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WEAVING THE WEB

Conversation with Daniel Jaffee
by Ron Mader

PLANETA FORUM

Publication date: April 2008

Daniel Jaffee

PHOTO GALLERY: Conversations


Daniel Jaffee is a sociologist at Washington State University. His book, Brewing Justice: Fair Trade Coffee, Sustainability and Survival, was published in 2007 by University of California Press and won Planeta.com's 2007 Book of the Year Award.

This vivid study of coffee farmers in Mexico offers the first thorough investigation of the social, economic, and environmental benefits of fair trade. Based on extensive research in Zapotec indigenous communities in the state of Oaxaca, Brewing Justice follows the members of the cooperative Michiza, whose organic coffee is sold on the international fair trade market. It compares these families to conventional farming families in the same region, who depend on local middlemen and are vulnerable to the fluctuations of the world coffee market. We are asking Dan some timely questions about fair trade and the evolving international movement.

For starters, could you briefly describe your background and interest in fair trade? And can you summarize the key argument of your book?

The main question I address in Brewing Justice is whether it is possible to achieve greater economic and social justice through the marketplace? The book has two story lines: one local, one global. At the local level, I ask whether fair trade makes a difference in the lives and livelihoods of small coffee farmers, their families and their communities....in other words, is it working? Here I focus on a case study of fair trade in action: a comparison of organized indigenous coffee producers in Oaxaca, Mexico who sell their organic coffee on the international fair trade market, and their neighbors who sell their conventional coffee onto the global market through local intermediaries, or coyotes.

At the international level, I ask whether fair trade can transform the 'big market.' Is it capable of altering the larger terms of commodity trade? Or is the global market instead transforming the fair trade alternative? Here I focus on the international fair trade movement and its charged politics, especially some current controversies centering around the role of transnational companies who are increasingly entering the fair trade certification arena, shifting the balance of power within that system.

In other words, what happens when a social justice movement based on an alternative market the draws the participation of some of the biggest corporate food conglomerates -- the main players in the deeply unjust global market. Can that market continue to be transformative?

These trends illustrate some of the challenges and deep contradictions of addressing goals of social justice and social development through market mechanisms.

As for how I got involved in this research: I have been working in rural Mexico since 1992 on a range of projects: conservation programs with U.S. and Mexican youth, teaching field courses through the University of Wisconsin-Madison, where I did my graduate work. My research looks at the effects of 'free' trade and neoliberal economic policies on the options for rural people to determine their own models for sustainable livelihoods. My masters thesis research focused on the Mexican community forestry movement -- in particular a case study in the state of Michoacán -- and how these initiatives were affected by the opening of the timber products market both before and under NAFTA.

I'm also a dedicated coffee drinker. I became interested in fair trade as a positive model for trading under an alternative set of rules, which has the potential to escape the most destructive social and ecological effects of volatile global commodity markets. I established a relationship with Michiza, a statewide organization of indigenous coffee producers in Oaxaca, and conducted the research for the book in two Zapotec communities in the Sierra Juárez where the organization is active.

A week ago there was considerable debate among the producers / venders at Oaxaca City's Pochote Market. A few of the venders would like to pursue organic certification. Others are pointing out that buying organic sugar or flour from Sam's Club does little to help the local economy. The proponents are mostly those who export -- mezcal and coffee -- and are pushing for a local organization to conduct the certification.

I read with interest a news story from the UK paper The Independent -- Food miles: The true cost of putting imported food on your plate: "If we want to help growers in poor countries, we must appreciate the difference between Fairtrade and organic labels - whether or not we are about the environment. Fairtrade guarantees that individual producers have earned a living wage and that their community has accrued some further benefits from the trade. Organic certification agencies have always been silent on the question of wages and are not a guarantee of food that is ethically or equitably grown."

So here are my questions -- are we being bullied into certification efforts that do not assist local economies? How does one evaluate the reputation of certification schemes? What sort of fair trade options do local market venders and customers have?"

It is true that fair trade is currently the only certification that speaks in meaningful ways to the social conditions of production--prices for farmers (or in some cases wages for laborers), the need for access to credit, democratic forms of producer organization. Organic certification, on the other hand, addresses questions of physical inputs and production processes--whether or not crops are produced with synthetic fertilizers and pesticides. However, while demand for organics stems largely from consumer concerns about health and ecological integrity, eliminating agrochemicals clearly benefits the health of workers as well.

You also ask about the options of vendors and small farmers in the global South who are producing for and selling to local markets. It's understandable that people see organic certification as one path to added value--there is the potential of a price premium if local consumers are willing to pay more for organics. Mexico and several other nations have seen in recent years the development of national certifiers, which reduce costs of organic inspection and certification, and provide more culturally appropriate services. Mexico is also home to a very interesting initiative--the first in the global South--that has created a fair trade certification system for the domestic market. It's called Comercio Justo Mexico and is now recognized by the international body Fairtrade Labelling Organizations (FLO) as one of the 20 national certification initiatives worldwide.

However, the truth is that currently, neither organic nor fair trade certifications provide customers with any information about the larger business practices of the companies whose products bear these labels. Fair trade has attracted the participation of large corporate retailers including Nestle', Coca-Cola, Procter & Gamble, Starbucks that purchase a token percentage of their total supply under fair trade prices/terms, but the seal doesn't help consumers distinguish these players from the smaller, 'ethical' or 'movement-oriented' retailers with long-term relationships in producer communities, who sell 100% fair trade products and who pioneered the fair trade movement.

These divergent approaches also play out around questions of the appropriate level of the fair trade minimum (or base) prices, which in coffee have lost a significant percentage of their purchasing power to inflation. There is now a growing internal effort within the fair trade movement that aims to address some of these concerns.

But many small farmers who are disadvantaged by the unfair terms of trade in the global economy (and the hypocrisy of continuing export agricultural subsidies by rich country governments) are finding that their best bet is actually outside the formal certification systems altogether--in more local arrangements loosely grouped under the term ;solidarity economy.; The solidarity economy movement is growing rapidly, especially within Latin America. See for example: Economia Solidaria.

Now that I have read your book, I have a better understanding of how you approach these issues. The writing is first-rate. You spent considerable time in Oaxaca and witnessed first-hand how the fluctuations in coffee prices affected rural communities. In Oaxaca City we see the growth of a number of cafes, some of which work with small-scale producers. Do you have any suggestions on what consumers in Oaxaca should look for or what consumers outside Mexico should look for when buying coffee from Oaxaca? Also, do you have any suggestions about how businesses in Mexico could improve their linkages to rural communities?

I've spent plenty of time in Oaxaca City and have enjoyed many of the cafes on that list. Consumers who are looking to make a positive impact on farmer livelihoods with their coffee purchases might want to ask a few key questions:

1) Does the coffee come from small farmers or from estates/plantations? More than 2/3 of the world's coffee (and a similar proportion of Mexico's) is grown by small producers, typically on their own small plots of land. While there are certainly some progressive estates with enlightened labor and environmental practices, it is small campesino (and especially indigenous) coffee farmers who are the most vulnerable to the volatile terms of trade in the global market, and who are also the stewards of the most ecologically-diverse shade coffee lands in Mexico and the Americas.

2) If the source is small producers, are they organized? The international fair trade system only certifies coffee from organized small producers, which typically means they have joined together in democratically-controlled cooperatives or associations. Banding together cooperatively increases farmers' power in the marketplace and allows them to negotiate with buyers on a more even footing.

3) What is the nature of the relationship between the cafe or roaster and the producers who grow their coffee? The fair trade system, despite its flaws, does stipulate minimum prices, long-term trading relationships and the availability of pre-harvest financing. If the coffee is not certified, does the roaster/retailer engage in these practices, and how is that documented?


Daniel Jaffee
Brewing Justice: Fair Trade Coffee, Sustainability, and Survival
- Coffee! The author explores what happens when a social justice movement based on an alternative market draws the participation of some of the biggest corporate food conglomerates.
g Book of the Year Winner

Book

AUTHOR

Ron Mader is the Latin America correspondent for Transitions Abroad and host of the award-winning Planeta.com website.



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