The Fair Trade Federation Weighs in on Recent Starbucks Decision

Published October 30, 2008 @ 07:46AM PT

Executive Director of the Fair Trade Federation, Carmen Iezzi, offered her words and the Federation's response to Starbucks' recent decision to double their purchases of Fair Trade Certified coffee. The Fair Trade Federation is the evaluating body that rigorously screen organizations for their full commitment to Fair Trade. Here is what she had to say:

While we maintain the highest standards and expectations of ourselves and our members towards the Fullest Commitment to Fair Trade, the Federation values organizations that aspire to deepen their commitment to fair trade principles. We are pleased to see Starbucks' work with TransFair USA to increase the percentage of Fair Trade Certified Coffee that they buy. Federation membership distinguishes companies who strive to only source according to fair trade principles, because we know the impact that a deep commitment to Fair Trade can bring. With that in mind, we hope that Starbucks will continue to enhance their investment in Fair Trade.

We also encourage everyone involved - executives, store staff, outside organizations, and consumers - to continue their search for knowledge about the impact of Fair Trade and conventional sourcing.

Fair Trade Federation members strive to be 100% Fair Trade. Green LA Girl, Siel did a very comprehensive round-up of Starbucks' clash with Fair Trade activism. I encourage you to check it out. She points out that as of 2007, Starbucks' purchase of Fair Trade Certified coffee stayed at a stagnant 6%. In doubling it, their coffee purchases will be at 12%. What about the remaining 88%? Will Starbucks make a move to be fully committed to Fair Trade? Currently, this is a step in the right direction and I too hope they will continue to deepen their commitment to Fair Trade.

[image credit Jasmin Chua, at www.worstedwitch.com]

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Comments (1)

thanks for posting your blogs zarah

the question on 100% 'fair trade coffee' is a bit tricky.

there is nothing stopping SBUX doing what Dean proposed - paying a minimum fair trade price for all their coffee.

however, there are definitely issues of supply associated with SBUX buying only 100% Fairtrade Certified coffee (a key difference).

the 6% figure you quote of SBUX Fairtrade Certified coffee purchases equated to approx 10-15% of global Fairtrade Certified purchases by all buyers. so SBUX is a major buyer of eligible Fairtrade Certified coffee.

the doubling of the commitment will likely mean more coffee from existing Fairtrade Certified coffee producers, but also having to bring new coffee producers in to the Fairtrade Certification system.

i think the comment you heard about a 100% committment squeezing out small buyers is related to this issue of what is available within the Fairtrade Certification system at the moment, and that if SBUX decided tomorrow to only buy Fairtrade Certified coffee, there wouldn't be much left for anyone else.

more than just paying a fair price for coffee - which SBUX could do to tomorrow 100% - the Fairtrade Certification system offers a whole range of additional benefits to coffee producers and also requires transparency along the supply chain.

if SBUX committed to payin a fair price for all its coffee, the question is who they pay this too. SBUX has long claimed that the average prices they pay for their coffees are higher than the Fairtrade minimum price set out in the Fairtrade Certification standards. however, it is about where this price is paid in the supply chain, i.e. to the grower cooperatives or their exporters, vs agents or other supply chain middlemen.

so the 100% fair trade price would also require additional work and commitments on supply chains to ensure this price was being paid as close to the growers as possible.

with Fairtrade Certified coffee purchases, we have visibility on that.

there are clearly great opportunities with this SBUX commitment to doubling purchases of Fairtrade Certified coffee and it is up to all of us in the fair trade movement to work with businesses like SBUX, TFUSA, the global Fairtrade Certification system, to ensure that such opportunities maximise the opportunities for empowerment and development of coffee farmers around the world.

Posted by Cameron Neil on 11/08/2008 @ 01:42PM PT
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Zarah is the Operations Manager for the Global Exchange Fair Trade Online Store, a project of the international human rights organization, Global Exchange. Alongside her work with marginalized communities from all over the world to get their products into the international market, Zarah serves to educate and inform the public about a more just and sustainable trading system.