We started today our North Region Certification Tour. We´ll be with Alejandra, the IMO Inspector, visiting our associate producers to renew the Fair Trade Certification.
: From Arbenz to Zelaya: Chiquita in Latin America!
: When the Honduran military overthrew the democratically elected government of Manuel Zelaya two weeks ago there might have been a sigh of relief in the corporate board rooms of Chiquita banana,! writes journalist Nikolas Kozloff.: Earlier this year the Cincinnati-based fruit company joined Dole in criticizing the government in Tegucigalpa which had raised the minimum wage by 60%.! Kozloff goes on to trace Chiquita´s: long and sordid! political history in Central America. [includes rush transcript]
Nikolas Kozloff, journalist and author of Revolution!: South America and the Rise of the New Left.
The Financial Times and IFC, a member of the World Bank Group, today announced Root Capital as the recipient of its Achievement in Banking at the Bottom of the Pyramid Award. The award recognizes ground-breaking financial transactions and initiatives that address the Bottom or Base of the Pyramid (BoP), the more than 4 billion people who live on less than US$2 a day. It highlights the development and delivery of innovative, viable, and replicable financial products and services that engage and empower the poor.
Root Capital, a nonprofit social investment fund that is pioneering finance for rural communities, provides capital, financial training, and market connections to grassroots businesses such as farmer and artisan cooperatives that build sustainable livelihoods and transform rural communities in poor, environmentally vulnerable places. Since its launch in 1999, Root Capital has provided more than $120 million in loans to 235 small and growing businesses, representing 360,000 individuals in 30 countries throughout Latin America and Sub-Saharan Africa.
Root Capital is honored to be recognized for addressing the needs of the Base of the Pyramid.: Filling the ‘missing middle´ of finance in developing countries the
underserved gap between microfinance and corporate banking plays an important role in alleviating global poverty,! said William Foote, Founder and CEO of Root Capital.
: Root Capital´s growing impact is the result of a collaborative, market-based approach that provides grassroots businesses with resources they need to succeed and thrive in
the global economy.!
Now in their fourth year, the FT and IFC awards recognize banks and financial institutions that have shown leadership and innovation in integrating social,
environmental, and corporate governance considerations into their operations. Winners were selected from a pool of 165 entries from 117 institutions across 42 countries. Other
award categories included, Achievement in Basic Needs Financing, Sustainable Investor of the Year, Sustainable Bank of the Year and Emerging Markets Sustainable Bank of
the Year.
: The financial crisis has necessitated a re-assessment of the way in which banks and investment houses operate, and the winners of these Awards are radically changing the
industry´s approach to risk and opportunity. These Awards recognise the responsibility institutions have in providing solutions to the world´s most pressing issues and how they
are meeting those objectives in a financially viable way,! said Lionel Barber, Editor of the Financial Times.
: The current crisis underscores that sustainability is at the core of building a healthy global economy. A growing number of financial institutions, especially those in emerging
markets, are driving this change by proving that promoting a clean environment and serving those at the bottom of the pyramid can be sources of business opportunities. We
are pleased these awards celebrate their innovation and leadership,! said Lars Thunell, IFC Executive Vice President and CEO.
About Root Capital
Root Capital is pioneering finance for grassroots businesses that build sustainable livelihoods and transform rural communities in poor, environmentally vulnerable places. By working with small and growing businesses such as farmer cooperatives and artisan associations, Root Capital aims to fill the: missing middle! of finance in developing countries the underserved gap between microfinance and corporate banking. Industry partners and investors include Ashoka, Calvert Social Investment Foundation, Citi Foundation, The David and Lucile Packard Foundation, Deutsche Bank Americas Foundation, Foley Hoag LLP, Green Mountain Coffee Roasters, Inter-American Development Bank, JPMorgan Chase Foundation, Kendeda Sustainability Fund, Peru Opportunity Fund, The Rockefeller Foundation, Skoll Foundation, Starbucks Coffee Company, and Trillium Asset Management Corporation. For more information, visit www.rootcapital.org.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing
countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new
investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.
Week 3: The Local Movement * Fair Trade and Organic Certification
Week 4: Marketing and the Growth of the Conscious Consumer
Week 5: Organizations: Social Change * Integration of Public and Private Interests
Week 6: Socially Responsible Supply Chains, from the seeds to the consumers
Week 7: Participation: Fair Trade in a Neo-Liberal Paradigm
Week 8: Social Entrepreneurship and Non-Profits; Field Trip: LES Girls Club
Week 9: The Global Fair Trade Movement & Market
Week 10: Bringing Fair Trade to your school and community; Guest speaker Amanda White, a lifelong interrupter* & the NYU Oxfam President 2007
Quantitative Results
Number of Agents* hired: 14
Number of Agents continuing to work: 3
Number of RCC* sessions: 216
Number of Consumers contacted in-store: 15,327
Number of units sold and amount of Social Premiums generated per product
interrupcion* fair trade (InFT*)
InFT* Oil
InFT* Chimi
InFT* Green Olive
InFT* Black Olive
Totals
625
1026
293
509
2453 UNITS
$171.88
$143.64
$32.82
$57.01
$405.34
Qualitative Results (Agent* Evaluations)
Questions: What was your favorite Wed session? What did you learn?What do you wish you would have learned? What was your favorite part of this internship?What was your least favorite?
AGENT* OF SOCIAL CHANGE: Emily*, Hamden, CT
My favorite part was getting to know more about fair trade and becoming more confident and comfortable talking about it.My favorite Wednesday session was our field trip to the Lower East Side Girls Club.
AGENT* OF SOCIAL CHANGE: Jesse*, Boulder, CO
Working with a company that is pursuing a green sustainable future for all world citizens was my favorite part.Being an environmental science and history major I enjoyed actually getting out in the fireld and spreading the ideology.
Being very shy the RCCs were tough at times, but it was a good learning experience. I learned about the many steps it takes to running a successful, new, green business.
AGENT* OF SOCIAL CHANGE: Leigh*, Ringwood, NJ
I really enjoyed the meetings, especially the one about certification.
I learned a lot about the economics of fair trade, which is great! I tend to be more people focused with is what drew me to fair trade to begin with but it was good to learn about different aspects of the movements.
AGENT* OF SOCIAL CHANGE: Kelly´e*, Atlanta, GA
My favorite part of the internship was being taken out of my comfort zone and thrown into speaking to people in the grocery stores.I have no fear with going to people and speaking about fair trade.My favorite Wednesday session was when Amanda came. I feel really confident in reaching out to ‘the other´ now!
I learned that along with the growing need for people to change the way they are consuming there are people who really care enough to teach.I have become the person who wants to change my patterns and am the person who wants to teach.I´ve also learned patience.
I would love to be a part of interrupcion* in the futureI never want to stop being a apart of it.I never want to stop being a part of it.If there is a way more offices can pop up around the country I´m down!If there are future trips to Argentina to meet the farmers and do any kind of work I am down!This Summer has been life changing for me.I have changed the way I think the way I interact with people, and the way I life life in general.I a m so thankful for this opportunity that interrupcion* has given me and even more thankful that I can bring what I have learned to the South and share with family, friends, and strangers. Becoming an Agent* of Social Change allowed me to change the lives of others and like I said, mine! I couldn´t have chosen a better Summer to be a part of interrupcion*.I am 21 and am in the prime of my youth and looking forward to the future and bringing interrupcion* with me.Thank you.
AGENT* OF SOCIAL CHANGE, Claud, Washington D.C
I enjoy just getting to talk to different people, who are genuinely interested to hear about fair trade. I enjoy hearing customers tell their family say, “Hey, you should ask her about the cool story behind these products.” I thoroughly enjoydiscussing responsible consumption and answering their questions about fair trade, but most of all leaving them empowered even just at the end of those few minutes.
My favorite Wednesday session was when we went to the Lower East Side Girls’ Club. It was very inspiring to meet those girls, who were making such a big impact in their community.
I learned a lot about communicating to different people and how to sell to them, not only the product, but also a lifestyle of consuming responsibly. I learned that I shouldn’t judge people’s appearances nor assume their knowledge and preferences.
AGENT* OF SOCIAL CHANGE Tara*, NYC, NY
My favorite part was definitely opening my eyes to a lot of consumer options and responsibilities that I wasn´t aware of before.As for the Wednesday sessions, I actually really liked in the beginning where we shared our experiences because it made me feel like I wasn´t so alone in any frustrations or oddities which may have happened.
My least favorite part was definitely the frustration of having people tell you they didn´t want to hear what you had to say, or that the didn´t want to support Argentina in any way.
I learned a lot.Coming into this internship I didn´t know much about fair trade, organic, or even all of the consumption talks that we did.
_______________________
AGENT* OF SOCIAL CHANGE: Tanya*, Fort Lee, NJ
My favorite part was realizing there is hope for the world.My favorite Wednesday session was learning more about connection chains and linkages.I learned about that in school so it was great to be able to apply the theory to something tangible.
I learned that fair trade and sustainability is marketable to people who appear as if they won´t care. I wish I would have learned a little bit more about other fair trade markets.
I´d love to continue learning about fair trade / doing RCC* session.Interrupcion* has found a successful and positive way to create development techniques that help instead of hurt and that is what my goal for the future is.
AGENT* OF SOCIAL CHANGE: Erica*, NYC, NY
My favorite part was getting t know other people who feel passionate about fair trade and having such great discussions.I really loved the session where we talked about fair trade verses local.
RCC* sessions were sometimes a little hard to handle.I didn´t realize how much marketing / sales would be involved when I applied for the internship, and I think talking about that more on the job description would be beneficial.
I learned SO much about fair trade, organics, social movements, certification, etc! I love how I feel more confident in my knowledge and feel comfortable holding conversations on these areas and telling others.
AGENT* OF SOCIAL CHANGE: Shaunagh*, Boston, MA
Favorite Part= Getting to know everyone, and having thought provoking discussions on Wednesdays. Favorite Wednesday Session= All!
Least Favorite Part= Lugging supplies to stores
I learned how much impact I as an individual can have on the lives of other individuals, and also how the efforts of many can reflect such REAL change.
Solving the food crisis is about helping farmers in poor countries stay afloat
: Today one child dies every five seconds from hunger. That fact alone should galvanize Agriculture Ministers from the world´s richest countries into action.!
Chris LeatherSenior Food Advisor, Oxfam International
More than 75,000 people will die of hunger during the three days that G8 Agriculture Ministers will meet to talk about the food crisis, said international agency Oxfam today. Oxfam is warning Ministers, meeting in Italy from 18 20 April 2009 that the answer to the global food crisis is not increased production in rich countries but support for the world´s poorest farmers.
A mix of new and old problems unfair trade rules promoted by rich countries, under investment in world agriculture, the economic crisis, and climate change are conspiring to keep 963 million people around the world hungry.
G8 countries have, for decades, steadfastly refused to make changes to agriculture and trade policies which undermine food production in poor countries. Rich countries provide more than $125 billion in direct subsidies to their own farmers whose produce gets dumped on poor country markets putting local farmers out of business.
By contrast G8 countries have delivered less then a fifth of the $20 billion in aid for agriculture which was promised at the UN Food and Agriculture Organization Summit in Rome in 2008 and it is still not clear if this money is additional to current overseas aid spending. According to the United Nations Food and Agriculture Organization $30 billion is needed every year to support farmers in developing countries.
Global cereal prices are 71 per cent higher than in 2005 and the UN´s Food and Agriculture Organization has warned that a new price hike is likely during 2009. The poorest people, who spend 50 to 80 percent of their income on food, will face hunger and malnutrition. Poor farmers meanwhile are not benefiting from higher prices because they lack access to markets.
Climate change will have a massive effect on agriculture especially in the poorest countries. It is estimated that reduced yields from rain fed crops in Africa and other parts of the world will put an additional 170 million more people at risk of hunger.
Oxfam calls on G8 countries to commit to long term, predictable assistance to small-scale food producers in developing countries. They must ensure that poor farmers have a voice in discussions aimed at addressing the food crisis and for the radical reform of rich country trade, energy, agriculture and financial policies that have helped create the crisis.
Chris Leather, Senior Food Advisor for Oxfam International said:
: Today one child dies every five seconds from hunger. That fact alone should galvanize Agriculture Ministers from the world´s richest countries into action.
: Agriculture Ministers must recognize that solving the food crisis is about helping farmers in poor countries stay afloat in these difficult times not increasing food production in rich countries.!
In Tough Times, Make Money and Make the World a Better Place with Fair Trade!!
INTERRUPCION* GLOBAL COMMUNITY SUPPORTED AGRICULTURE
We are all connected through our consumption* and production*.
We are aware that our purchase is power*
We have a desire to do good things.
We know that our actions, especially our collective actions, can have a positive impact. We also know the power that a group of consumers can have on their farmers.
We recognize that commerce is a tool that can fuel healthy communities and sustainable agriculture, prevent harmful chemical usage and protect water sources.
In solidarity we seek to make the world a better place.
Opportunity exists for greater collaboration- between producers and consumers, between artisans and lovers of art, and between wholesome food and hungry mouths.
interrupcion* seeks to partner with existing change agents: Non-profits, CSAs, groups of faith, and organized groups of conscious citizens. Together, we generate funds for your organization, and health and education resources for producer communities. Our collective work, consumption, production, and participation creates an efficient method to deliver authentic, nutritious, ethically produced food products from small family farms and cooperatives in Argentina to you and your communities.
Box contents:
interrupcion* Fair Trade Organic Extra Virgin Olive Oil, 16.9oz.
It turns out that a cup of coffee with a conscience might be a better recession-proofing strategy for a company than developing a new frappuccino or selling a new rock CD.
While java floggers such as the ubiquitous Starbucks and other food retailers are seeing revenue drop along with the global economy, fair traders those firms that purposely pay more for their raw materials like chocolate buds and coffee beans are posting positive sales growth, even in the current recession.
“Instead of 20 per cent growth, we’re talking more now in the five to seven per cent range,” said Bill Barrett, director of marketing for Planet Bean Coffee Inc., a Guelph, Ont., company that sells coffee made from beans purchased from poor farmers in countries such as Peru.
But that arrow is still pointing skywards.
“Growth has moderated. But, as one of my friends said, ‘Flat is the new up,’” said Juliet Morris, director of marketing for Just Us! Coffee Roasters, a coffee co-operative based in Grand Pre, N.S.
Meanwhile, over at Starbucks, the planet’s uber-coffee retailer, sales have fallen in the past two quarters.
Big growth on a small base
To be fair, the fair trade sector constitutes a tiny portion of production in the different sectors in which these companies generally operate coffee, chocolate, tea, sugar and small-scale crafts.
In 2008, for example, Canadians bought slightly more than five million kilograms of higher-priced, but fairer trade, coffee beans, according to TransFair Canada, a non-profit group that certifies fair trade products.
Fair trade coffee retailers pay more for beasns grown by small-scale farmers(Kent Gilbert/Associated Press)If that sounds like a lot, consider that this production would be enough to keep fewer than a million Americans, who each gulp down about three kilograms of coffee annually, happy for a year, according to Euromonitor International, a business information-gathering firm .
Or only half-a-million Norwegians, who average a bladder-busting 11 kilograms of coffee in a year.
The growth curve for fair trade products has been remarkably steep during the past few years.
In 2002, Canadians nibbled on a little more than 17,500 kilograms of fair trade cocoa, .
In the past seven years, Canada’s chocolate consumers gobbled down 639,000 kilograms of the fair trade version of the Mayan aphrodisiac, TransFair noted.
Similarly, Canadians consumed 425,000 kilograms of fair trade coffee in 2002; by 2008, that figure had jumped to five million kilograms.
Indeed, sales of fair trade sugar, tea and fruit have all enjoyed similar increases, TransFair said.
A new reason to buy
Conscientious importers argue that the superior quality of their products, predicated upon the belief that small-scale farms grow products that taste better, is one factor for solid sales.
Also, the paying public now figures that forking out an extra nickel for a cup of coffee, or 50 cents more for fair trade chocolate, is worth a higher price to help someone in a far-off land, Morris said.
In other cases, the uniqueness of their products, whether jewelry, rugs or office accessories, is a factor for which people will often pay a premium, said Len Rempel, chief financial officer of Ten Thousand Villages Canada, a fair trade handicraft and furniture retailer based in New Hamburg, Ont., which has stores across Canada.
But, to the degree that people are unwilling to store away their planetary concerns during the downturn in search of a cheaper cup of coffee, fair trade companies have built up a recession-slamming strategy for the 21st century.
“People want something more than just the product,” Rempel said.
Or perhaps more simply, “when they buy fair trade, they feel good,” Barrett said.
Economic laws still apply
But, even with reasonable growth, fair trade companies still face many of the business challenges with which traditional retailers are grappling.
For one thing, the slumping Canadian dollar has hurt the profit margins for many firms.
That is because what they buy, whether cocoa nibs, coffee beans or other raw materials, is priced in U.S. dollars. Thus, a Canuck buck that slipped by 15 cents U.S. from earlier projections translated into a cost hike for fair traders.
Unlike traditional retailers, fair trade companies generally do not ask suppliers for a price reduction in order to boost margins. After all, the whole reason for the existence of these firms is to ensure that small-scale growers get more money than they might selling to other companies.
So, a supplier price cut is definitely not in the cards, retailers said.
“It’s a given that we pay for the product what we said we would pay,” Rempel said.
For example, dealing with fair trade companies, a farmer might get a minimum of $1.35 US for a pound of beans.
There is little information on what more traditional coffee retailers pay farmers for a pound of coffee, fair trade executives said.
Anecdotally, Barrett said, farmers gets between 60 cents and 75 cents a pound.
Squeezing suppliers is exactly the strategy big players use to boost earnings without raising the price consumers pay.
Instead, fair traders have to look at other parts of their businesses to save pennies.
In November, sales for Planet Bean coffee hit a wall, Barrett said, resulting in the cutting of five positions within the organization.
In the end, however, socially conscious companies believe surviving the current recession means they will be in terrific shape to take advantage of an economic uptick.
“We think there is a large untapped market out there,” said Rempel, whose company posted $19 million in sales last year. “People are looking for something.”
And fair traders think that something isn’t about a new package, but about a new planet.
My name is Helene, and I have been an interrupter for the past several years. Recently, I moved to Southern California where I give tastings of interrupcion* Fair Trade products on an almost daily basis. I would like to relate an interesting occurrence at a very large Whole Foods store in El Segundo, California. The grocery store attracts a lot of Asian businessmen on tours of the area.
None of the men passing my demo table seemed to speak any English, and for the most part, they barely acknowledged me standing at the table as I invited them to taste Interrupcion* Fair Trade products. That is, until their Asian interpreter came along, who stopped momentarily in front of my table.
Since I have only seconds to catch a persons’ interest, I began to talk quickly about Interrupcion* Fair Trade products. As the interpreter translated the Fair Trade information, I got the feeling that the businessmen were still unmoved and not interested in tasting the products. The interpreter tried to help by tasting the Black Olive and giving the thumbs up sign.
I continued to explain as clearly as I could that Fair Trade is a process which positively impacts the farms, workers, and producers by building healthier communities while respecting our environment. This is done by guaranteeing that the farmers receive what they are entitled to: a larger share of the earnings that go directly back to them. Suddenly, the page turned. One of the men quickly whipped out a small note pad and pen and started taking notes furiously. I did not have any Interrupcion* Fair Trade business cards to pass out so I gave them one of my half empty demo jars of the Black Olive and pointed out the website for further investigation.
I am thankful for the interpreter who translated my explanation of what Fair Trade means in a nutshell — he seemed to understand the message and passed the information along so that the others could truly appreciate the meaning of Fair Trade. It was a beautiful connection, and I felt the impact of sharing the message of Fair Trade among this particular group of tourists. No matter who you are, the message is clear: everyone benefits from Fair Trade.
During the 2008 year, we visited all our Fair Trade certified producers and accompanied them in the process towards a permanent improvement that Fair Trade certification guarantees. We applied internal control systems to ensure the fulfillment of Fair Trade standards. In doing so, we defined effective implementations of production improvements as we articulated premiums assemblies that begin to define Fair Trade premiums investments.
All commercial operations that are carried out under a Fair Trade program generate premiums that will be invested in order to improve the living conditions of workers and ensure that our certified cooperatives are running smoothly. When the producer is independent, the assembly should determine how to use the whole percentage of the premiums.
Mechanisms of a workers assembly:
Previous to the harvest, a meeting takes place with the workers. In that assembly, the staffs of the Civil Association explain the meaning of Fair Trade, and the compromise that the farm owner has assumed along with the significance of a fair trade premium.
In that same meeting, the workers discuss what they consider to be the principal areas of investment. In this stage, the staff of Interrupción encourages participation among them.
The third function of the meeting consists of the election of the premium committee members. The staff of Interrupción try to encourage an outcome of elected members that represent the group as a whole and to guarantee an even balance, with participation by temporary and permanent workers. The Premium committee is responsible for the budgeting process and the implementation of the investments of the premiums. Of course, these decisions are made with the constant consultation of the Interrupción staff.
The Asociación Civil follows the decision making process to guarantee the appropriate operation of the committee.
The fair trade premiums are invested.
Along the country, we have found some similarities in the necessities of the workers
1- Health coverage difficulties: Not all workers have access to basic medical coverage, nor to discounts provided by their social security or the State. In this regard, each of the assemblies have proposed to create a health fund specifically made for emergency cases.
2- Outside Job training and productive entrepreneurship: Agricultural work is seasonal. Most of the workers migrate to other provinces after the harvest to look for new work opportunities. To prevent this migration some assemblies proposed to create: ESCUELA DE OFICIOS! (Job by trade school) where they can learn: Plumbing, electricity, carpentry and English among other skills. Besides, some workers have also expressed their desire to learn apiculture and pork butcher skills to generate alternative jobs in the farms.
3- Community support: In various opportunities, the assemblies have proposed to invest a percentage of the Premium to support local schools or improve life conditions of nearby towns.
~
Leandro Martelletti
Director Ejecutivo
Asociación Civil Interrupcion*
Grupo Interrupcion*
Fair trade coffee retailers pay more for beasns grown by small-scale farmers (Kent Gilbert/Associated Press)