While Starbucks leads in global coffee distribution and sales, advocacy groups are pushing the corporation to increase their fair trade practices. (Photo credit; Creative Commons via MediaGlobal)
By Rachel Pollock
May 12, 2010
Large coffee distributors and coffeehouse chains are feeling tremendous pressure from the public to adhere to fair trade policies. Although it is difficult to measure corporate social responsibility in terms of percentage of fair trade products in relation to total distribution, there are coffee chains that are being scrutinized and coffee distributors that are being honored for their policies.
On 26 April McDonald’s honored Green Mountain Coffee Roasters (GMCR) as the Global Best of Sustainable Supply in 2010. According to the press release, GMCR was chosen from hundreds of submissions from around the world and the award aimed at recognizing companies with the best business practices in sustainable supply.
Luciana Bonifacio-Sette, associate director of corporate partnerships at Save the Children told MediaGlobal, “With support from Green Mountain Coffee, Save the Children is working to improve the nutrition, food security and income generation for coffee farmers. The focus of all the programs centers on the ‘lean months’- Los Meses Flacos – when families face pronounced food insecurity.”
Pueblo a Pueblo is one of the fair trade organizations that GMCR supports through programs aimed at improving the lives of indigenous Guatemalans. “School Garden” is a program, which aims to educate Guatemalans about food security through cultivation of gardens. Rosemary Trent executive director of Pueblo a Pueblo told MediaGlobal, “Through support to local organizations like us, GMCR is helping indigenous Mayan children, their teachers and families to learn about food security through organic gardening.”
A report conducted by the NGO and advocacy group Global Exchange found that coffee is the world’s second most valuable market commodity next to petroleum. The United States purchases one-fifth of the market supply, making it the largest coffee consumer in the world. While the majority of the coffee is grown and cultivated in Latin America and Africa, small-scale farmers often fail to reap the economic benefits of the crop.
In recent years, large coffee corporations have felt pressure to comply with fair trade practices. Kim Pozniak of Catholic Relief Services told MediaGlobal, “Green Mountain Coffee Roasters is one example of how coffee companies can develop a more sustainable business model by increasing their investment in certified coffees that have social and environmental standards.”
While GMCR coffee distributors have been successful in implementing policies, corporate chains have been criticized for their lack of fair trade policies. The Starbucks Corporation dominates the coffee consumption market as the largest coffeehouse chain in the world. With this power comes the ability to inspire significant social change in the world’s poorest countries.
However, fair trade organizations have criticized Starbucks for not meeting the fair trade standards set by NGOs and advocacy groups. In 2006 Starbucks purchased 136,000 metric tons of coffee but only 6 percent of the coffee was fair trade certified. In 2007, Oxfam and a group of Ethiopian famers used grassroots activism to pressure Starbucks into formalizing an agreement with coffee distributors that would result in better fair trade policies.
From 2005 to 2009, Starbucks has worked to improve its fair trade policies, partnering with Save the Children and developing projects aimed at community outreach. The Shared Planet Initiative is one of these programs, helping to educate children and families in rural Guatemala and also improving healthcare facilities in Indonesia’s Aceh province.
The programs have brought bilingual education to 18 schools that serve more than 5,000 students and have reached health care facilities in 40 villages. In addition, Starbucks partners and employees have provided financial and personal support, establishing 16 libraries and 17 playgrounds, worldwide. In regards to fair trade, Starbucks also announced in 2009 that all of the espresso roast in the UK and Ireland would be 100% fair trade.
The implementation of fair trade policies from large coffee corporations is not being viewed as corporate social responsibility anymore but rather a compulsory action. While coffee corporations are profiting immensely from developing countries, coffee growing communities continue to suffer from poverty.
Fair trade organizations and the public are recognizing this discrepancy, but it is still uncertain whether these companies are fully devoted to this cause. GMCR provides an example as to how fair trade policies should be implemented and also sets the tone for other chains like Starbucks, who will inevitably have to adopt these policies.
Thanks for posting this story on coffee giants embracing Fair Trade. The CRS Fair Trade program is glad to see Green Mountain Coffee Roasters receive well-deserved recognition for its important philanthropic work around the world, including through some of CRS's own projects in Latin America. We are certainly proud to be allied with a business that distinguishes itself as a sustainability leader as well as good corporate citizen.
ReplyDeleteFor more examples of coffee companies who are fully committed to Fair Trade, we would also like to draw attention to the members of our coffee network here in the US. CRS Fair Trade partners with more than a dozen companies, from pioneers such as Equal Exchange in Massachusetts, to family run businesses such as Grounds for Change in Washington state, all of which commit to having 100% of their coffee beans produced under Fair Trade standards.
While I am not sure that all coffee chains will inevitably adopt Fair Trade policies, as the author suggests, at this very moment consumers can choose to support companies that uphold Fair Trade throughout their value chains, from "crop to every single cup." Please check out our website to find our partners in your region.
Thank you GMCR for sponsoring this year's Fair Trade Resource Network’s World Fair Trade Day campaign.GMCR is truly a leader in Fair Trade.
ReplyDeleteRead this:
Green Mountain Coffee Deepens Its Commitment to Fair Trade in Honor of World
Green Mountain Coffee(R) is honoring World Fair Trade Day on may 8, 2010 with a series of initiatives reaffirming its commitment to Fair Trade. The Vermont-based coffee roaster intends to convert two of its most popular and widely distributed varieties–Our Blend and Vermont Country Blend(R)–to be Fair Trade Certified(TM) in time for National Fair Trade Month in October 2010. The conversion allows Green Mountain Coffee to make an even greater positive impact on small-scale farmers, while driving additional consumer awareness of Fair Trade.
To celebrate World Fair Trade Day, Green Mountain Coffee is hosting a virtual tasting of Spring Revival(TM) Blend, a Limited Edition Seasonal blend which contains Fair Trade Certified(TM) coffee from Rwanda. The tasting will take place today–Thursday, may 6, at 6:00 p.m. and will be broadcasted live via USTREAM from the Green Mountain Coffee Visitor Center and Cafe at its headquarters in Waterbury, VT. The tasting can also be followed on Twitter at @greenmtncoffee using the hashtag #etaste. Interested participants can RSVP for the tasting via the following link: http://etasteandbefairgmc.eventbrite.com.
Green Mountain Coffee is also a sponsor of the Fair Trade Resource Network’s World Fair Trade Day 2010 campaign. The campaign theme is “Fair Trade your Home,” which shows consumers how they can support farmers and artisans worldwide by replacing everyday items in their homes with Fair Trade products.
Green Mountain Coffee offers one of the country’s largest selections of double-certified, Fair Trade organic coffees. a 10% discount on Spring Revival Blend and all other Fair Trade Certified coffees is available through may 9 at www.GreenMountainCoffee.com by using the Promo Code TRADE-WFTD.
“We are committed to the growth of Fair Trade as part of ensuring social and environmental responsibility throughout our supply chain,” said Lindsey Bolger, Director of Coffee Sourcing and Relationships for the Specialty Coffee Business Unit of Green Mountain Coffee Roasters, Inc. “Converting two of our most popular products to Fair Trade Certified is one way we can help small-scale coffee farmers invest in the quality of their coffee and the quality of life in their communities. it also means we can continue to deliver high quality, sustainably-sourced coffees to consumers.”