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Archive for the ‘Fair Trade’ Category

It’s mid-March which means Equal Exchange Banana Month is in full swing! This March also marks our 10th year in the banana trade. To celebrate, we are promoting a new web documentary called Beyond the Seal.

This is the second of a three-part series that digs deep into Beyond the Seal (missed Part 1? Click here).

A recap: Beyond the Seal is the story of a group of small farmers – and the activists and visionaries behind them – striving to change the banana industry as we know it. Through a model of business called Fair Trade, these producers are building a more just supply chain, one that prioritizes their health, their families and their community.

Beyond the Seal is a web documentary divided into 5 chapters.

THIS WEEK: Watch Chapter 2

In Chapter 2, meet Anibal Cabrera, a small-scale banana producer and member of the AsoGuabo Cooperative in Ecuador. Take a peek into Anibal’s life and learn how the Fair Trade model strengthens and empowers AsoGuabo.

GO further, get together with your staff and answer the following questions:

  1. How does the Fair Trade model support small producers?
  2. Under Fair Trade, producers receive a dollar per 40 lb. box of bananas as social premium. Do you see any difference between the premium and development aid or charity?
Watch now at beyondtheseal.com

Banana Month Buzz

Look who’s watching! A very special tweet from Marion Nestle, NYU Professor and renowned author of Food Politics:
Shout out to Honest Weight  for celebratingBanana Month with this incredible display! That’s 32 cases of bananas.
Check out this eye-catching display atLebanon Co-op in NH!

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SPP – Símbolo de Pequeños Productores
February 8 at 2:57pm
Press Conference by Marisol Espinoza Cruz, Vice President Peru
BIOFACH 2016, Convention Centre, Nürnberg Messe, Germany
Date: Thursday 11/February/2016
Time: 15:00 – 16:00 hr
Room: Stockholm Room, NCC Ost, Level 2
Issue:

The Fair Trade movement has enjoyed for decades countless successes for small producers in the South. Currently the small coffee producers are in a very difficult context. In the case of coffee, the attacks of the disease ‘yellow coffee rust’, since 2012 to date producers families have lost between 20 and 80% of their production. In addition, since November 2014, the international coffee price has been continuously falling. What is the importance and challenge of fair trade in this context? Is fair trade still the best option to support the movement of small coffee producers in the world? How?

In the case of cocoa, the chocolate market is virtually controlled by a few multinational corporations. Operations are of immense scale. Does fair trade can still guarantee the traceability of the product to consumers and, at the same time, support smallholders in their path to greater dignity and strong local economies? Under what conditions?

Claiming purchases under the concept of fair trade has become an attractive business case for brands. Currently there are many fair trade labels. However, is all fair trade the same? What is the vision of small producers themselves?

Through the SPP label, Small Producers’ Symbol, organizations of small farmers and families that practice small-scale farming have managed to provide a guarantee for the consumer and set themselves the highest standards of the fair trade market, backed by independent certification.

Peruvian Vice President Marisol Espinoza Cruz, will talk about these issues from her point of view and experience as a person who´s professional formation happened in the middle of small producers and who has been promoting and defending the causes of small farmers throughout her career.

Contact Vice President Marisol Espinoza Cruz: http://www.vicepresidencia.gob.pe
Contact SPP: http://www.spp.coopcom@spp.coop – Tel: +52-55-5364 1254
SPP during Biofach: dire@spp.coop – Cel: +52-1-55 9197 6470

Read her speech here this Friday, Feb. 12

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Last week our friends at the Coop Food Stores in Hanover-Lebanon, New Hampshire sent us these photos of a large display they have created to promote our exciting coffee partnership in which we attempt to link consumer coop members in New Hampshire, worker coop members at Equal Exchange, and indigenous small farmer coop members in Chiapas, Mexico.

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To read more about this exciting partnership, click here.

Last Thursday, we reposted a link to an article written by Amanda Charland, Director of Outreach and Member Services at Co-op Food Stores, about her visit to CIRSA last year and the connection between coffee, climate change, and co-ops.  Click here to read.  Later this week, we’ll feature two more articles on this topic written by other members of Co-op Food Stores who had the opportunity to visit CIRSA as part of this new sister co-op relationship Equal Exchange is helping to develop.

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By Ted Weihe, Consultant to Equal Exchange

Yesterday in Paraguay and earlier in Bolivia, Pope Francis praised co-operatives and other localized organizations that he said provide productive economies for the poor (See NYT, July 11, 2015).

“How different this is than the situation that results when those left behind by the formal market are exploited like slaves!” he said. In his Encyclical Letter, Laudato SI (available on line), he said “Liberation from the dominant technocratic paradigm does in fact happen sometimes, for example, when cooperatives of small producers adopt less polluting means of production, and opt for a non-consumerist model of life, recreation and community.”

He has reframed inequality and poverty around a new economic theory and defining it in moral terms. “Working for a just distribution of the fruits of the earth and human labor is not mere philanthropy,” he said on Wednesday. “It is a moral obligation. For Christians, the responsibility is even greater: It is a commandment.”

Francis acknowledged that he had no new “recipe” to quickly change the world. Instead, he spoke about a “process of change” undertaken at the grass-roots level by priests, NGOs and community organizers.

“What can be done by those students, those young people, those activists, those missionaries who come to my neighborhood with the hearts full of hopes and dreams but without any real solution for my problems?” he asked. “A lot! They can do a lot.”

“You, the lowly, the exploited, the poor and underprivileged, can do, and are doing, a lot. I would even say that the future of humanity is in great measure in your own hands.”

But, if there are “real solutions” in promoting co-ops, the Catholic Church, community leaders, NGOs and Fairtrade advocates have a lot to learn, too.

Most credit unions in Latin America were formed by priests and nuns. Yet, it took decades to restructure them as sound financial institutions for the poor with appropriate interest rates for savers, and market-based loans to members.

Similar U.S. efforts in the 60s and 70s to create worker co-ops also failed because they were seen as utopian democratic experiments instead of successful group businesses where worker-owners needed to provide equity. In the case of Equal Exchange, they allowed for non-voting investors to raise capital – all with a profit focus while true to their democratic workplace and mission to buy from and support small farmer co-ops.

We know that cooperatives in Western countries probably did more to reduce poverty among the poor than any other interventions. For example, in the U.S. during the 1920s recession in agriculture after World War I, most of today’s producer co-ops were formed; in the 1930s rural credit unions took off during the Great Depression; and in the 1940s electric coops transformed rural America. This same U.S. experience parallels successful earlier co-ops in Europe, in Japan with General MacArthur reforms after World War II and in India where in the 1960s, they created the most successful and largest small farmer dairy co-ops in the world. Many of the most successful co-ops in the world such as Sunkist were formed before 1900 – so there is a rich and long history to draw on.

Yet, we in the development field have not learned the most important lesson about co-ops in that they must be properly structured financially so that the poor contribute through their usage and delivery of products, and they generate member equity so that the co-op can prosper and grow. Do-gooders, Fairtrade advocates and industries such as chocolate companies that are dependent on small farmers to provide their raw products, cocoa beans, do not understand co-ops. Donors certainly do not when they shower money on co-ops “to help the poor” instead of creating sustainable co-ops that can be self-supporting and uplifting through the farmers own efforts.

With Equal Exchange’s on-going project with cocoa co-ops in Dominican Republic, Peru and Ecuador, they have proven that getting poor farmers to contribute to their co-ops through the delivery of products is not only possible, but supported by managers, boards of directors and delegates to the General Assembly. Members now have a financial stake in their co-ops which generates lower bank loans, more purchasing of cocoa beans from fellow members and greater loyalty to the co-op. They are breaking away from the current donor-driven paradigm.

So we do have successful models to respond to the Pope’s call, but how can we spread the message, design and advocate true co-ops? At least, I have tried to lay out these premises in my book: Saving Fine Chocolate: Equity, Productivity and Quality in Cocoa Co-ops. But, I feel like a lonely voice. I hope that others can join me.

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Many thanks to Chuck Bordman for this creative 48-second video about the corporatization of Fair Trade and the work of committed brands to support small farmers and Authentic Fair Trade in this context.

 

 

To read the full comic book, “The History of Authentic Fair Trade, click here.

To learn more about Fair Trade vs. Free Trade, click here.

To learn more about Chuck Bordman and his work, click here.

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On our way back from a meeting with one of the women's groups organized through FTAK, somewhere between the towns of Kudiyanmala and Vellad.

A brief stop on our way back from a meeting with one of the women’s groups organized through FTAK, somewhere between the towns of Kudiyanmala and Vellad.

Fair Trade Alliance of Kerala, (FTAK) a 4500-member co-operative of small farmers in southern India, has created an exciting initiative to articulate and put into practice what most fair trade farmer co-operatives understand empirically.  Fair Trade is important but it’s simply not enough.  It’s a starting point; a means to an end; certainly not the end itself.  Like kicking off the day with a well-balanced breakfast, selling cash crops on fair trade terms is a  foundation from which so much else becomes more possible.  But, like the role that a healthy breakfast plays in someone’s day, it is what comes afterwards that brings true community empowerment, development, and social change.

Meeting with a women's group in the community of Talakala.

Meeting with the Thalakallu women’s group in the community of Asankavala.

FTAK is not the only Fair Trade co-operative that has initiated specific programs to protect the biodiversity of their regions; ensure that their members have access to diverse sources of locally-produced, nutritious food; and recognize and actively promote the role of women in all areas of family, co-operative, and community life. Many fair trade co-ops carry out programs in some of these areas.  However, by consciously articulating their Fair Trade + 3 Initiative in their mission statement, FTAK sends a strong message to their members and the world about their values and priorities. By elevating these issues to the same level as their fair trade program, the forward-thinking Kerala farmers demonstrate that women, the environment, and food security are three interwoven strands, interdependent and of equal importance. Fair Trade is a tool, but a successful co-operative needs many tools in its toolbox.

In December 2013, four of us from Equal Exchange traveled to Kerala where we had an opportunity to spend five days with the farmers of FTAK.  We spent many hours traveling through the coconut-tree studded tropical landscape of northern Kerala; meeting with farmer groups, women’s groups, FTAK staff and board; touring small farms lush with fruit trees, wild and cultivated plants, and gardens;  visiting cashew and coconut processing plants; and participating in dinners, festivals, and even a party down by the riverside.  Throughout all this, we learned about FTAK’s organization and structure, the production and processing of their coffee, cashews, coconuts, and spices which they sell into the local and international market.  We shared our views on Fair Trade and learned more about their ideas and initiatives on gender equality, biodiversity, and food security.

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Unfortunately, our trip didn’t overlap with the Seed Exchange, one of the most important events that FTAK organizes as part of their Fair Trade +3 initiative.  Farmers from all over Kerala save their best seeds throughout the year in anticipation of this agricultural fair.  Each January, they then come together to trade seeds, learn new farming techniques, and buy and sell livestock and domesticated animals.

We were pleased, however, with the opportunity to participate in another exciting FTAK activity, the Green Leaf Festival, held at the Ujjaini Auditorium in the community of Kelakam.  As its name indicates, the festival is both a celebration of the biodiversity of the region, and a food security initiative designed to bring people together to learn how to identify, prepare and cook with the organic plants that grow wildly on their farms.  Walking into this beautiful community center, with its clean white walls, open windows, high ceilings, and full-out party decorations, we could feel the excitement, anticipation, and significance of the event. We were immediately greeted by a few of the women whom we had met the day before in Asankavala.  Dressed in the most elegant saris, they welcomed us shyly, but with warm smiles that immediately made us feel comfortable.

Individually, the FTAK farmers don’t own much land, but what they lack in acreage, they certainly make up for in biodiversity. We had seen this when we visited farms where the owners grow herbs and spices, vegetables, coffee, tea, cacao, henna, cashew, coconut, and other fruit trees.  In fact, an average FTAK farmer could have as many as 85 different crops and plants on his or her farm.  In addition to those plants they intentionally cultivate for personal consumption and income generation, there are many plants that grow wild on the farms.  Some of the knowledge about these plants and how they can be cooked or otherwise used has been lost over time.

Thus, the purpose of the festival:  over a hundred women (and a few dozen men) were invited to participate.  They were asked to bring with them a variety of “leafy greens” from their farms that they might not be familiar with, and in small groups, they would practice cooking with them.  They were also invited to bring food from their farms to prepare for lunch.  The day would end with a huge banquet of food entirely coming from and prepared by the FTAK members.

Posters lined the wall, showing the variety of wild plants, and their various properties and uses.

Posters lined the wall, showing the variety of wild plants, and their various properties and uses.

In the main auditorium, the event officially began with a formal opening, brief introductions, and some presentations about the Fair Trade +3 initiatives, the importance of food security and resource conservation, and the role of women in all of these activities.

Standing, on the right, Tomy Mathew, founder of FTAK.

Standing, on the right, Tomy Mathew, founder of FTAK.

In the meantime, in another room, the real work was happening!  All day long, small groups of men and women were washing, chopping, and cooking a variety of food – and many leafy greens!  In small groups, they exchanged ideas about the greens and learned to cook them with the idea that they would go back to their communities and train their neighbors.  In other groups, women were preparing the food that would eventually become the banquet we would all enjoy before the end of day:  everything we ate that day was grown and prepared by the participants themselves.

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Finally, the formal activities were finished and the eating began!  In a flash, the men set up two long rows of tables and chairs.  Boom, boom, boom, they lay down paper table cloths, and a large banana leaf to serve as a plate.  We all sat down and the men came down the row one at a time, each scooping a portion of some spicy, mouth-watering, vegetarian dish, spiced just right (all spices also coming from their farms).  In no time at all, we had finished our meals, and in a flash, the entire paper cloth, banana leafs and food was lifted from the tables, and the tables reset until everyone had eaten their meal.

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Efficient, economical, and environmental.  Zero waste.  And delicious to boot!

We had many fascinating days in Kerala and we learned enough to fill an entire notebook on that trip.  Coconut processing, cashew processing, visions for the future, challenges, and successes.  At another point, we’ll share some of those stories as well.

For now, I’d just like to end with some photos of the women we met at the meeting who later were part of the Green Leaf Festival, greeting us like long-lost friends when we saw them in the community hall.

Janaki Kalla

Janaki Kalla

Lissy Joy

Lissy Joy

Rosamma John

Rosamma John

And finally, while I’m on the topic of festivities, here is a one and a half minute video you might enjoy of our bonfire party down by the river.  Those FTAK farmers are not just hard working and visionary, but they are full of life, incredibly fun, and such gracious hosts!  Thanks to FTAK and to all those of you who buy our cashews and help support this entrepreneurial and innovative small farmer co-op!!!

Thanks also to my colleagues and traveling companions, Wells Neal, Deepak Khandelwal, and Rink Dickinson! Photos taken by Wells, Deepak, and Phyllis. Riverside video put together by Deepak Khandelwal.

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On our way back from a meeting with one of the women's groups organized through FTAK, somewhere between the towns of Kudiyanmala and Vellad.

A brief stop on our way back from a meeting with one of the women’s groups organized through FTAK, somewhere between the towns of Kudiyanmala and Vellad.

Fair Trade Alliance of Kerala, (FTAK) a 4500-member co-operative of small farmers in southern India, has created an exciting initiative to articulate and put into practice what most fair trade farmer co-operatives understand empirically.  Fair Trade is important but it’s simply not enough.  It’s a starting point; a means to an end; certainly not the end itself.  Like kicking off the day with a well-balanced breakfast, selling cash crops on fair trade terms is a  foundation from which so much else becomes more possible.  But, like the role that a healthy breakfast plays in someone’s day, it is what comes afterwards that brings true community empowerment, development, and social change. (more…)

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