green LA girl

March 23, 2006

Certification challenges XII: The 5% question

Filed under: caffeine, fairtrade, starbucks challenge — Siel @ 7:49 pm

[The whole Certification Challenges series is here.]

When talking about big companies’ reluctance to ramp up their fair trade commitments, activists will often point to a 5% commitment. At the moment, TransFair USA, the nonprofit that licenses fair trade products for the US, encourages companies to ramp up their fair trade purchases to 5% of its total coffee purchases within 2 years.

Where did the 5% argument come from? Dan, a panelist at USFT (left, scouring the wine list with Julia of Equal Exchange) who’s writing a book about fair trade, said the 5% deal was a “tacit” agreeement that ended when Starbucks entered the fair trade market. But I’ve yet to hear from anyone who was part of that agreement, tacit or not.

So I asked Matt of Just Coffee, a 100% fair trade (but not certified) coffee roaster, who said: “You should talk to EE (Equal Exchange) about the 5% dealio.” I asked Rodney of Equal Exchange, also a 100% fair trade (and 100% certified) company, who said he’ll try asking other people.

Really, I’ve found it difficult to find any concrete evidence that this 5% thing predated Starbucks’ entry into the fair trade market.

Jean of TransFair USA said her research leads her to believe that the 5% recommendation’s something that came into being as a result of Starbucks joining in the fair trade movement — which is looking likely. Matt of Just Coffee concurred, sort of: “My understanding was that the 5% discussion/expectation was the direct result of TFUSA romanicing big roasters who would be reluctant to commit in a meaningful way.”

Ah. Well, if 5% wasn’t meaningful, what’s 3.7%? Cuz that’s where Starbucks is now. After 6 years.

I get the impression that EVERYONE (Global Exchange, TFUSA, other FT activists) saw it as a victory of sorts when Starbucks entered the fair trade market. Cuz at that point, TFUSA was like 6 people in a room with about 15 licensees. It seems pretty clear now that both NGOs and mission-based companies saw that entry as a first step in the mermaid’s efforts to fundamentally change the way it does its coffee biz.

Clearly, that didn’t happen.

So — Was Starbucks required to make a real commitment to fair trade?

It seems quite likely that Starbucks was never held up to a 5% agreement. This is pissing off everyone else in the movement. Smaller, mission-based companies see Starbucks getting all the credit — down to a laudatory article written by TFUSA for Starbucks’ newsletter — with just one fair trade product. Activists hear people equate fair trade with Starbucks, despite the fact that, as a company, Starbucks has little alignment with these activists’ values about what a company can and should do.

The USFT convergence, where these issues, um, converged, was so last month. Since, TFUSA’s put out a brand spankin’ new FAQ to answer some of these critiques.

And, I hear there’s some stuff in the works for the SCAA (Specialty Coffee Association of America) conference in Charlotte early April.

Damn — Wish I could go, but I’ll be at UC Riverside, presenting a paper on Rikki Ducornet and the Surreality of War…

[The whole Certification Challenges series is here.]

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4 comments for Certification challenges XII: The 5% question »

  1. Yes, but is Rikki Ducornet a 100% surrealist? And if so, is he a certified surrealist? If he is not at least 5%, I say he blows.

    -Matt

    Comment by mateotemprano — March 23, 2006 @ 9:55 pm

  2. You’re hilar ;) SHE has surrealist sympathies — though some will say surrealism’s dead :P

    Comment by Siel — March 23, 2006 @ 10:09 pm

  3. I still think my suggestion in response to post XI seems a logical way forward, ie “Why doesn’t TFUSA set a cut-off date by which point Starbucks (or any other company) has to meet the 5% threshold. Let’s TFSA gave a 10 year window, and moved the 5% ‘target’ to be a 5% ‘minimum’ volume . Then if Starbucks hadn’t met the minimum volume by 2010 they could still be allowed to purchase Fairtrade coffee - but not allowed to use the Fairtrade logo in any way to continue greenwashing their operation.”

    In the absence of this kind of structure, one has to ask, what will be the medium to long term effects of the current situation? I can imagine either a) other companies in other sectors will see what Starbucks is getting away with and adopt a similar ‘greenwashing’ strategy and/or b) people (particularly those who are ethically aware) will totally lose confidence in Fairtrade, it will cease to become differentiating and believable, therefore companies (including Starbucks) may stop using it altogether. Does anyone know if FTUSA has declared a long-term strategy and explained what they are doing to make it happen?

    Comment by Mike — March 24, 2006 @ 1:41 am

  4. Hey Mike — Believe me, I agree with you. In fact, you might check out part XIII — It seems the 5% thing was recommended as a requirement back before Starbucks even entered the fair trade market — but TFUSA left it as a recommendation.

    Now, Starbucks is at 3.7% after SIX years — and is pushing its own watered-down CAFE practices in lieu of fair trade certification. And we’ve had some of the best mission-based companies ditch certification altogether, doing their work without TFUSA. We have a situation where both the most devoted fair trade activists AND the least fair trade conscious consumers are eschewing the fair trade certified logo altogether…

    Comment by Siel — March 26, 2006 @ 8:22 pm

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