercials or packaging at the store. How can they make
better choices about sustainable products or companies?


JE: You’re absolutely right. I think most people rely on things like
brands. I mean, they trust a brand or they don’t and they hope a brand
will deal with environmental or fair trade or whatever issues
appropriately. But there are certain moments when things start to speed
up, and this is one of them, and then a different set of actors come
in.


I mean, traditionally, the activist campaigning groups, the NGOs, and
so on, play an incredibly important role in denting brands or building
the credibility of particular brands. And increasingly you get these
standards around environmental and fair trade issues. But I think
actually the key actors at the moment – this is certainly true in
Europe and my own country, the United Kingdom – you’re seeing
supermarkets getting involved again. They did it in the late 80s, early
90s, they played a very important role. That has a huge knock on
impact.


LG: Let’s talk about the energy sector for just a moment. We’ve seen a
lot of renewable energy being built around the world lately. But we
seem to see a lot of power companies, some oil companies still digging
in their heels and fighting tooth and nail to keep things just the way
they are. Are we going to see a sea change in the energy sector like we
are beginning to see in many of the other sectors of the economy?


JE: That’s a very difficult question to answer because I think you’re
going to see several different trends at the same time. You’re going to
see for example, the coal industry, Peabody and people like that,
digging in and saying basically, we’re going to burn a huge amount of
coal. Yes it’s going to have to be clean coal but you’re going to have
that trend. You’re going to have the Exxon Mobiles of this world trying
to look a bit more civilized and say we’ve been misunderstood, we’ve
got to communicate better and so on… But basically still, anti-
climate change is a big issue.


And then you’ve got a bunch of actors. In Europe, you’ve got companies
like Statoil, BP, Shell, who’ve actually gone through that tipping
point quite a number of years back, basically believe climate change is
a reality… Still thing fossil fuels is a very large part of our
energy future, but still starting to explore renewables and energy
efficiency and so on. So I think you’ve got a differentiation and I
don’t think this is an issue of leopards changing their spots. I mean,
some of the companies that are finding this very difficult to deal with
will continue to find it very difficult to deal with even if they
become a bit more sophisticated on the communication front.


HOST TAG: John Elkington is the founder of the consulting firm
SustainAbility. He spoke with the Environment Report’s Lester Graham.

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Does Fair Trade Coffee Work?

Coffee beans can be pretty confusing these days.
At times it can seem like a political, even a
moral decision. You might want to buy those pricey specialty beans,
but now the supermarket also carries beans labeled Fair Trade
Certified. That might seem like the nicer thing to do for the farm
workers – and the environment. Julie Grant takes a look at those
claims:

Transcript

Coffee beans can be pretty confusing these days. At times it can seem like a political, even a
moral decision. You might want to buy those pricey specialty beans,
but now the supermarket also carries beans labeled Fair Trade
Certified. That might seem like the nicer thing to do for the farm
workers – and the environment. Julie Grant takes a look at those
claims:


Ahhh… it smells great in here. The owner of this coffee shop travels
the world in search of the best coffees. Linda Smithers has gone to
places such as South and Central America, Africa, and southern Asia to
visit farms and to taste coffee. She imports her favorites and roasts
them at her store.


And she has high expectations. Smithers wants to make sure that if
you’re paying a few dollars for a specialty coffee, it’s a satisfying
personal experience:


“And coffee should be able to do that for you. It should bring you
closer to you, and closer to the farmer. You should feel like you know
the farmer. And you feel passion and an intimacy with that farmer.”


I should probably have mentioned, Smithers really loves coffee.
She says the best coffees are grown on farms that are good to the
coffee trees, the local water, and the workers:


“Happy workers, safe workers, produce better coffee. They just do. I
see it every time I go to a farm. I see it when a worker enjoys what
they’re doing and feel they’re getting a fair price. They’re just like us. You
would not enjoy working and at the end of the day being given 20 cents.
You wouldn’t be happy with that. You wouldn’t work in a pleasant
way. And you wouldn’t pay attention to picking the ripe beans rather than the unripened beans.”


The Fair Trade label claims it’s found one way to help keep coffee
farmers happy and safe. The Fair Trade certification is supposed to be
a guarantee that farm co-operatives will get at least $1.21 for a pound
of beans. When coffee prices are low, that can be twice what other
farmers are paid. Fair Trade also promises farm workers have safe
conditions and are paid a living wage.


Michigan State University Professor Dan Jaffee wanted to know if the
Fair Trade system was doing what it set out to do:


“The Fair Trade movement claimed to be able to help bring them out of
poverty, improve their farming practices, make them more sustainable
and just generally improve conditions a lot, and I was interested in
finding out whether that was the case.”


Jaffee spent a few years in Oaxaca, Mexico studying two farming
communities. Some coffee farmers were part of Fair Trade
cooperatives, some decided against it. He’s just published a book called
Brewing Justice to report his findings. Jaffee says families
that joined Fair Trade were more food secure when the market price of
coffee fell:


“That is, they have food shortages much less of the time. They have
significantly greater access to animal protein, foods like milk and
meat and cheese in their diet. And they’re essentially able to feed
their children much more of the time than their neighbors, who were
really, at the time the coffee prices were at their low point at the
time I was doing my research in 2001, 2002, 2003, who were definitely
showing signs of malnutrition and there was a significant problem with malnutrition
in these communities.”


Fair Trade is still only a small fraction of the coffee market, but
its share of customers is growing, and the big players are taking
notice. Nestle is marketing Fair Trade products in the UK, and you can
find the Fair Trade seal at your neighborhood Starbucks. Only 3.7%
of Starbucks coffee is Fair Trade certified, but Jaffee says
that small percentage still makes Starbucks the single largest buyer of
Fair Trade coffee in the US.


Smaller coffee shop owners, such as Linda Smithers, also
buys some Fair Trade coffee. But Smithers doesn’t think guaranteeing a
specific price is the best way to encourage farms to grow the best
coffee:


“You’re given a price regardless of the quality. I have a problem
with that. I do not think that’s a sustainable agricultural model.
Remember, I’m a coffee person. I’m not a cause person, I’m
a coffee person. And to me, sustainable is: the product must be
outstanding and have good sociological and ecological practices, then
get a fair price.”


Smithers believes farms that treat workers and the environment well
naturally have the best tasting coffee and will always get a fair
price in the specialty coffee market.


Some conservative economists agree with her. They say the Fair Trade movement
will only continue to grow if looks beyond the socially-conscious crowd and continues
to improve the taste and consistency. That’s what people eyeing those gourmet coffee beans
want.


Smithers says Fair Trade has already been a success in that it’s put
issues of working conditions and the environment on the table…
and she could sit and drink a cup and talk about that for hours.


For the Environment Report, I’m Julie Grant.

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Biologists Criticize Shade Grown Coffee

New light is being shed on one of your shopping choices. Some conservation biologists have been critical of coffee that its distributors tout as better for the environment because it’s shade grown. The Great Lakes Radio Consortium’s Lester Graham reports:

Transcript

New light is being shed on one of your shopping choices. Some conservation biologists have been critical of coffee that its distributors tout as better for the environment because it’s shade grown. The Great Lakes Radio Consortium’s Lester Graham reports…


The idea is that shade grown coffee is better for the environment than coffee grown in full sunlight. That’s because rather than clearing the land for the coffee bushes, it leaves tropical rain forest trees standing. But some biologists say that’s not the same as leaving the rainforest intact. So, they say it actually accelerates the destruction of tropical forests.


Stacy Philpott is a co-author of an article in the December issue of Conservation Biology. She says with rigorous certification programs and fair trade policies, shade grown does mean conservation-friendly coffee bean farming.


“If there is a high diversity of shade trees, that helps maintain a lot of particular species of animals that live there.”


Philpott notes that shade-grown coffee certainly beats the alternative of clearing the land and planting coffee bush varieties that produce higher yields in the full sun.


For the Great Lakes Radio Consortium, this is Lester Graham.

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