The US consumes about 20% of the world's coffee production. This makes it a huge market and the demand of that market is one of the things that keeps coffee prices fairly high. One might think that part of that price gets back to the people who actually grow the coffee, but traditionally it hasn't. Only a tiny bit of the price we pay for coffee makes it back to the producers, but it's not enough to support production costs, much less a family.
The tiny, almost trivial, amount that makes it back to the workers forces them into a cycle of poverty and debt. The Fair Trade movement was developed to try to change that. Among other things, to be Fair Trade certified means that the growers will get at least $1.26 per pound for their coffee, much better than the typical 40-60 cents.
Using determination and persistance the Fair Trade movement has convinced over 100 companies, including Starbucks and Peets, to give you the opportunity to buy fair trade coffee. More and more companies are also joining this rapidly growing movement.
In addition to giving the grower a fair price, the movement is also pushing for organic farming methods, the idea being that organic farming is easier on the environment, fewer pesticides and chemicals are used, and it is also cheaper for the farmer. This makes it a win-win situation with the farmer incurring lower costs, getting more money, and not contaminating the land.
So what, exactly, is Fair Trade Certified Coffee? Basically it's the coffee sold by a company, such as Starbucks, that has entered into an agreement with a licensing company to purchase Fair Trade Certified coffee. Transfair USA is the only Fair Trade certification company in the US, but there are 17 of these companies worldwide.
Certification guarantees that the Fair Trade requirements are met. These requirements include that a minimum price is paid to the growers for the coffee, the buyer assists the grower with access to credit (to pay for harvesting,) and an incentive for growers and marketers to enter into longer term contracts. Long term contracts provide stability for the farmer, since he doesn't have to worry about where he will sell his coffee crop.
Before Fair Trade the minimum price for the coffee might be as low as 20 cents a pound. The ability to make enough money to live on, and raise a family on, means a great deal to the growers. It also gives them a greater incentive to be productive, since they know the extra work is meaningful.
In addition to the certifications for the buyers there is a similar system for the growers. The Fairtrade Labeling Organization (FLO) maintains a producers registry. In order to be a part of this registry the producers (farmers) must meet several criteria. They have to be poor, they cannot make use of hired labor, and they have to be democratically organized into small farmer associations. This ensures that the benefits of the Fair Trade movement go to the people who need it the most.
The Fair Trade movement is powered by a small, but growing, and very energetic group of people. Using grassroots activism, not government regulation, they are seeing encouraging and growing results among the various coffee companies. As mentioned above, over 100 companies are participating to a greater or lesser degree. There are a number of companies that are already 100% Fair Trade and more that are transitioning over from the traditional trade methods.
To learn more about Fair Trade Coffee, which companies are involved, and to see if you want to get involved, just go to your favorite search engine and type in "fair trade coffee."
A Google search for "fair trade jewelry" will bring up numerous companies, many of which sell ethnic jewelry produced in small villages in the developing world. The concept draws the socially responsible shopper, yet the third party labeling organization, Fair Labeling Organization (FLO) - of which Transfair USA is a member - does not currently list jewelry. Apart from that, some large players in the mainstream jewelry industry are beginning to tout concepts such as "fair trade diamonds" and "fair trade gold." So how does one make sense of these jewelry claims, especially as they relate to the $150 Billion mainstream jewelry industry?
Investigating the Self-Proclaimed Fair Trade Jewelers
Global Exchange comes up number one on Google in the organic, unpaid listings for the "fair trade" jewelry search. The Transfair logo at the bottom of their website would lead a shopper to believe that their jewelry, like the coffee they sell, is third party certified.
In the context of their claim, I emailed them, asking about the source of their precious metal and the environmental safeguard for their manufacturers - proper ventilation and disposal or toxic chemicals used in the manufacturing of the jewelry they sell. Finally, sterling silver is supposed to be .925% silver. Imports out of small villages in developing countries are notorious for labeling as sterling silver jewelry which has less silver content than real sterling silver.
Global Exchange wrote back explaining that their jewelry is made in a village by small scale artisans and fair working conditions, which they monitor. They could not answer questions about the environmental practices of these small manufacturers and did not monitor sterling content.
This application of the term "fair trade" to jewelry by Global Exchange is backed by a fair trade concept that exists outside of FLO. Global Exchange also referred me to the Fair Trade Federation (FTF), of which they are a member. FTF's website FAQ pages lists jewelry as a product. I interviewed Carmen Iezzi, the executive director of FTF, which helped me understand that FTF has nothing to do with products: only businesses that sell them-a subtle distinction probably lost on the average person.
Global Exchange, at least, has some history behind their ethical stance; there are many companies and stores using the concepts of "fair" and "eco" around their products with more questionable accountability.
Though "fair trade" jewelry is helping some villagers in the developing world, it is a negligible niche market in the mainstream jewelry industry as a whole, which does over hundred and fifty billion dollars annually.
The Difficulty of Fair Trade in the Main Stream Jewelry Industry
Taking the concept of "fair trade" jewelry out of the village and into the mainstream global jewelry market (think gold, diamonds, bling bling) is like banging that old square peg in a round hole. At present, the industry is totally commodity based and price driven, somewhat like lumber or oil. Fair trade concepts are just not part of the paradigm.
Consider the general conditions required for a fair trade item which is fairly straight forward: coffee. The beans are organically grown often in farms that work collectively, fostering entrepreneurship which translates into broader community prosperity. Third party certification assures a level of integrity that the ethical consumer buying at Whole Foods feels good about.
To translate the same concept into a jewelry product, one would have to factor in labor and environmental practices in the sourcing of precious metal and gemstones. Mining and development of the raw material - metal refining and gemstone cutting - are additional steps. Manufacturing a finished product presents another process with its own labor and environmental issues. Plus, there is a wide range of jewelry products, from toy rings to the high end. Attempting to come to an agreed upon criteria of what is ethical with such an elaborate, disparate supply chain is daunting.
The Ethical Sourcing Movement in the Mainstream Jewelry Industry
Meanwhile, a small segment of passionate, dedicated people in the mainstream jewelry industry are attempting to define "ethical sourcing", with the ultimate aim of some kind of agreed upon criteria leading to true, third party certification. This is going to be a long process. An Ethical Jewelry Summit organized by Earthworks Action is scheduled in Washington DC in late October, 2007.
The jewelry industry derives most of its revenues from diamonds, precious and gemstones and precious metal. The ethical sourcing movement has attracted the interest of governments, large corporations and the World Bank, where the Washington meeting is to take place.
Most raw materials in the jewelry industry are sourced from small scale mining, and efforts are under way to bring ethical practices to this sector. FLO's early efforts focus on ARM (Association For Responsible Mining). Some companies, such as the Rapaport Group and Columbia Gem House, have taken strong initiatives on their own, extrapolating the fair trade concept to apply to gemstone sourcing. However, precious metals and gems in themselves do not make up an entire piece of jewelry.
Though a finished piece of jewelry could be analogous to a fair trade chocolate bar which may have parts that are independently certified, we cannot have ethically sourced jewelry without addressing manufacturing which has its own labor and environmental concerns. Unlike coffee, mainstream jewelry cannot be easily manufactured in a developing world village because it requires a huge initial investment in equipment and raw materials.
Apart from companies that source their manufactured products from ethical factories, the most notable experiment in this regard is taking place in South Africa in a project called, Vukani-Ubuntu. The project essentially trains people from local townships into the main steam jewelry trade, providing training, mentoring and equipment. It is heavily supported by government and NGOs. But according to Lores Mares, CEO of the South African Jewelry Counsel, one of the most difficult challenges is bringing the product to a market.
Jewelry is strictly a commodity that is heavily cost driven. This ethical sourcing concept does not bring added value because the market is undeveloped. My anecdotal research shows that the progressive, green shopper who buys from Patagonia does not feel at ease with a typical jewelry sales person. Winning the progressive eco demographic back will be easy. Yet those in the mainstream jewelry world who are involved are sincere and heavily driven by humanitarian concerns-with the possible exception of the larger corporations who may be joining to polish their blood diamond, dirty gold image.
Though millions of websites reference "fair trade jewelry," the designation is, at this point, too ambiguous for all but a few main stream jewelry manufacturers to use. The consumer interested in ethically sourced jewelry needs to look for detailed information as to sourcing, labor and environmental practices. At present, transparency is often more valuable to the consumer than any designation.
Marc Choyt has sinced written about articles on various topics from The Ocean Beach, Engagement Rings and Jewelry. Marc Choyt is President of Reflective Images, an award winning jewelry company, that sells wedding rings sourced by artisan designers onlin. Marc Choyt's top article generates over 8100 views. to your Favourites.