Many of you know that Nestle created some serious dissention when it entered the fair trade market. But most of you don’t know why it was such a big deal.
Thus, an explanation.
The problem: The fair trade certification seal (left), a seal which most people equate with the fair trade movement, is awarded for the PRODUCT, not the company. Unfortunately, it seems that lots of people think that the seal’s offered to the COMPANY, not just the product.
(Update, 1/26/06: I updated the image to the left to clarify that Nestle was offered the fair trade seal by the UK Fairtrade Federation, which does the fair trade certification for UK products — Nestle’s Partner’s Blend is only avaliable in the UK. TransFair USA, which certifies the US products, was uninvolved with the whole Nestle debacle. More details on the different fair trade logos here.)
This creates a problem, especially in the case of Nestle. Now, Nestle, the most boycotted company in the world, played — and still plays — a LARGE part in CREATING the coffee crisis. Yet, a few months ago, the company also launched a blend called “Partner’s Blend” — An instant coffee that’s fair trade certified.
Meaning — The farmers who produce the coffee for this one product are compensated fairly. Yey!
However, Partner’s Blend makes up less than .1% of Nestle’s coffee imports. This means that more than 99.9% of Nestle’s coffee’s bought through “conventional” channels, allowing Nestle to make good profits at the expense of the farmers who’re more or less forced to sell their coffee below cost.
Which means that people who see the fair trade seal on Nestle’s Partner’s Blend may assume that Nestle’s changed their ways, when really, Nestle’s done damn little, especially for an international company that has the money and power to make big changes.
Meaning, Nestle may just be using the fair trade seal on their Partner’s Blend to greenwash their image.
Thus, lots of seriously dedicated fair trade coffee companies are pissed, PISSED, that they’re now sharing the same seal as big bad Nestle.
Take Equal Exchange, for example. This is a 100% fair trade co-op, fully dedicated to the fair trade cause. Rodney, “The Answer Man” at Equal Exchange (yes, that’s actually his official title), wrote a long, passionate letter about this: “we see this as the latest in a long line of actions by the world’s largest food business to make small gestures that look good in solation, but ultimately forestall real change for impoverished small farmers, and instead offer marketing, PR, and token efforts in its place.”
Patti Rundall of Baby Milk Action agreed: “To give a Fair Trade mark to a company whose baby food trade systematically violates child rights on such a massive scale makes an absolute mockery of what the public believes the Fair Trade mark stands for.”
Amy Barry of Oxfam disagreed somewhat, saying Nestlé’s move was “a very small step” in the right direction: “We would welcome it, but with very big caveats.”
There’s no question why Nestle would want in. In the UK, fair trade has big cache. There, fair trade brands account for about 4% sales of instant coffee and 18% of roast and ground coffee. There’s also no question: Nestle’s huge. It’s considered one of the “big four.” Some say that Nestle’s entry into the fair trade market will encourage the other biggies to do so as well.
We’ll be talking about such issues at the “New challenges in the fair trade movement” workshop at the United Students for Fair Trade convergence next month. But I’m curious to hear what your thoughts are, reader.
What should we as activists focus on? Should we work to educate others that the fair trade logo goes for the product, NOT the company? Or should we demand higher overall commitments to fair trade from the companies that’re seeking the fair trade seal?
BTW — I have Rodney’s permission to circulate the letter — Just lemme know if you’re interested, and I’ll email you a copy.
Update: 2/10/06: A followup post — Greenwashing while badmouthing fair trade.