STiR coffee and tea magazine

Volume 3, Number 4

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STiR tea & coffee industry international 33 In some cases, North said, the cooperatives have affected local economies to the point that small farmers now have access to an even greater share of the wealth and oppor- tunity of the coffee trade. The expansion of fair trade certification to more plantations, an initiative of Fair Trade USA called "Fair Trade for All," raises red flags for many including North. He believes that the plantation system has been one of the biggest barriers to a successful fair trade market in tea. North contends that the plantation system is in direct opposi- tion to the concept of empowerment and worker independence. Benefits are granted (and taken away) by the plantation owners, restricting the freedom that workers may feel to advocate for their needs and to pursue change. "We want the tea industry to show something as dramatic as what has happened with coffee. Otherwise we're just propping up the plantation system," says North. Ahmed Rahim, founder and c.e.o. of Numi Tea, feels that another fundamental problem with fair trade currently is that there are not enough manufacturers and im- porters working directly with the farms. He worries that too many are relying on middle men and certification companies in a way that muddies that important relationship. "It takes time flying out and meeting with the farmers, but it's important to us," he said. Rahim said bureaucracies in many countries make it hard for the farmers to see the direct flow of money from these programs. Engaging directly with the farmers as much as possible ensures that the farmers can see that the importers are truly interested in their well-being and that the money is a result of that relationship. Malawi: A microcosm of fair trade's challenges The Fairtrade Foundation and Fairtrade International cite Malawi as one of their great successes in Fairtrade work. An examination of their current report, "Branching out: Fairtrade in Malawi," brings to clarity key examples of the struggles of Fair Trade. Three tea organizations that are currently certified were presented: Sukambizi Associa- tion Trust (SAT), the Eastern Outgrowers Trust (EOT) and the Satemwa Tea Estates Limited. Together these groups comprise more than 15,000 members. On the positive side, SAT and EOT both reported dramatic increases in membership and SAT reports larger proportions of their tea sold as fair trade. Members of SAT value the fair trade premiums they receive and their improved access to sales markets. EOT has doubled their production and has taken steps toward long-term sustainability through the cre- ation of nurseries and the construction of a grain mill. They also assist the community beyond the workers through improvements to bridges, schools, water systems and medical services. Satemwa reported improvements to their food security and benefits like maternity leave, protective clothing and overtime. There is more to the story, however. All three of these organizations expressed concerns about the benefits as they expe- rience them. SAT has not improved their productivity, even with more members. They worry about being dependent on the estate to sell their tea and feel that the prices they receive are too low. EOT members also worry about the price they earn and are con- cerned that they are too reliant on the premiums, rather than preparing for long-term sustainability. As a whole the members do not feel they are in a position to negotiate even if the price they receive as a smallholder doesn't cover production. What does this mean for fair trade? For some companies, engaging in the fair trade program is a labor of love, a fundamen- tal part of their vision for how business should be conducted. It has a myriad of moral justifications, but it's also good business. Numi Tea, North America's largest importer of fair trade tea, is one such company. "When you work with an agricultural product in these countries without running water or a pencil to write with, it's common sense to make sure the workers are well taken care of," says Rahim. "They're your partners. They're not a commodity." Rahim believes that fair trade practices and efforts to create true, respectful relation- ship between producers and importers, is mutually beneficial. He thinks the challenge can be to ensure that the approach is not imperialistic, but rather to act as a sounding board, so that the workers can collaboratively and collectively create their own plan. On the importer side, the effect is better quality. "It's the labor and the handpicking Photo credit: Nathalie Bertrams/Fairtrade International Equal Exchange director of green bean purchasing, Todd Caspersen, at the CECOVASA co-operative mill in Juliaca, Peru. Photo courtesy of Equal Exchange.

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