Cost of coffee.indd - RISC

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aim how fair’s fair? ◆ To explore the fair trade production chain using coffee as a case study. outcome ◆ A greater understanding of the benefits of fair trade to producers and its role in changing the existing unfair system of world trade. what you need Photocopies of Actionpages: How fair’s fair?, A brief history and Pros & cons – A brief history can be distributed before the session to ensure participants are familiar with the principles of fair trade; flip chart paper; glue. what you do s Ask how many people regularly buy fair trade products. Why? Which products? How do you imagine most fair trade coffee is produced? s Divide into small groups. Hand out the Actionpage: How fair’s fair? Explain that different kinds of production process can meet fair trade criteria, ranging from small scale family farms to large commercial plantations. The Actionpage includes four scenarios for the production of coffee. Three qualify for the Fairtrade Mark, the fourth does not. The groups will discuss the questions to decide which scenario most closely matches their ideal of fair trade, and sustainable development. whole group discussion s Choose two or three groups to show their material and explain the main points of their analysis. Bring out more general points. ◆ Which of the scenarios meets your expectations of fair trade production? ◆ What further information would you like in order to judge the ‘ethical’ credentials of the production? ◆ Which of the scenarios offers the possibility of sustainable development? ◆ What was your reaction to the use of children in the small scale family producers? ◆ Would child labour be acceptable in co-operatives or plantations? ◆ Who takes the most/least financial risks in the different ‘coffee chains’ between farmers and consumer? ◆ Who benefits most/least? ◆ How important is it to bring fair trade into the mainstream? ◆ How far does fair trade challenge or change the unequalities of the existing world trading system? ◆ What changes in the world trading system would improve the lives of poor farmers dependent on the volatile price of commodities such as coffee? ◆ If Nestlé decided to introduce a fair trade brand do you think it should be given a license to use the Fairtrade Mark (given its continued flouting of the International Code of Marketing of Breastmilk Substitutes)? ◆ What are the pros and cons of an initiative such as Coffee Kids? 32 key ideas ◆ Fair trade aims to create equal partnership and respect between Southern producers and Northern importers, fair trade shops, labelling organisations and consumers. It makes the producer-consumer chain as short as possible so that consumers become aware of the culture, identity and conditions in which producers live. ◆ Fair trade producer groups vary greatly between products and regions. They include
federations of producers, co-operatives, family units, workshops for disabled people, state organisations, private companies, and range in size from 20 to 200,000. ◆ A lot of the marketing and campaign materials produced by fair trade organisations focus on the benefits of fair trade for family-sized producers. In fact, a large proportion of fairly traded agricultural products are grown on commercial plantations by waged labourers. So long as these enterprises respect basic International Labour Organisation (ILO) standards and local government-set minimum wages, they qualify for fair trade status. ◆ These wage rates are often only sufficient to meet the most basic needs. For many fair trade producers, including family units, life remains extremely hard. Although their income levels are higher and more stable, their life choices are still limited, with difficult decisions to be made between spending on health, education, housing etc. The edge may have been taken off poverty, but their hard work does not earn a lifestyle remotely comparable to that of consumers. ◆ Children often play an active economic role in farming communities and they make a vital contribution at key stages such as harvesting. On a family farm this need not be detrimental to children’s well being, if their health and education is not impaired. However, on commercial plantations there is much greater danger of exploitation as children are treated as a cheaper form of labour. ◆ Fair trade is dominated by North. Despite the involvement of producers’ representatives in decision making, labelling organisations dominate process of setting criteria, monitoring, marketing etc – they have more power because they are closer to the consumer and can choose which producers to work with. ◆ Farmers still take most of the risks – the price of crop failure due to weather or pests, is not shared by consumers or processors. Under current arrangments no additional premium is given to cover extra time and cost involved in more sustainable production, eg environmental protection or organic methods. ◆ In itself fair trade is not sufficient to create a more equitable world trading system because power is held by transnational corporations (TNCs) in the North, supported by their governments and international bodies such as the World Trade Organisation (WTO). ◆ TNCs are commited to increasing profits and maintaining shareholder value – sometimes, as in case of Enron, resorting to false accounting to inflate their share price. This is reinforced by the system of rewarding senior executives with stock options which means their personal wealth is tied to share price. ◆ Some TNCs now embrace the idea of ‘corporate citizenship’ and include social and ethical auditing, and environmental impact, in their mission statements. However, critics accuse many TNCs of ‘greenwash’ – hyping their involvement in social and environmental projects as a public relations exercise which masks their continued drive for the ‘bottom line’. ◆ A truly just trading system can only develop when there is a radical shift in the balance of power so Southern countries can develop their economies to suit the needs of their own people rather than the interests of Northern banks, TNCs and consumers. ◆ The current system of fair trade is a stage in the process of forcing such a shift. It is an example of trading where profit is not the only ‘bottom line’, and the desire of consumers for ‘value for money’ is balanced with the wish of producers to be free of poverty. It also provides a means of increasing consumer awareness and creating a climate of opinion in favour of change. follow-up ◆ Hand out Actionpage: Pros & cons which summarises the benefits and limitations of fair trade. ◆ Play the board game Coffee Culture. This explores some of the trading issues that effect coffee producers in Nicaragua and illustrates the benefits of fair trade. It has been silk screen printed onto a wipeable tablecloth and is designed as both an educational and promotional tool for schools and youth groups, as well as café and restaurants that support fair trade. It is entirely self-explanatory and comes with counters and dice, contained in an attractive cloth bag. Available from RISC: admin@risc.org.uk. 33
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Page 4 and 5: “ A company that adopts and imple
Page 6 and 7: the instructions What you need - ge
Page 8 and 9: glossary bluewash The ploy used by
Page 10 and 11: coffee file Coffee: adaptation of A
Page 12 and 13: 8 the story of coffee D the coffee
Page 14 and 15: wet method D requires the use of re
Page 16 and 17: 200 Robusta coffee market 1986-2005
Page 18 and 19: drinker roasted, ground, instant CO
Page 20 and 21: 16 key ideas ◆ ◆ ◆ ◆ ◆
Page 22 and 23: Profit margins are high - Nestlé h
Page 24 and 25: key ideas ◆ ◆ ◆ ◆ In respon
Page 26 and 27: • because of past price fluctuati
Page 28 and 29: aim a fair price? ◆ To analyse th
Page 30 and 31: ◆ Although in The coffee cycle Ne
Page 32 and 33: s Analyse the photos used and the o
Page 34 and 35: ◆ ◆ Real costs A supply and dem
Page 38 and 39: actionpage: how fair’s fair? s Re
Page 40 and 41: 1990 european fair trade associatio
Page 42 and 43: Actionpage: Pros & cons 38 PROS Gua
Page 44 and 45: aim fair marketing ◆ To analyse t
Page 46: Actionpage: Logo ® 42
Page 49 and 50: actionpage: press release Statement
Page 51 and 52: appendix 1: the coffee crisis The I
Page 53 and 54: demand sides in which the coffee cr
Page 55 and 56: demonstrating that traditional shad
Page 57 and 58: appendix 4: co-op’s fairtrade cof
Page 59 and 60: appendix 5: mugged introduction The
Page 61 and 62: women earn less, work longer, have
Page 63 and 64: appendix 6: rescue plan A Coffee Re
Page 65 and 66: Consumer governments 1 Provide poli
Page 67 and 68: joining forces we believe that we w
Page 69 and 70: of shortfalls that occur (see Nestl
Page 71 and 72: appendix 8: robbing coffee’s crad
Page 73 and 74: appendix 9: behind the mask the rea
Page 75 and 76: • change the law to enable people
Page 77 and 78: Fair Trade in Action - KS 3-4 Fairt
Page 79 and 80: ackground reading* Behind the mask:
Page 81 and 82: useful contacts Anti-Slavery Intern
Page 83 and 84: International Coffee Organisation w
Page 85 and 86: isc Reading International Solidarit

Cost of coffee.indd - RISC

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