1. Fair Trade Coffee

2. Purpose To assist coffee farmers in getting a fair price for the coffee they grow.  Guaranteed payment of $1.26/pound to growers  If the international price rises above this, growers will be paid extra To offer protection to farmers in times of hardship  Provide credit to farmers so they can rely less on loans from middlemen  Develop direct long-term relationships between fair- trade distributors & importers/roasters

3. Structure Packers in Developed countries pay the Fair Trade Organization for the right to use the label on their products Coffee must be purchased from registered Fair Trade exporters These exporters must adhere to certain standards required by the Fair Trade Organization

4. History Post WWII, the idea of “Fair Trade” emerged as a way to assist sellers in “Third World” markets get a fair price for their goods internationally. In 1988 Fair Trade was applied to coffee because of a crisis. (high supply=low $) By 2000, Fair Trade Coffee had become the fastest growing aspect of the coffee industry

5. Growth & Success With the success of Fair Trade Coffee, the market expanded to include bananas, tea, sugar, vanilla and rice by 2005. By 2007, sales of Fair Trade products in the USA reach $1 billion. Major businesses such as Dunkin' Dounts, McDonands and Starbucks offer some fair trade products.

6. Criticism Many companies are using the Fair Trade label to improve their image, but not really changing.  2008 Starbucks uses only 5% Fair Trade Coffee Fair Trade is costly for farmers as they need to adhere to certain principles  Organic -Hire workers and pay them fairly The popularity of the Fair Trade market hurts the poorest farmers who cannot adhere to these standards

7. Not all Fair Trade Products are Equal Every growing situation is unique so it is difficult to compare fair trade practices  Different farmers -Different land  Different countries (governments, tariffs)  Different communities & needs Some Co-ops prefer to use their $ for community development, while others for personal finances Therefore it is important for the consumer to not just assume all Fair Trade labeled products are better

8. Fair Trade Done Right! JustUs! Coffee  1 st Fair Trade organization in North America (1997)  Started in 1995, established a co-op with Mexico  Began as a small roaster in Nova Scotia  Won multiple awards in Canada for quality as well as social justice. (May 2012- Canada's Best Fair Trade Product)  http://www.justuscoffee.com/

9. Alternatives Thrive Coffee: Farmers roasting and packaging their own coffees http://www.thrivefarmers.com/ Rainforest Certified: Eco-friendly approach, focus on sustainability for farmers and crops http://www.thrivefarmers.com/ http://www.rainforest- alliance.org/work/agriculture/coffee http://www.rainforest- alliance.org/work/agriculture/coffee

10. Sources Pedregal, Virginie DiazOzcaglar-Toulouse, Nil. "Why Does Not Everybody Purchase Fair Trade Products? The Question Of The Fairness Of Fair Trade Products' Consumption For Consumers1." International Journal Of Consumer Studies 35.6 (2011): 655. Advanced Placement Source. Web. 17 Nov. 2012 http://www.fairtradeusa.org/ http://fairtrade.ca/en https://en.wikipedia.org/wiki/Fair_trade_coffee http://www.coffeeresearch.org/politics/fairtrade.htm http://www.globalexchange.org/fairtrade/coffee/cooperatives http://www.justuscoffee.com/ http://www.starbucks.com/responsibility/sourcing/coffee