“A company – co-operative or corporation it does not matter – cannot start a movement. It is called marketing.” – Fred
On October 1, 2010, Equal Exchange and six consumer co-ops launched Principle Six Co-operative Trade Movement. Fair Food Fight picked up the article introducing the new initiative and a skeptical gentleman named Fred accused us of “astro-turfing”. Despite his erroneous comment that the P6 website promotes the products of only one manufacturer, (there are literally tens of thousands of products being highlighted in the P6 initiative through the website and in the stores), Fred nevertheless poses an interesting question.
Can a company (co-operative or otherwise) legitimately have a social mission? Can a company simultaneously meet the needs of its own workers, supply chain partners (in our case, farmer co-ops, food co-ops, and other progressive retailers), interfaith partners, investors and consumers? Can a company be part of a network of like-minded organizations and individuals who want to change the way business is conducted and the terms of trade are defined? In short, can a company (co-operative or otherwise) spark a social movement?
I thought Nicholas Reid provided a great response to Fred’s cynical view of all businesses. “I actually appreciate your skepticism of companies… I think that’s healthy and, more often than not, correct (although I rarely see co-operatives engaged in green-washing or “astro-turfing”). In this case though, I would argue that Fair Trade – Equal Exchange’s primary mission – is the perfect example of a movement started by companies.… There are hundreds if not thousands of great companies that produce excellent products but are also committed to social, environmental, and economic change. It’s a shame to write them all off because they’re in business. Seems like that’s what P6 is all about.”
Fred stopped writing so we don’t know if he ended up agreeing with Nicholas or just moved on to other issues that rub him the wrong way. Still, I found myself thinking about Fred’s distrust, and like Nick, was moved to reflect again on the origins of Equal Exchange. For those of you unfamiliar with the story, let me give you the ever most concise version. Then I’d love to hear your thoughts on these questions.
Equal Exchange, Co-operatives, and Fair Trade
25 years ago three young guys had a vision.
Jonathan, Michael and Rink were working at a co-op distribution center and they saw how disconnected consumers were from their food and the farmers that grew it. At the same time, they began to understand the tremendous struggle that small and family farmers face as they try to provide a livelihood for their families; the very folks who literally sustain our bodies and souls, as well as our planet, are barely able to survive economically.
Clearly, something about our food system wasn’t working: not for farmers and not for consumers.
With these concerns in mind, they founded Equal Exchange. The mission was multi-faceted. They wanted to create a high quality food company that nourished the body and the soul, but they had other, equally important goals:
- Support small farmers by paying them a fair price and establishing trade relationships built on dignity and equality;
- Educate consumers about the food system; where it comes from, how it’s grown and distributed;
- Facilitate stronger relationships between consumers and producers.
Non-profit or for profit?
The question was: given this kind of hybrid mission, what type of organizational structure should they adopt?
Obviously, the educational and social goals of the organization fit nicely with a non-profit structure, and certainly there were individuals and foundations that would be interested in supporting them financially. Still, there was something perhaps too “easy” in choosing this route. There might always be foundations and individuals willing to support a non-profit dedicated to helping small farmers to survive and thrive, and educating consumers about the food system and their connections to those who farm.
But could they form an actual business, with this same social mission… and survive in the marketplace? Better yet, could they prove through the viability of their business, that a company could have a social mission, treat its workers and its “suppliers” and “customers” with dignity and respect, and still turn a profit? Could they serve as a model for how the rest of the business community should behave? In a way, as the founders ultimately decided, becoming a business would provide the true populist test.
Even more importantly, could they make Fair Trade a household name? Could they convince enough other businesses to participate in this system so as to create their own competition? Could they create a MOVEMENT that would actually change the way trade is conducted?
I think you see where I’m going here.
But there’s one more point to be made before we talk about the present. Like Fred, the founders were legitimately cynical about the nature of business, bottom lines, and profits. So, even though they felt that their model was stronger as a for-profit, they still had concerns. For this reason, they decided to found Equal Exchange as a worker-owned co-operative. The organization would be democratically run, with a 3-1 pay scale (20 years later after much controversy, we amended the pay scale to 4 -1), and workers electing the Board of Directors and having a vote in change of operations and locations.
Fast forward twenty years.
At our 20thanniversary in 2006, we celebrated our successes: 40 small farmer co-operative partners in 20 countries. 80-some worker-owners. High quality gourmet coffees, teas, and chocolate products, with healthy snacks, and bananas on the way. $23 million in sales. $2 million in pre-harvest loans provided to our farmer partners. Five cents on every pound of fair trade coffee and other premiums going back to the farmer organizations for social projects.
Rest on our laurels? Well, we could. But I’m going to say that because we’re actually “not just in this for ourselves”, we couldn’t celebrate without some accompanying soul-searching. We looked around and said, hey our farmer partners are much better off than they would have been without Fair Trade and Equal Exchange, but they’re still struggling. In fact, national and international laws and policies that favor large plantations and multi-national corporations are actually making life much harder for small-scale farmers despite all our best intentions. And on this side of the border, our food co-op partners, the pioneers of the organic and fair trade movements, and more recently, the buy-local movements, are getting their butts kicked by large national chains who certainly don’t worry about such things as member control, consumer education, and participatory workplaces.
Collectively, we took a long hard look in the mirror. We talked to our farmer partners. We made the rounds of our strongest food co-op allies and we came to a decision: it was time for a new initiative.
P6 launch at Seward Community Co-op, Minneapolis, MN
Principle Six Co-operative Trade Movement
Fair Trade may not be a household word, but it’s certainly no longer some radical hare-brained idea cooked up by three wild-eyed crazy young guys. 600 local roasters have followed in our footsteps and several large coffee, tea, and chocolate companies are purchasing a portion of their products according to Fair Trade principles. Pre-harvest financing is the accepted norm in trade circles. Our farmer partners have a seat at the table.
But, could we stir things up a little more? Could we have greater impact? Could we make more of a difference?
Principle Six is only about six weeks old. And the goals of the initiative are really not that different than the goals shared by all food co-ops… in fact, by every co-operative throughout the world: co-operation among co-ops, member education, community empowerment . We’re returning to our roots and our values. Mechanically, this means that we will highlight those products and companies we believe meet our highest values: small farmer/producer, co-operative, local.
Today P6 is a pilot initiative involving Brattleboro Food Co-op, The Merc Co-op, Seward Community Co-op, Davis Food Co-op, Willy Street Grocery Co-operative, and Bloomingfoods Co-op. Consumers can also participate through our new website launching November 15th.
We hope today’s pilot initiative becomes tomorrow’s national movement. Because Principle Six takes the initial goals of Fair Trade (to support small farmer organizations, promote sustainable agriculture, educate consumers, and most importantly, I would argue, to create change) and merges it with the Buy Local Movements concerned also about the environment, community control, and economic development. It places co-operatives front and center.
Can co-operative businesses spark a movement? Only if committed, idealistic consumers with an interest to change the system decide they can. Please join up.
Shelly P. & Hannah G., at the Seward Co-op P6 Launch
Small Farmers. Big Change. 
This is a great question and a great response by Phyllis. I would just like to link to the roots of the Cooperative movement from the ICA web site: http://www.ica.coop/coop/history.html
The Rochdale Pioneers was what one could consider a grassroots organization in 1844, and they sought to make food both affordable and safe by means of a consumer owned store – and in the process created a world-wide democratic cooperative movement. In my mind, they are the archetype of a company that created a social movement, and it is in their and thousands of other co-ops footprints that we press forward in trying to change who owns and controls our food system.
I applaud your hard work and your support of small farmers. Very impressive and — might I add — against great odds! Thank you.
Nonetheless, I think your critics have a valid point. “Sparking a movement”, whether that of “cooperatives” or “fair trade”, is simply not done by corporations. And this is true for both the cooperative and the “fair trade” movements!
The fair trade movement dates back decades, but its commercial form (certification plus marketing) can be traced to Dutch priest and the coffee farmers he served in Oaxaca, Mexico, in the early 1980s.
As for the “cooperative movement”, well you have heard of Rochdale. I think that happened long before Equal Exchange started marketing itself as the leader of these movements!
Your “P6” branding effort is more marketing. Why? Because you define it, you control it, and you own it. Equal Exchange is a for-profit food processing and marketing company. Movements come from the people before they are co-opted by industrial marketers. This is marketing. And you are good at it!
On Thursday, May 06, 2010, a U.S. federal trademark registration was filed for P6 PRINCIPLE SIX CO-OPERATIVE TRADE MOVEMENT.
This trademark is owned by Equal Exchange, West Bridgewater, MA 02379. Trademarkia.com is a free search engine of publicly available government records. Trademarkia.com is not a law firm and does not represent owners & correspondents listed on this page.
Equal Exchange actually attempted to trademark the phrase “cooperative trade movement”!
I would hardly call Equal Exchange an “industrial marketer” out to “co-opt” all that is green/fair/socially-just.
Similarly, categorizing EE as “a for-profit food processing and marketing company” seems a bit biased and not entirely truthful.
I think it’s entirely possible for a 100% fair trade and mission-based worker-owned co-op to participate in movement building. And for a collaboration of EE and six food co-ops to launch a movement in support of a more sustainable food system that values co-operatives, fair trade, and small-scale and local production. Again, thousands of products are included in this program.
In light of true co-opting of these values by big business, maybe a program like P6, with no motive other than to support our mutual goals and ideals, isn’t such a bad thing.
Full Disclosure: I’m a worker-owner at EE, although not involved in the P6 Program.
Hello Kelsie,
Yes, your company is a for-profit processor and a marketer of food! That is a true statement. An inconvenient truth, perhaps.
You wrote: “In light of true co-opting of these values by big business, maybe a program like P6, with no motive other than to support our mutual goals and ideals, isn’t such a bad thing.”
Well, you do have very significant financial motives, just ask your bankers and your investors!! And exactly who determines “our mutual goals and ideals”?
Why not set-up a non-profit and invite cooperative leaders and actual small-scale producers to participate?
Dear Thaleon,
Thanks for your comments. I’m actually sorry that you feel this way about the power of co-operatives to spark a movement.
Nevertheless, I’d like to address two of your points:
– Equal Exchange is not trademarking Cooperative Trade Movement. As you know, we have launched a new initiative with six food co-operatives across the country. It is the name of this initiative, Principle Six Co-operative Trade Movement, which we are trademarking.
– I have never made the claim that Equal Exchange started the Fair Trade movement. Throughout our website and blog, we have done more than justice to the history of Fair Trade; to Franz van der Hoff, the thousands of small farmer co-operatives throughout the world, Ten Thousand Villages, the European ATOs, etc., without whom there would be no movement. I did say, however, that Equal Exchange was the first organization in the United States to become involved in Fair Trade with respect to food. That is fact. It is also fact that when founded, in 1986, Equal Exchange’s mission was to change the way trade is conducted; to pay farmers a fair price; to educate consumers about farmers, food, and trade issues; and to bring consumers and farmers closer together. You can refer to us however you like, but creating our own competition was part of the early mission and I believe that many small roasters will agree that Equal Exchange mentored them to the point that there are now something like 600 local roasters buying under Fair Trade terms. I do not accredit Equal Exchange for the entire movement. But the facts do speak for themselves.
Finally, you are entirely correct that Equal Exchange and our six food co-operative partners have launched Principle Six partly as a marketing endeavor (as was building Fair Trade before that): to highlight those products which meet our highest values: those that come from small farmers and producers, local farmers/producers, and co-operatives/non-profit organizations. As such, we will be promoting thousands of products from hundreds of producers that we believe meet the highest mission standards. As someone who works for a co-operative [of small coffee farmer co-operatives], where do you find fault in this? In fact, as a co-operative, Pachamama is one of those companies being highlighted in Principle Six. Would you rather not participate in this initiative?
Dear Phyllis,
Naturally, I feel cooperatives can be wonder business models. But I not believe that business sparks a movement. People do. A for-profit business can spread the word, but it generally does this in response to its own financial incentives.
In the case of the fair trade movement, I agree many companies did spread the word and I think that they primarily did so because they had the financial incentive to do it. And, let’s remember, Fair Trade Coffee Certification is something that was created by, and remains controlled by, roasters and importers of in the North. Farmers had very little input. And this remains true today.
The facts do speak for themselves. And 90% of premium you pay for Fair Trade coffee stays in the consuming country. Not all that impressive when you do the math.
How many farmers are on the board of directors of FLO? How many farmers are on the board of directors of your company? Who sets the prices? Who writes the PR? Not farmers, although the marketing of Fair Trade often suggests otherwise.
I don’t find any fault in promoting and marketing these products and relationships. But I do think it is misleading to brand it as a “movement”. And, in my personal opinion, it is not “fair”. Many farmers and consumers agree.
In response to P6, how can we “participate”? Nobody has contacted our cooperative, yet you say we are featured. That is nice, but it would be “fair” to have a say in this.
When might that happen? What are your plans to facilitate participation by the companies you aim to promote? And who exactly makes these decisions? What is the process?