Got the email below from Rodney, The Answer Man at the fair trade company Equal Exchange today, who got together with Rink for a response to this post about Rink’s thoughts on fair trade :)
I’m still of the opinion that Rink was talking about more than consumer behavior (though I’m sure that was part of it) when he said that fair trade certification didn’t really matter — we were talking about the fair trade movement as a whole, and the directions it might go in the future.
More on that later — For now, here’s the email, the bulk of which I totally agree with — especially the need and utility of stronger fair trade certification standards. Thanks to Rodney for the convo :)
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To further the general Fair Trade conversation, and specifically to add to the discussion that started with this post, I just wanted to share some more thoughts from Rink (Rink Dickinson, co-founder and Exec. Dir. of Equal Exchange), and some of my own.
When Rink said in the small group session at last week’s Summit that “Fair Trade Certification doesn’t matter†he meant that the presence of the Fair Trade Certified™ seal on packaging seems to have little to no effect upon consumer behavior – even though that is its raison d’etre. While we know there are individuals like you who were introduced to the bigger Fair Trade story through the seal, Rink was saying that the seal doesn’t make much difference to the average shopper.
For example, when Café Campesino and Dean’s Beans took the seal off their packages it seemed to have no effect upon their sales. In Rink’s estimation most people, even those buying products bearing the seal, just don’t know what it means. I personally would love to see someone conduct a proper market study to find out.
However, regardless of its influence upon consumers, the presence and promotion of the Fair Trade seal in the marketplace does seem to have an effect upon the companies that do, or might, use the seal (i.e. “licenseesâ€) and this can be a good thing. Namely because some companies believe that the seal offers competitive advantages they use it. Some a lot, some very little. [Right, the crowd at Equal Exchange’s 20th anniversary party]
This, of course, means they have to buy at least that coffee or cocoa, etc. on Fair Trade terms. For conventional corporations this constitutes an improvement, and better incomes for farmers. Thus Rink’s take on Starbucks’ minimal participation in the Fair Trade Certification system – it’s better than nothing.
(I’ll speak for myself now)
Yet, with all that said, that dynamic represents a system that is heavy on marketing and light on the values that inspired the creation of Fair Trade over 20 years ago. Consequently, we have a tension that you might call a divide between “gradualists†and “acceleratorsâ€. (Not great names , I know, and maybe someone has already put other, better, labels on these camps, and on yet other groups in between).
I know that some folks, like “Havenocarâ€, won’t like the following, which is fine, but at EE we just can’t get excited about a low bar labeling system where, say, a multi-national corporation like Nestlé can convert less than 1/10th of 1% of their coffee supply chain and then present a “Fair Trade Certified™†package of coffee on equal footing with other products that come from an authentic Fair Trade supply chain and that represent real change – not just niche-marketing. [left: Equal Exchange’s roaster]
Yes, there also has to be an incentive and method for conventional corporations to gradually reform their practices, which was the purpose of the Fair Trade Certification and labeling system. We simply think that it could, and should, ask much more of the participants than it does today.
For myself I think this advocacy for a high-bar represents a kind of optimism about people, and their readiness for change. That is that we think that if you did ask more of companies (ie apply stricter standards) they would still participate.
In contrast the counter-argument seems to be predicated on the assumption that if you ask for too much firms will stay on the sidelines. Remember, too, that within corporations there are also vying camps. There will be “change agents†and the “money crowdâ€, and the later will probably insist that their firm do as little as possible to meet the requirements. Hence, the lower you set the bar, the less real change you get. But that’s just my theory.
Regardless, what is even more concerning to us is that with each passing year the bar actually seems to go lower, not higher. The recent Fair Trade labeling of rooibos from white owned South African plantations is a great example of a bad trend.
Obviously, all this raises as many issues as it addresses, so we’ll look forward to more postings, comments, and general conversation. Thanks again, Siel, for making this forum possible.
Rodney
Tags: fairtrade, coffee, equalexchange