Fair Trade Coffee
The What,Why & How of Fairtrade Coffee
By Coexist
www.CoexistCampaign.org
www.Coexist.org
Shameless Plug #1
Yes, we are the “Bumper Sticker People”
The Coexist Campaign sources products from Post-Conflict Areas
O...
Mbale, Uganda
Shameless Plug #1
Two Ways you can buy Coexist Coffee:
Online:
www.CoexistCampaign.org
+ $40 Orders get Free Shipping! Ten...
Let’s Get Started…
What is Fairtrade?
A Fair Price Paid to Producers
A Focus on Direct Trade
Cooperative Structure Support
No Child Labor
What is Fairtrade?
Fairtrade Premium:
•  At least 5cts of the Fairtrade premium must be invested in the improvement of
pro...
What is the Fairtrade Premium?
What is the Fairtrade Premium?
Washed Arabica
Floor Price: $1.40
Premium: $0.20
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
$2.20
$2.40
$2.60
Fair Trade vs.Trading Prices
Trading Price Fairtrade Price
What did we Pay?
150 bags Non-Organic washed Arabica at $1.80/lb or
NYC + 0.45 which ever is higher. Price includes .20
ce...
WHY
Fairtrade?
The Fairtrade Goal
Stable Prices
The Fairtrade Premium (reinvestment)
Partnership
Empowerment of Farmers & Workers
Is it Working?*
Yes
•  Pro-Competitive effects
(raises prices in a region)
•  Reinvestment does improve
quality and yields...
Common Criticisms
Floor Price can attract poor quality products
Certifications impose overheads that can be crippling
The ...
The Catch 22
In Coffee, well-functioning coops are more important
than a Fairtrade certification…
Good Coops are more impo...
How does it work?
What do these mean?
Fairtrade International Mark
Fairtrade USA Mark – a separate org
FLO-CERT is the certifying body of Fa...
The Coffee Value Chain
Farmer
Private Intermediary
Processing Plant
Local Exporter Coffee Buyer
Retailer
Roasting Company
...
The Biggest Impact
Farmer
Private Intermediary
Processing Plant
Local Exporter Coffee Buyer
Retailer
Roasting Company
Cons...
The Gumutindo Example
Gumutindo is a cooperative of
cooperatives in Mbale, Uganda
Gumutindo has 17 affiliate
Cooperatives
...
Peace Kawomera Example
On the Market:
How Much Does the Farmer Make?
3.0K UG / lbs. ($1.17)
To Gumutindo: 3.8K UG / lbs. (...
Shameless Plug #2
Shameless Plug #2
Coexist Coffee is:
•  Fairtrade & We Buy DIRECT!
•  All Grown Organically!
•  Profits Go Back to Fund Ed...
Shameless Plug #2
1. Go to www.CoexistCampaign.org
2. Buy Our Coffee
3. Make the World a Better Place
Questions?
www.coexist.org
www.coexistcampaign.org
The What, Why, How of Fairtrade Coffee
The What, Why, How of Fairtrade Coffee
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The What, Why, How of Fairtrade Coffee

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The What, Why & How of Fairtrade Coffee looks at how fairtrade works, where it can fail (or be abused) and why it is necessary until a direct trade certification comes along.

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The What, Why, How of Fairtrade Coffee

  1. 1. Fair Trade Coffee The What,Why & How of Fairtrade Coffee By Coexist www.CoexistCampaign.org www.Coexist.org
  2. 2. Shameless Plug #1 Yes, we are the “Bumper Sticker People” The Coexist Campaign sources products from Post-Conflict Areas Our Coexist Coffee is a delicious, Fairtrade product from Uganda
  3. 3. Mbale, Uganda
  4. 4. Shameless Plug #1 Two Ways you can buy Coexist Coffee: Online: www.CoexistCampaign.org + $40 Orders get Free Shipping! Ten Thousand Villages Alexandria 915 King Street, Alexandria,VA 22314 Fenton Street Market (Sat, 10-4) Veteran’s Plaza, Silver Spring, MD Broad Branch Market 5608 Broad Branch Rd, Chevy Chase District Tea Lodge 1922 I St. NW,Washington DC Retail Locations
  5. 5. Let’s Get Started…
  6. 6. What is Fairtrade? A Fair Price Paid to Producers A Focus on Direct Trade Cooperative Structure Support No Child Labor
  7. 7. What is Fairtrade? Fairtrade Premium: •  At least 5cts of the Fairtrade premium must be invested in the improvement of productivity and / or quality of Fairtrade coffee. •  Investment can be made at the level of individual members and/or the producer organization. •  The General Assembly decides on the activities to be carried out. •  The producer organization needs to keep records on the use of the monies and to explain in which way it contributes to the improvement of productivity and/or quality. Coffee from Fairtrade Producers
  8. 8. What is the Fairtrade Premium?
  9. 9. What is the Fairtrade Premium? Washed Arabica Floor Price: $1.40 Premium: $0.20
  10. 10. $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 $2.20 $2.40 $2.60 Fair Trade vs.Trading Prices Trading Price Fairtrade Price
  11. 11. What did we Pay? 150 bags Non-Organic washed Arabica at $1.80/lb or NYC + 0.45 which ever is higher. Price includes .20 cents social premium and .25 cents quality premium 150 bags Organic washed Arabica at $2.20/lb or NYC + 0.75 which ever is higher. Price includes .20 cents social premium, .30 cents organic premium, .25 cents quality premium
  12. 12. WHY Fairtrade?
  13. 13. The Fairtrade Goal Stable Prices The Fairtrade Premium (reinvestment) Partnership Empowerment of Farmers & Workers
  14. 14. Is it Working?* Yes •  Pro-Competitive effects (raises prices in a region) •  Reinvestment does improve quality and yields •  Increases Social Capital No •  Little evidence Fair Trade conditions or monitor have impact •  Still not competitive with private producers (plantations) •  Fairtrade cannot overcome other problems like infrastructure and access to finance *Milford 2004
  15. 15. Common Criticisms Floor Price can attract poor quality products Certifications impose overheads that can be crippling The Free-Rider Problem Coops need to form Organically, Cannot be Forced
  16. 16. The Catch 22 In Coffee, well-functioning coops are more important than a Fairtrade certification… Good Coops are more important than Fairtrade Certs But, it’s difficult for consumers to make informed decisions without Fairtrade certifications on products!
  17. 17. How does it work?
  18. 18. What do these mean? Fairtrade International Mark Fairtrade USA Mark – a separate org FLO-CERT is the certifying body of Fair Trade International Consumer Facing Producer Facing
  19. 19. The Coffee Value Chain Farmer Private Intermediary Processing Plant Local Exporter Coffee Buyer Retailer Roasting Company ConsumerOrigin Country Consumer Country
  20. 20. The Biggest Impact Farmer Private Intermediary Processing Plant Local Exporter Coffee Buyer Retailer Roasting Company ConsumerOrigin Country Consumer Country Buying Direct!
  21. 21. The Gumutindo Example Gumutindo is a cooperative of cooperatives in Mbale, Uganda Gumutindo has 17 affiliate Cooperatives Pros: •  Helped new cooperatives by holding the certs (Organic & Fairtrade) & training managers Cons: •  Take a significant premium & create cash flow problems •  Try to prevent their affiliate cooperatives from going independent •  Fairtrade….but not Direct Trade
  22. 22. Peace Kawomera Example On the Market: How Much Does the Farmer Make? 3.0K UG / lbs. ($1.17) To Gumutindo: 3.8K UG / lbs. ($1.49) Direct to Coexist: 4.5K UG / lbs. ($1.76) (2013 Organic Prices)
  23. 23. Shameless Plug #2
  24. 24. Shameless Plug #2 Coexist Coffee is: •  Fairtrade & We Buy DIRECT! •  All Grown Organically! •  Profits Go Back to Fund Education!
  25. 25. Shameless Plug #2 1. Go to www.CoexistCampaign.org 2. Buy Our Coffee 3. Make the World a Better Place
  26. 26. Questions? www.coexist.org www.coexistcampaign.org

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