By Jody Treter

August, 2006

Third Eye Magazine

Here in the United States we are experts at gluttony. Before children can even talk, companies vie to win their brand loyalty with appealing logos, jingles and the promise that their product will bring more fun and happiness. The decision-makers in Washington D.C are well aware of the fact that people in the United States have become addicted to the many different products and services that can be purchased with relative ease from the far reaches of the world. According to the 30^th Annual Edition of the “State of the World” released by the World Watch Institute, spending in the United States and Canada comprises 31.5 percent of the world's private expenditures, which makes us the most consuming people in the world. With only 5.2 percent of the world's population, we are eating up more than our fair share of the world's good and services and, ultimately, non-renewable natural resources. At this pace, and considering the looming reality of China's exponential growth as a consuming nation, the struggle to secure a variety of cheap goods, as well as the petroleum to deliver them, is a daunting one. It is precisely this unrestrained accumulation of goods, and the fuel required to maintain it, that drives our aggressive and inhumane economic foreign policy. President Bush and his cronies are fast-tracking legislation and shaking hands under tables the world over in order to ensure that we never want for anything. Indeed, the battle for resources is unfolding around us, whether it be for oil in the Middle East, minerals in Guatemala or coffee in Chiapas, Mexico, lives are being lost and families broken apart because of ceaseless desire for more. Yet, findings from the World Values Survey indicate increasing wealth doesn't equate to increased happiness. In fact, the stress resulting from over-working and obesity is taking a toll on our entire society.

The good news is that we have unlimited access to the most powerful instrument of change – purchasing power. By consuming thoughtfully, we can affect change by supporting businesses who are committed to more than simply accumulating wealth. In Traverse City, the opportunities to use your purchasing power to catalyze change is becoming easier and easier all the time. By The Light of Day Tea and our company - Higher Grounds Trading Co. - are committed to 100% fair trade business models by sourcing solely organic and fair trade coffees and teas. Food For Thought – a local company that makes organic wine preserves and wild leek products – is currently piloting a domestic fair trade project that may help establish standards for the domestic fair trade industry. You can visit Nicole Manning and Vickie Kinney at the Unity Fair Trade Marketplace behind Union Street Station for a variety of fair trade crafts and foodstuffs, including pottery from Nicaragua and Peru, quilts from Guatemala and India and hand-carved drums from Ghana. Nicole, one of the proprietors of Unity, shares her thoughts on Fair Trade, “If we truly want to see change in the world, we can't just talk about it. We need to actually BE that change - do something to make the world a better place. We make choices every day that effect others and the world, and it's up to us to make the choice to help, not to hurt.”

It is due to this unrelenting commitment “not to hurt” in our struggle to earn a livelihood that so many business owners and consumers have joined the international fair trade movement. The guiding principle behind fair trade is this: If you have a relationship with someone with whom you are exchanging goods - and assuming you are both rational, caring human beings - it is highly unlikely that one party will be exploited by the other. In fact, the opposite is true. It is more likely that both of you will leave the interaction pleased with the outcome. For example, at Higher Grounds Trading Co. we trade coffee for a weekly share of flowers and fruit from Meadowlark Farms. Because we have a good relationship with John and Jenny of Meadowlark, it is easy to agree upon an acceptable swap of coffee for fruit and flowers. This most basic form of fair trade is based on neighborliness, an act most of us are eager to emulate.

The birth of the current fair trade system in the 1950s was based on this philosophy of caring for your neighbors. After spending many years in the field as missionaries, Mennonite groups began purchasing crafts direct from artisans, paying them a good wage and committing to help the artisans over the long-term by expanding their marketplace opportunities. The idea continued, facilitated primarily by Christian groups for a few decades. Eventually, the Fair Labeling Organization (FLO - www.fairtrade.net) was formed in 1997 to act as the official governing body of fair trade. In the United States, TransFair USA – a non-profit organization that reports directly to FLO - and the Fair Trade Federation certify that companies meet the fair trade criteria including:

• Paying a fair wage in the local context.

• Offering employees opportunities for advancement.

• Providing equal employment opportunities for all people, particularly the most disadvantaged

• Engaging in environmentally sustainable practices.

• Being open to public accountability.

• Building long-term trade relationships.

• Providing healthy and safe working conditions within the local context.

• Providing financial and technical assistance to producers whenever possible.

 

With the advent of the internet and it's increasing popularity in the 90s, information about exploitative trade practices spread quickly. Nike was brought to task for sub-contracting companies in Asia that over-worked their employees and didn't provide bathroom breaks. Oprah Winfrey, in her infamous battle with the Beef & Cattle Ranchers, shed light on why it's important for US consumers to ask questions about where our food is produced and how it is manufactured. Americans took notice that the liberal economic policies espoused by Reagan, Thatcher and now the Bush regime, are slanted to benefit the world's wealthy minority while the poor majority continue to struggle with poverty and it's implications, whether that be in the United States or abroad. At least in part due to this change of consciousness, the Fair Trade movement exploded in Europe and then in the United States.

The Fair Trade system, still in it's infancy, is a means to reduce and, eventually, eliminate poverty. Fair Traders have witnessed the “invisible hand” of the free market reap huge profits for companies at this end of the supply chain at the expense of the farmers and manufacturers, who have no consolation during years in which the prices they receive for their products is below the cost of production. While free marketers sit in their cozy offices in New York City singing the praises of “barrier-free” trade, they don't tell us is that the poorest of the world don't have any say in this system. If Jose Ramon in Chiapas has a cash crop to sell, like coffee, sugar or bananas, he is at the mercy of the coyotes (middlemen who come to the remote villages to collect coffee). Without a level playing field and advocacy on the part of the producers, their fate is out of their own hands. The extreme poverty resulting from the exploitation of workers and farmers has resulted in the dismantling of identity and culture.

Fair Trade gives decision-making power back to the producers/artisans so that they are equal partners in the trade. By forming co-ops in the coffee industry, each farmer is an equal owner of his/her coffee producing organization and, thus, has the opportunity to share ideas and thoughts about farming practices, accounting methods, exportation issues, contracts, etc. When coffee farmers work for plantations or manufacturing facilities, they are little more than indentured servants, sometimes receiving a decent wage, sometimes not. In countries without strict labor laws, there is no certainty that the farmers (usually working as day laborers) are treated well or listened to. Essentially, it's the difference between a top-down approach in which the buyer/plantation owner makes decisions based solely on their own needs or a grassroots, cooperative approach to trade in which the farmers are viewed as equal partners in the success of the business.

The fair trade industry is the best way to ensure wealth and decision-making is shared along the entire supply chain. There are many companies in the United States who are attempting to discredit the fair trade movement. Of course, many of the naysayers simply don't want to participate in a system in which they must pay high minimum prices (at least $1.41 for organic, fair trade coffee), even when world market prices are down. And often companies don't want to commit to long-term relationships with producers because they want the freedom to change suppliers if they can find a lower price somewhere else or if the market is leaning toward Colombian rather than Sumatran, for example. All of this is antithetical to fair trade. In the case of coffee, fair trade means committing to paying a liveable wage for green beans, despite the world market ups and downs because it's the humane thing to do. The producers can then focus on farming instead of being distracted by hunger or worry over how they will find money to eat. And by creating long-term relationships with farmers, the partnership evolves into one that is mutually beneficial for both parties; the farmers know they'll have a market for their product and give preference to this relationship by providing their highest quality beans. At our end, we have a secure source for the best quality green beans and, as a result, happy customers that keep returning. It's a win-win.

And while fair trade provides a solid set of minimum standards by which to operate, the standards are not an end unto themselves. At Higher Grounds Trading Co, we pay $.20/lb or more above the fair trade price for green beans and we've pushed the envelope of fair trade by developing relationships with farmers via regular visits and on-going communications. To increase awareness about trade and agriculture issues, we lead customers on annual delegations to visit farmers. Owners of 100% fair trade businesses, because of their commitment to humane practices, are the trend-setters in “greening” the workplace and fair employment practices here at home. From using only post-consumer recycled papers to providing employees with wellness plans to delivering coffee by bikes or biodiesel-fueled vehicles, fair traders are showing that we can “change business as usual”. Through choices you make with your purchasing power, you can choose to support those of us who seek authentic change or you can affirm those who have been dictating our nation's economic, and thus political, agenda for way too long.