Corporate Companies Fail to Build Capacity and Transparency

International

The definition of “Capacity building” in regards to the International principles for Fair Trade states:

“Fair trade is a means to develop producers’ independence. Fair trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.”

Now that Fair trade coffee is a good investment, corporate America wants a piece of the profits, too. One of the biggest corporate buying giants here in the US, Wal-Mart, is staking their claim in our fair trade markets. The following link to a recent article from CNN-Money, champions Wal-Mart’s deal with TransFair and USAID to develop more Fair trade Brazilian coffee. One thing the article does make apparent, WalMart’s fair trade certified coffee is not going to be fresh by the time it hits US store shelves. The coffee is being roasted at a factory in Brazil called Cafe Bombia.

Wal-Mart Buys Into Fair Trade

It is disheartening to fair trade consumers and small companies who cherish fair trade’s transparency, when corporate entities start buying land in foreign countries and calling it fair trade. Fair trade is not entered into in the board room or through buying land in foreign countries, but through the long-term investments in a country’s community and it’s people. What happens to the intangible gifts of culture and language when fair trade becomes a “bottom-line” commodity, run by corporate America’s buying power?

In the US market for fair trade coffees, cocoa, bananas and teas, remember that the focus of Fair Trade is on empowering communities overseas, so that one day, they can independently compete in global trade. How closely monitored are these global commodities to make sure they uphold all of our fair trade principles? Remember when, earlier this year, Starbucks started trademarking coffees from Ethiopia, no one thought much about it, that is, until the whole story came out…

Starbucks vs. Ethiopia

Fair Trade consumers should be weary about products they buy from Transnational companies. These companies may represent a fair price through certification, but does this mean the company cares about the sustainability of the people or the environment from which the commodities came?

Fair Trade’s third principle is transparency and accountability:

“Fair trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.”

Demand transparency from companies who supply your fair trade goods, ask to know the whole story that includes the names of people, places and the cultural history of the countries that participate. Transparency is one of the fundamental principles of fair trade. Since when did corporate America care about social justice for small farmers?

admin @ December 17, 2007