Making the Case for Fair Trade
Overview What is Fair Trade? Fair Trade Principles Looking at Coffee Fair Trade vs. Conventional Trade Fair Trade Labels What is the CRS Fair Trade Program? How to get involved
Fair Trade Trivia 1. What is the second largest traded commodity behind oil? 2. The US typically spends how much each year on coffee? On chocolate? 3. Approximately how many beans does an average coffee plant produce a year? 4. Roughly how many beans are needed to produce a single pound of roasted coffee? 5. Chocolate is made from cocoa (Cacao). Cacao is A) a root, B) a bean, C) a Willy Wonka invention. 6. What are the world s top 5 cocoa-producing countries?
the Fair Trade Model A JUST ALTERNATIVE Fair Trade is a trading partnership based on dialogue, transparency and respect that seeks to restore greater equity in international trade.
Fair Trade Principles Fair pricing Direct purchasing from democratic organizations Social Premium Access to credit Environmental responsibility Long-term commitment
Fair pricing $1.35 per pound for conventional coffee $1.55 per pound for certified organic
Direct purchasing Democratically run cooperatives Farmer-owned and operated Community development
Education Potable Water Health Social Premium
Long-term commitment It s about relationships!
Access to Credit Farmers have access to credit, when it s most needed.
Environmental responsibility Financial incentives Technical assistance
Looking at Coffee Specialty coffee market: growing 20% per year 50,000 coffee shops by 2010 U.S. coffee market: $19 billion per year
U.S. $/lb. The coffee price crisis $2.00 $1.80 $1.60 $1.40 Composite Coffee Prices (May 1997- October 2001) $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00
The REAL coffee CRISIS WHERE DOES YOUR COFFEE DOLLAR GO? You pay: $1.50 The farmer gets: < 2
A Pound of coffee THE CONVENTIONAL WAY Your favorite retailer: $10 or more Coffee company Roaster Importer Exporter Miller Buyer Farmer: $0.30 or less
A Pound of coffee THE FAIR TRADE WAY CRS Fair Trade partner: $7 or less Coffee company Roaster Farmer: $1 or more
Big Fincas in Guatemala
Guatemala: Finca San Jeronimo
Nicaragua, Las Nubes Cooperative
Dominican Rep., CONACADO Cooperative
Alternative trade marketplace Handcrafts Chocolate Tea Cocoa Bananas Mangoes Wine Tee shirts etc.
FAIR TRADE CONVENTIONAL TRADE Technical assistance and training. Corporate investment in a community limited skills for business or corporate philanthropy Social premium Environmental concerns Profit is the overriding concern Committed relationship between producers and fair trade companies. Supply chain seeks out lowest cost though exploitative middlemen Advance credit Consumer education and advocacy leads to socially responsible business innovations Payment is received at time of shipment or typically within 30-90 days Marketing is directed at increasing profitability
Fair Trade Labels Fair Trade Standards
Catholic Relief Services (CRS) Relief and Development agency of the U.S. Catholic community Works in 100 countries around the world Response based on need Partners with local organizations Solidarity will transform the world
CRS Fair Trade Program PROMOTE Fair Trade as a just alternative to conventional trade CONNECT consumers with producers through Fair Trade partners ADVOCATE for pro-poor trade policies
CRS Fair Trade Program WORKING THROUGH PARTNERSHIP CRS partners with Fair Trade companies CRS delivers direct service, such as education, to beneficiaries CRS Fair Trade Fund
CRS Fair Trade Products & Regional Parters Crafts Coffee Chocolate 1995 2003 2005 SERV Dean s Beans Coffee, Tea, Etc. Equal Exchange Divine Chocolate Equal Exchange
CRS Fair Trade FUND Women of APECAFORM San Marcos, Guatemala Coffee roaster
What can YOU do?
Become a Fair Trader and Advocate for change! GET EDUCATED: Join Fair Trade Network Join the CRS Legislative Network GET INVOLVED: Buy Fair Trade Raise your voice, create alternatives
The economy should serve people, and not the other way around. Economic Justice for All