News archive: October 2007

VARGINHA, Brazil — Rafael de Paiva was skeptical at first. If he wanted a “fair trade” certification for his coffee crop, the Brazilian farmer would have to adhere to a long list of rules on pesticides, farming techniques, recycling and other matters. He even had to show that his children were enrolled in school. “I thought, ‘This is difficult,’” recalled the humble farmer. But the 20 percent premium he recently received for his first fair trade harvest made the effort worthwhile, Mr. Paiva said, adding, it “helped us create a decent living.” More farmers are likely to receive such offers, as importers and retailers rush to meet a growing demand from consumers and activists to adhere to stricter environmental and social standards. Mr. Paiva’s beans will be in the store-brand coffee sold by Sam’s Club, the warehouse chain of Wal-Mart Stores. Dunkin’ Donuts, McDonald’s and Starbucks already sell some fair trade coffee. “We see a real momentum now with big companies and institutions switching to fair trade,” said Paul Rice, president and chief executive of TransFair USA, the only independent fair trade certifier in the United States. The International Fair Trade Association, an umbrella group of organizations in more than 70 countries, defines fair trade as reflecting “concern for the social, economic and environmental well-being of marginalized small producers” and does “not maximize profit at their expense.” According to Fairtrade Labelling Organizations International, a group of fair trade certifiers, consumers spent approximately $2.2 billion on certified products in 2006, a 42 percent increase over the previous year, benefiting over seven million people in developing countries. Like consumer awareness of organic products a decade ago, fair trade awareness is growing. In 2006, 27 percent of Americans said they were aware of the certification, up from 12 percent in 2004, according to a study by the New-York based National Coffee Association. Fair trade products that have experienced the biggest jump in demand include coffee, cocoa and cotton, according to the Fairtrade Labelling Organizations. Dozens of other products, including tea, pineapples, wine and flowers, are certified by organizations that visit farmers to verify