Specialty Coffee Retailer

SCR July 2011

Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.

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Sustaining BY PAN DEMETRAKAKES interest What’s the true value of ‘sustainable’ coffee? do it, have been the subject of scrutiny for decades, and now it’s more intense than ever. Coff ee is available with certifi cations from various third-party agencies relating to agricultural and labor standards, usually at a premium. Th e presumed payoff comes from appealing to the social conscience of coff eehouse patrons, oſt en with the aid of signs or other in- store messaging. It’s a compelling issue because almost all coff ee is grown in C Th ird World nations, many of which have dubious records in labor and environmental protection. Th e major certifi cation agencies report putting their seals on record-breaking amounts of coff ee. But some coff ee roasters and retailers are questioning the value of certifi cation, especially in light of current coff ee prices, which recently reached their highest levels in three decades. “Sustainability” has always been a nebulous concept, especially as applied to coff ee. Under the broadest possible defi nition, it falls into two areas: agricultural practices and labor issues, the latter comprising both wages and worker treatment. Wages are the most visible issue, perhaps because they’re easily quantifi ed and understood. Th e organization most prominent in this regard is Fair Trade USA (formerly TransFair), which has been certifying coff ee as Fair Trade for years. Th e Fair Trade symbol is applied to coff ee whose growers have been certifi ed by Fair Trade USA as having received a price high enough to insure adequate wages for farmers and their employees. Last year Fair Trade USA certifi ed 108.9 million pounds of coff ee imported into the U.S. IS IT REALLY FAIR? But not everyone in the coff ee industry is a fan of the Fair Trade concept—especially in times of high prices generally. “Somebody should consider changing the name,” says Kevin Daw, president/CEO of Heritage Coff ee, a roaster based in Seminole, Fla. “Right now it should be called unfair trade, because we’re paying a premium when the markets are already at unsightly high levels.” Fair Trade USA, like other certifi cation agencies, issues certifi cations to coff ee importers, who earn it by paying farmers the Fair Trade price. Th ey must decide whether to pass it along or eat all or part of it. Th e price depends on the quality of the coff ee, but as a rule, Fair Trade-certifi ed organic coff ee costs a premium of about 40 cents a pound. “Because the market price for is so high right now, the Fair The idea behind Fair Trade is insuring a living wage for coffee farmers in countries like Ethiopia. Photo courtesy Fair Trade USA 16 | July 2011 • www.specialty-coffee.com Trade minimum price becomes the market price,” says Katie Barrow, a spokesperson for Fair Trade USA. “In this scenario, the importer must pay at least market price plus an addition 20 cents per pound community development premium and 20 cents per pound organic premium. For high-quality coff ee, the prices can be higher.” an sustainable coff ee help you sustain your coff eehouse? Th e farmers who grow coff ee beans, and the ways they

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