| T O P I C R E V I E W |
| Alee |
Posted - Oct 26 2010 : 05:48:25 AM
Trifecta! Three Interesting Developments in the Fair Trade Scene
Posted by matt at about 3pm on Friday October 22, 2010
After several years of the US fair trade movement quietly searching for its identity behind the scenes, three interesting initiatives have come to the foreground almost simultaneously that will surely influence the FT movement in the near future. I don't know what y'all are thinking, but I think we should check them out. Sound good?
Well okay then, in order to understand why these three initiatives have emerged in 2010 and how they have influenced each other, it seems like we should take a look at the recent history of the fair trade movement in the United States in order to place it into context.
Although many fair trade organizations existed in the US well before the late nineties, it was the birth and rise of TransFair USA that consolidated and transformed US fair trade into a force to be reckoned with. Through the leadership of Paul Rice and other very business savvy operatives, TFUSA quickly ushered the idea of FT into the mainstream by the creation and aggressive marketing of "the label". While this paid some immediate dividends in terms of familiarizing consumers with a brand, alternative traders and NGOs in the FT movement became increasingly uneasy with TFUSA's strategy of signing up big and non-commited companies to promote quick volume increases of FT certified products at minimum standards. This strategy marked a stark contrast from the idea of putting time and resources into developing a clear and alternative strategy to the existing "free market"-- the system that spawned the need for fairer trade in the first place. The growing perception among alternative traders and small producers was that TFUSA had chosen a purposeful course not to make trade fair, but rather to make it a little less unfair some of the time.
As this mainstreaming became more the focus of TFUSA's strategy-- and when stakeholder concerns bumped up against the closed doors and deaf ears of TransFair-- "mission-based" fair traders began to leave the TF system. Just Coffee Co-op left in 2004 with other roasters in Co-op Coffees. Other ATOs reluctantly stayed in the TF system, but many amped up their criticism and public questioning of TFUSA's motives and tactics. This dissatisfaction has further increased as the fair trade minimum standards have become stagnant with coffee minimum prices that have only increased a few cents per pound over a twenty year period. TF and their parent organization FLO have been slow to address this issue and there is an strong appearance that they are under pressure from the corporate licensees to keep these prices low.
After years of no FT certification alternative to the FLO/TFUSA model, the well-respected Swiss organic certifier IMO has entered into the mix with their Fair For Life (FFL) program. This certification differs drastically from the FLO/TFUSA model. The FLO certification features significant transparency demands to producers, but historically has only asked roasters and importers only for reports of labeled pounds sold and a check for the ensuing licensing fees. These licensing fees are, in my opinion, the root of the corporate co-optation of the TF system as they have become dependent on a few large companies to pay for a large percentage of their operating budget through these fees. The IMO certification is based on auditing of transactions and practices, but does not require a licensing fee, only a (relatively small) fee for the inspection and audit thus seemingly putting up a barrier to co-optation. The FFL program has gained a quick footing in the FT world with Dr. Bronners and other well-respected companies signing up. This has almost over-night wiped out TFUSA's monopoly on fair trade certification in the US.
In response to this TFUSA has reacted quickly and decisively in the only way it knows how: it is changing its brand strategy. In a "the gloves are coming off" move, TFUSA has re-named itself "Fair Trade USA". One of the criticisms leveled at TFUSA over the years has been the increasingly closed and rogue way that it operates within the FT movement. ATOs, NGOs, and producer groups have been dismayed at the lack of communication from TFUSA with the rest of the FT community, but many remained hopeful the TF would return to the roots of the movement. The recent press release by TF announcing the attempted legal capture of the term "Fair Trade USA" has by most accounts put an end to that hope. TF's insinuation in the announcement that groups like the Fair Trade Federation and the Fair Trade Resource Network were informed-- if not in agreement-- with the move, has been seen as particularly cynical within the movement. It seems obvious that this is a desperate move by a company that sees its hegemony coming to an end.
Right on the heels of both of these developments is the welcome entry of the Organic Consumer Association's "Fair World Project" (FWP). The OCA is one of the main forces behind the movement to keep organic standards meaningful and to scrutinize organic claims as well as organic certifiers while promoting organic practices as they were originally envisioned. The FWP will do much the same, looking at the validity of fair trade claims made by companies as well as examining the certifiers of FT practices. The FWP insists on "integrity in use of the term “fair trade” in certification, labeling and marketing" looking hard at and demanding transparency from all actors in FT-- not just producers. One of their aims is to point out companies that are "green washing" by selling a small portion of products bought at FT minimum standards, but who market themselves aggressively as fair traders hoping to cast a themselves positive light and distract from their overall practices.
Only time will tell how all of this will affect the larger movement to make trade truly fair. It is clear that, in its slide from relevance and credibility, TFUSA is now in reaction mode. Unfortunately, instead of engaging with the FT movement, they have once again chosen to deal with their issues by changing their marketing strategy. For IMO's part, it remains to be seen what impact they will have. However, by purposefully learning from the TFUSA fiasco and avoiding a dependence on licensing fees as well as having an actual auditing program, they seem to be setting themselves up to fill a much-needed niche in FT certification.
The most exciting result of all of this might be the emergence of the OCA's Fair World Project. Fair trade has needed a watchdog since the day TFUSA decided that they were marketing and branding specialists and not certifiers. If the FWP can truly examine roasters, importers, and certifiers and point out when they are misleading or compromised, the FT movement will have gained something truly important. Clearly it is one thing for a coffee roaster or importer to voice their opinion, but it is another to have a truly uninvested third party advocating for true fair trade and shining light into the dark corners of the FT market.
https://www.justcoffee.coop/node/11820
Alee
Farmgirl Sister #8
www.farmgirlalee.blogspot.com
www.allergyjourneys.blogspot.com
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