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US/UK: FAIR-TRADE MOVEMENT ACTIVE ON BOTH SIDES OF THE ATLANTIC
October, organicTS.com editorial
The fair trade movement has been attracting attention again given
the plight of South American coffee producers and the success of
a fair trade chocolate bar in the UK. The volume of fair-trade coffee
imported by the United States has more than doubled since 1999,
said Paul Rice, director of the TransFair USA organization that
coordinates monitoring and labelling. But sales are still low and
currently few coffee growers benefit because less than 1 percent,
or
2.19 million of the 219 million cups of coffee Americans drink
daily, is certified as fair trade. Nicaraguan coffee growers participate
in fair trade programmes benefit from higher, free-trade prices,
around $1.26 a pound for fair-trade beans and $1.41 for beans also
certified as organic. Farmers would expect to receive about $1 a
pound depending on deductions for transport, processing and community
projects. This compares with prices of less than US$ 50 cents a
pound for ³normal² coffee. The fair trade movement is now targeting
the giant corporations that drive world coffee prices. However,
Procter & Gamble directors at a shareholder meeting Oct. 9 rejected
a pitch to offer fair-trade coffee. P&G prefers to help impoverished
producers by giving aid, spokeswoman Margaret Swallow said and executives
are looking for groups that work with farmers to help them switch
from coffee into growing more profitable crops. Soon Starbucks will
offer fair-trade coffee worldwide, chief executive Orin Smith said
and he wants fair-trade leaders to work with industry leaders to
find cooperatives that can produce the best coffee in large volumes.
Specialty-coffee lobbyists fear this is happening too slowly and
that a broad reduction in quality will result as low cost Vietnamese
robusta drives out the arabicas. "We can't do what we need
to do with fair trade," said Ted Lingle, director of the Specialty
Coffee Association of America. "We can't get consumers to connect
with the issue fast enough to make a real difference for the farmer."
Lingle wants coffee-market leaders in New York and London to remove
"triage" waste products that inflate global coffee volume,
in an emergency effort to resuscitate prices. In the UK Dubble,
the fair-trade bar aimed at children, celebrated its first birthday
last week and has exceeded all sales expectations with more than
3million bars sold so far. Day Chocolate Company, which markets
Dubble in collaboration with Comic Relief, created the brand a year
ago. The cocoa beans come from a farmers' co-operative in Ghana,
west Africa. Kuapa Kokoo which has grown from 22 participating village
societies to about 700 today. Kuapa Kokoo owns one-third of Day
and plays an active role in determining how the firm is run. In
the UK the fair trade sector's annual sales increase has averaged
53 per cent and this year sales are expected to top GBP 30million.
Cafedirect, the first fairly traded product on sale in the UK 10
years ago is now the fastest-growing coffee brand in the UK and
the seventh biggest. AgroFair UK is aiming to provide a fair-trade
fruitbowl to UK shoppers. Part of a Dutch-based firm which is co-owned
by growers from Ghana, Costa Rica, the Dominican Republic, Ecuador
and Columbia, its Oke bananas make up 10 per cent of the Co-op's
banana sales. From next spring, mangoes, then pineapples, citrus
and other tropical fruits will be added.
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