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Ethical Trade in the Global Coffee Industry:

‘The efficiency of Peter Griffiths’ idea for ‘ethical consumerism’ is demonstrated through the case of ‘the Earth Friendly Coffee Company’’

A dissertation submitted to the University of East London for the degree of MSc NGO and Development Management in the School of Law and Social Sciences

2012

ANDREA SARAH CHARLES (U1018856)

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Abstract

This paper examines whether alternative trade relations can produce increased economic outcomes for agricultural coffee producers that conventionally receive exceptionally low returns on their produce. Through reviewing current discourse on the topic as well as a global coffee supply chain analysis, it has been identified that by expanding processing capability, pursuing property rights and adding symbolic meaning to the final product a greater share of the market value can be achieved. Through ethical trade models it is possible to assess working models of this dynamic; where the potential for better wellbeing, socioeconomic outcomes are being played out in Guatemala. Additionally inefficiencies in trade systems and draconian policy controls have continued to skew markets to produce an effective coffee paradox with diminishing returns in the south verse a boom in added value in the north. This paper extensively reviews national and international controls; through examples they can be seen to produce a status quo underpinned by materialism that marginalises traditional farming practices, while at the same time produces ever greater environmental damage. Through a trading in ‘Ethics’ this paper establishes a basis for positive trade models and identifies where efficacies and transparency can reveal pockets of lost value by: reducing corruption, inaccurate/inconsistent recordings on stock markets, removing subsides and the implementation of ethics through voluntary codes to produce and maintain socially and environmentally responsible trading relationships across the board.

1.0 INTRODUCTION

The drink commonly referred to as ‘coffee’ derives from Coffea arabica and Coffea

canephora (Robusta) cherries. Two other species of Coffea liberica and Coffea excelsa have

disappeared from the markets since the Second World War. (Daviron, 2005, p51) Coffee is

the single most important tropical commodity traded worldwide. (Johnson, 2012) Its

protracted history spanning centuries coupled with the fact that the primary processing of

coffee is documented to provide livings for up to 20 million rural families; an estimated 125

million people across 50 developing countries makes the notable relevance of coffee in our

daily lives as either consumers or agricultural farmers palpable because of its longstanding

presence of linking north –south employment within international trade networks. If this

industry were able to harness itself with pro-farming sustainable practices and credible ethical

trading, then it holds the potential to become a real beacon in the post modern development

agenda. However it is far from being a homogenised, connected entity. This study aims to

evaluate ‘green shoots’- in the form of reviewing case studies; actual models of ethical

trading within the global coffee industry; before broadening the debate to assess ethical

trading and sustainability in wider development discourse.

The main sections include: (1) an introduction to the coffee sector and why this commodity

is deemed special; (2) a theoretical overview that seeks to classify and document a notion of

sustainable development as a prerequisite for this study; as well as establishing its direction

and where it fits within broader approaches to development. It is important to define an

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approach to development that shows a clear framework and sets the scene for the main text.

Section (3) documents a literature review critically analysing key theoretical perspectives on

sustainable agricultural practices, ethics, counterproductive international agricultural policy

and a review of commodity fetishism and the limits of ethical consumerism. Section (4)

outlines the research methods adopted for this study; these include: interviews, reviewing

secondary data, a supply chain analysis and field visit to a UK roasting facility. Section (5)

consists of a mainstream international supply chain analysis; assessment of value

denominations and an examination of ethical trade models through a case study approach.

Section (6) outlines a review of the study, along with the value it adds to current discourse. It

establishes a reputable notion of ethical consumerism demonstrated through an American-

Guatemalan trade model that embodies innovation; prescribed information sharing and a self-

sustaining marketing system that produces employment opportunities for an indigenous

mountainous coffee producing community in Central America.

As with the global commodity supply chain for products such as tea and rice, after production

a myriad of other agencies, businesses, services and processes become interconnected

between cultivation and consumption. Broadly speaking within the coffee sector, green

beans are often transported for washing and to sorting facilities; bagged up; taken to be

exported- in which case customs and airfreight become engaged in the process, further arrival

ports, warehouses and transport to coffee houses or shops. Coffee has a huge footprint!

(Weissman 2008) Beyond this, countless other stakeholder industries and services are

connected through producing the cups, packaging, sacks, print templates, branding,

marketing, research and development, coffee machinery and so on. Although the global

coffee supply chain produces a lot of revenue and employment for a vast number of sectors

(and people worldwide), this paper will seek to isolate a core function within the process and

identify how small pockets of the sector work internally to embody concepts of sustainability

and ethics in a hugely competitive global marketplace.

The area of coffee and in some respects tea are uniquely placed through marketing and

branding to encourage the consumer to make informed ethical choices about what

development initiatives they would like to support; this paper will look in detail at what can

be described as a *boom in so-called ethical products; limits to ethical trade; how it has faced

increased criticism in respect of the sectors limited transparency and the ineffectiveness of

major ethical brands- is being vocalised at micro and macro levels in a number of different

forums. This will be explored more in the literature review. This paper will focus on a small

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area within a gigantic global paradigm. In essence the underlining question is how to

reconcile the current coffee paradox: namely a coffee boom in consumer countries and a

coffee crisis in producing countries. This will be explored through a supply chain analysis

approach and case study review of three separate companies working within the sector of

sustainable development, ethical trade. Additionally through interviewing a prominent

economist working within development this study will also seek to identify credible ways to

promote better terms of trade for rural coffee producers across the board from a systematic

analysis of trade systems and efficient markets.

* As can be demonstrated through the Fairtrade brand which has experienced soaring sales from $600 million in 2002 –to $895 million in 2003- to $3.4 billion in 2009. (Johnson, 2012, p322) Despite indisputable increases in sales, the brand fair-trade still represents a tiny share in the overall international trade markets.

1.1 COFFEE: A slice of history

Coffee as it is universally referred to is documented to have been first discovered in

Northeast Africa. While there are various accounts in circulation, a well-known tale about

how an Ethiopian goat herder noticed that his herd was distinctively livelier after eating

certain berries is the most well-known. The goat herder called ‘Kaldi’ curiously tried some

of the berries himself and discovered that he had a burst of energy. According to the tale,

Kaldi was observed by a local monk who too began to experiment with the berries; they were

later boiled and became a popular drink around the 15th century. (Johnson, 2012, p285)

Ethiopians have carried forth an elaborate (often daily) ceremony of roasting coffee beans

over charcoals and serving up the thick black liquid in small (espresso sized) cups.

(Pendegrast, 2001) ‘By the mid-sixteenth century, the drink had come to be considered as

important as bread and water’. (Johnson, 2012, p285) Pendegrast (2001) also notes other

significant periods in coffee’s history as: widespread exchanges through trade with Arabs

across the Red Sea; exportation during an early Ethiopian invasion in the Yemen in the 16th

Century; following an occupation in Yemen by the Ottoman Turks (in 1536) coffee became

an important export for the Turkish Empire; and in 1616 the dominant Dutch trading system

took heed and control, followed by British, Italian and more extensive European

participation. (Pendegrast, 2001, p3 -15)

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1.2 WHY IS COFFEE SPECIAL?

Most do not appreciate the diverse historical journey that coffee has travelled over the

centuries when they purchase a ‘latte’ made with coffee from the estimated 131, 3 million

bags of coffee beans produced 2011/12 (Johnson, 2012, p290). However coffee’s varied

history has little impact on why coffee remains a global phenomena most notably in Europe,

the United States of America and Japan. (Johnson, 2012) In her book ‘God in a Cup’

Weissman (2008) makes an attempt to describe the appreciation of ‘good’ coffee and what

makes it special. She talks about its flavours engaging with the senses of the drinker; and

how industry specialists have to train their sensitivity to perceive unique aromas, flavours-

finesse! (2008, p35) Throughout Weissman’s (2008) analogy she uses words to describe

coffee like: inspiring curiosity, velvety- foam, magical. ‘Panamanian coffee: ginger,

blackberry, ripe mango, citrus blossom and exotic bergamot...God in a cup’. (Weissman,

2008, p35) Weissman outlines that different countries, regions and climates produce

collective flavours that eventually create a moment at which acidity and flavour fuse uniquely

to reflect an identity. Clearly the delight of coffee is subjective and holds a different value

and quality to different people; nevertheless few would argue that the strength of the

speciality coffee chain Starback since the mid 1990’s has massively impacted modern

consumer patterns wholesale. ‘Starbucks had become synonymous with fine coffee, hip

hangouts, and upscale image’. (Pendergrast 2001, p311) The speciality coffee industry has

moved on since the 1990’s (now) large chains are increasing becoming less associated with

‘speciality’ coffee as a marked increase in independent coffee shops and micro roasters has

taken off since the early 2000’s. These provide more choice and exclusive blends. Research

conducted by Allegra Strategies in 2010 estimated the UK coffee industry to have generated

£5 billion of revenue in the same year. Allegra’s Managing Director was quoted as saying

that he had never seen such exciting developments in the UK Coffee Sector; he further

predicted that despite an economic downturn this sector is expected to grow over the next 3-5

years. (World Coffee News, 2012) Whether it is the infusion of caffeine, its unique blends-

taste, marketing, the social setting, traditional cultural practices or a quest for finesse- coffee

in the 21st Century holds something different for everyone that can afford to consume it.

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2.0 THEORETICAL OVERVIEW

A fundamental problem with agricultural production and global supply chains is that

farming constitutes only a small part of the process: assembly, processing, distribution and

marketing require more technology and investment. Coffee is relatively easy to grow with

low production costs; indeed much of Ethiopia’s coffee is grown wild on open land

(Weissman, 2008). According to Griffiths (2012) if farmers are paid high returns, then they

are more likely to increase production and or encourage others to revert to coffee farming;

thus excessive production brings the prices down again. ‘The International Coffee Agreement

tried to control production to artificially increase prices with limited success, but this was

just an inefficient alternative to aid.’ (Griffiths 2012) Selling speciality coffee for niche

markets has proven the most effective way for farmers to achieve better returns (Johnson,

2012); however this only constitutes a tiny share of the market. This study takes a pragmatic

approach to the notion of increasing remuneration for agricultural workers and coffee farmers

in the global south; while recognising that increased revenue in agriculture can encourage

new entrants to the market and over production (thus reducing the value of coffee further),

this is not considered a sufficient factor to either justify the disparity between north- south

remuneration, nor is it considered a necessary means of controlling production. Griffiths

(2012) along with Daviron (2005), Woodman (2011) and many others suggest that there is

significant capacity within the global coffee industry for producers to acquire reasonable

remuneration through efficiencies and ethical consumerism. This will be covered later on in

the study. The next section will seek to outline why it is important to objectify fundamental

systems and underlying processes that are politically organised- that exist to prop up a glutted

status quo, as a posed to arbitrary arrangements. Therefore it will begin with where these

issues fit within contemporary development discourse and document key fundamentals to

provide a backdrop for further analysis in the literature review and case studies thereafter.

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2.1 SUSTAINABLE DEVELOPMENT AS A TENOR

The need for a general concept of ‘sustainability’ to be included in this analysis of

development models is arguably highly important if one subscribes to the view that post

industrialisation, along with prevailing global capitalism has produced a situation whereby

rich countries through consumption may have reached their upper ceiling on growth.

(Wilkinson, 2010) By contrast adverse environmental impacts, depleted natural resources

and issues surrounding global warming reinforce arguments for sustainable practices within

farming and more widely across the board; particularly given that a multitude of other

industries that are connected to the global coffee industry. This forms a fundamental basis

for the direction of this study. Elliot (1994) documents important shifts in ‘development

thinking’ through the advancement of development studies as a discipline since the 1950’s.

She outlines the 1960’s as a United Nations Development Decade in which it was largely

thought that the developing south would diverge with the north through applied economic

growth, modern science and technical knowledge. Followed in the 1960’s by prominent neo-

classical models from authors such as Hirschmann (1958) and Rostow (1960) with a linear

perspective of the stages in which a society needed to go through in order to become

‘developed’ by northern standards; namely: traditional (static)- increase

production/agriculture- develop a manufacturing base- industrialise and then become

commercially viable (with high mass consumption). While early development focus may

have been on encouraging this type of societal changes, it did not take account of negative

impacts on both an environmental and social level. The conception of sustainable

development therefore is not fixed; arguably development thinking and the need for

sustainable approaches to climate preservation, natural resources extraction, consumption and

the like constitute a particular notion- arising out of a particular time and space. This paper

therefore sets itself up within a context of being produced in the United Kingdom (UK) at a

time when pertinent political and social debates surrounding ethics, mass consumption,

materialism, corporate greed, and food security prevail against a milieu of austerity and

financial crises.

In actual fact the book ‘The Spirit Level’ Wilkinson (2010) provides a descriptive account of

how in spite of developing countries having reached a pinnacle of technological and material

advancement, her extensive research findings suggest that many of these citizens have

become more disconnected from community, social and family life- with higher incidents of

anxiety, depression and personal dissatisfaction about life. Similarly ‘mass consumption’ has

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placed undue pressure on the world’s natural resources and continues to harmfully influence

manufacturing/agricultural farming (Blacksell, 2011). As a research paper produced within

and working from the UK (northern- developed country), it is essential to not conclude that

the documented low incomes of coffee farmers- means that they do not enjoy benefits that

cannot be quantified in purely economic terms. Elliot’s (1994) analogy of the progression in

the international development agenda suggests that during the 1970’s ‘development’ began to

take heed of the ‘dependency school of thought’; this looked at how underdevelopment in the

south was directly linked with over development in the north; the international capitalist

system; unequal exchange, processes and international barriers. While development in the

1980’s (third wave) Elliot (p12: 1994) outlines encompassed more diverse views in

development thinking that sought to improve income levels in targeted populations through

strategy, growth and equity redistribution. At this point, she notes that economic dimensions

are matched up alongside other social and well being indicators. I feel it is important to

document important shifts in development discourse so as to provide a backdrop- context for

a number of historical inferences documented in later sections.

2.2 TRADE SYSTEMS: MOVING THE GOAL POSTS

Although some southern coffee producer have to work under extremely difficult

conditions with limited income, Zoomer (2008) would argue through the livelihood approach

that working in a beautiful natural environment; not having to spend hours commuting to

work; working independently – with family and as a community in agriculture can constitute

important benefits in itself. According to Zoomer (2008) rural livelihoods are less concerned

or dependent on economic dimensions, rather well being is often reliant on one’s ability to

creatively engage with available resources for sustenance and economic betterment.

Notwithstanding Zoomer’s (2008) positive depiction of rural living; or that she has coined

‘southern rural farmers’ as a fulfilled, creative generic group- stark inequity within the global

agriculture industry does exist and can be viewed through political mechanisms. The next

section will look at these mechanisms as a fundamental justification to challenge existing

terms for southern coffee producers- particularly in the poorest regions such as Burundi,

Sierra Leone and Ethiopia.

Many southern coffee farmers are required to operate within a dense historical construct of

liberal export trade agreements that neither reflects their interests as producers; according to

Chang (2007) nor did open market systems (essentially free trade) generate or produce many

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of the wealthy developed economies that dominate world trade. Chang (2007, p47) suggests

that wealthy developed economies protected their primary agricultural industry from

international competition to allow it to absorb new technology and become more efficient.

Today developing countries are often required to export within a forum of free trade, rather

than being politically or fiscally encouraged to protect and develop their primary sectors

(particularly agriculture/exports). Both Chang (2010) and Griffiths (2012) suggest that no

practical conclusion can be drawn from an analysis of Free Trade verses Fair Trade, because

it is continually a case of one set of controls and interventions against another. According to

Chang (2010) an essential clash of values lies at the heart of this debate, for him ‘The debate

[Fair trade vs. Free trade] about fair trade is essentially about moral values and political

decisions, and not economics in the usual sense’. (Chang, 2010, p7) Griffiths (2004, p3)

documents that political pressure is largely placed on the governments in southern developing

countries to produce and trade commodities openly with limited or few barriers as safeguards

that maintain valuable returns; for example he notes that, post 1980’s institutions such as the

International Monetary Fund and the World Bank have been instrumental in purporting this

agenda. (Griffiths 2012). Coffee producers in this instance in some Third World Countries

are also subject to artificially high fixed national currency exchange rates set by a central

bank which stifle export revenue; market prices become distorted whereby exports become

uncompetitive and imported produce becomes cheaper. Additionally inflated currency can

also serve as an inefficient process by absorbing money in to the central bank’s coffers when

foreign currency is bought with dollars. (Griffiths, 2004, p29)

In the book the Undercover Economist, Tim Harford (2006) seemingly endorses Chang’s

point in so much as he questions why coffee is often more expensive in cities such as

London, New York, Washington and Tokyo. According to Harford (2006), it is not a simple

conclusion that rents are higher in such regions. While he accepts that rents are likely to be

higher- he outlines that this is a cause or ‘outcome’ of an intricate relationship between

‘scarcity and bargaining power’ rather than an arbitrary fact of life. Businesses or

landowners with products that are scarce (or protected by inbuilt mechanisms/systems) can

command higher prices (premiums). ‘When economists see the world, they see hidden social

patterns, patterns that become evident only when one focuses on the essential underlying

processes’. (Harford, 2006, p14) Better remuneration in the north is largely reliant on

political mechanism and controls that limit immigration; thus inflating/maintaining wage

premiums. According to Scotsman.com (2012) Oxfam have accused the European Union [an

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association of European Nations since 1993 for the purpose of achieving political and

economic integration] of crippling fair trade for developing countries by distorting markets in

favour of European produce. An example of which can be seen from the documented

subsidies to British farmers in 2008 of 3, 775 million euro; this is estimated to have amounted

to 12, 517 thousand euro per farm. In this respect it is reasonable to identify the underlying

system that perpetuates an imposition on many southern coffee producers within a

‘dependency theoretical approach’ namely: the prevailing capitalist structure underpinning

global trade and national governments policies are directly correlated with a disparity that in

some regions has brought about catastrophic consequences in terms of famine, food

insecurity, deforestation and widespread migration to cities and towns. (Griffiths, 2004) The

prevailing world trade system is one of many systems that can be operated. This study will

engage meaningfully within contemporary development discourse to identify better

alternatives on a micro level. The next section will critically evaluate contemporary themes

such as: sustainable agricultural practices and increased demand; as well as ethical

consumerism vs. commodity fetishism.

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3.0 LITERATURE REVIEW

There is a pyrethrum of documented material on trade, sustainability in agricultural

practices, ethical consumerism, and globalisation; therefore this literature review will narrow

its scope to explore distinctive contentious perspectives concerned mainly with modern

pressure to encourage wholesale farming processes to encompass profit and global population

growth; against equally powerful arguments for sustainable farming to preserve resources and

maintain traditional farming techniques (organic). Additionally this section will take a closer

look at ethical consumerism and ‘branding’ against typical capitalist definitions of

conventions and the obsession for commodities. Examples will be drawn from a selection of

industry and topic related: journals, articles and books.

3.1 SUSTAINABLE AGRICUTLURAL PRACTICES AND GLOBAL DEMAND

In the book Sustainable Agriculture and Food Security (2002), part written and

edited by Vandana Shiva it is suggested that sustainable agriculture should be based on using

natural resources such as land, water, plants and animals moderately. According to Shiva

(2002) communities should be encouraged to generate livelihoods and produce food in a

controlled way- that conserves natural resources. It is asserted that on a macro level- through

globalisation the world trade system in its current form conspires to undermine sustainable

agricultural farming practises because it often encourages exploitative farming methods that

are environmentally harmful to increase production for short term profits. Although Shiva’s

perspective in this book is not controversial or particularly novel, it is useful as an

introduction because it briefly summarises what sustainable agriculture should represent and

it highlights a contemporary view about a divergence between the role of agricultural farming

and global pressures on demand. (Keen, 2002) (Lewis, 2011)

In the first chapter which is written by Shiva (2002, p13) she states that centralised external

trade liberalisation and globalisation policies have moved further away from the control and

needs of national governments (on communities needs) to transnational corporations

(TNC’s), and that influential international organisations such as the World Bank (WB) and

International Monetary Fund (IMF) underpin a system that serves the interests of global

commerce rather than prioritising ecological- sustainable processes and food security in

underdeveloped regions. Shiva’s chapter (2002) is relevant to this study because it provides a

valuable platform from which to assess interplay between international systems, national

policies and the implication for these at a local level; as well as exploring the potential of

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development through agriculture within the theme of this paper that looks at alternative

models.

In her work Shiva (2002) provides a broad example in India of how the WB sought to

effectively privatise farming by influencing policy through its controversial structural

adjustment programmes (SAP’s):by de-regularising domestic manufacturing, removing or

significantly reducing subsidies and deregulating fertiliser imports. Similarly in her earlier

book called: There Is an Alternative (2001, p57) Shiva describes how [also in India] the

World Trade Organisation (WTO) increased intellectual trade rights which produced a total

monopoly within the seed sector by advocating a reduction in subsidies and forcing the entry

of multinational seed corporations. ‘Native seeds have been replaced by new hybrid varieties

which cannot be saved and need to be purchased every year at a high cost’. (Shiva, 2001,

p57) According to Shiva (2002) a central component of external trade liberalisation policies

is that they embody an underlying element of the theory of comparative advantage which

(broadly speaking) promotes the idea that countries should be encouraged to cultivate what

they can produce most efficiently (profitably) to enable them to exploit this advantage within

world trade systems; it is widely thought that this strategy best serves wealthy dominant

developed countries (Oxfam, 2002) (Griffiths, 2005). National governments can then import

the things that they cannot produce efficiently from foreign exchange obtained through

exports. Shiva (2002) argues that an inherent problem within external liberalisation is that-

by reducing subsidies, promoting greater competition and through increased demand from

transnational corporations a greater strain is placed on the environment/natural resources via

aggressive production and increased transportation footprints; she asserts that this is not often

noted as a consequence in common political or media discourses.

It can be argued that Shiva’s background as an internationally recognised, native- Indian

academic, along with her committed emphasis on specific examples within India

communities that she is familiar with- serves to both provide a global platform for people that

wouldn’t otherwise have featured; as well as provide wider academic discourse with a

particular insight from a position of ethnic cultural understanding; plus from community level

engagement; she is also renowned for providing a voice for gender inequality in ecology.

(Saner, 2011) For this reason, according to Saner (2011) her studies and campaigning has

sought to mitigate destructive development within India on a global stage; what is more,

while India may be a particular case in point (thus restricted illustration) - its vast population

[estimated at 1.2246 billion in 2010; World Bank data (2012)] and global development needs

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place it in a potentially strategic position to produce wholesale success within a development

context with the right interventions. Consequently her work to highlight and contest what

she considers to be an internationally endorsed destruction of responsible (traditional)

agricultural farming practices in the South is hugely significant in the global development

agenda as a point of reference for both academia and policy.

In addition Shiva (2002) asserts that the prevailing world trade system purports a ‘false logic

of competitiveness’ because intricate international mechanisms produce ‘fixed international

prices’ which cannot be changed on a micro level given that food prices are a function of

import- export supply and demand system. An external example that would support this

aspect of Shiva’s analysis is widely documented and demonstrated in a 2007 article about

increased suicide rates of Ghanaian tomato farmers- published by: Interchurch

Organisation for Development Cooperation (ICCO) . The article documents post 1980s-

1990’s IMF and WB policy conditions persuaded the Ghanaian government to privatise and

deregulate tomato canning factories while simultaneously relaxing trade restrictions with

devastating consequences for the Ghanaian tomato industry. According to the article (2007)

the two main tomato canning factories closed down and the market was flooded with

imported tomatoes heavily subsidized by the European Union. Since 1993 Ghana’s process

tomato preserves have increased from 3,713 tonnes to 27, 015 tonnes [in 2003]. Ghanaian

tomato producers simply cannot compete with EU producers that receive an estimated 300

million euro (directly) and 7 million euro (indirectly) in subsidies. (ICCO, 2007)

Consequently it is suggested that the negative impact of international policy was linked to an

increase in (farmers) suicide rates. The merits of the research carried out on the suicide rates

of Ghanaian farmers or indeed the impact of SAP’s or other trade related policies is not the

focus of this paper, rather it seeks to identify that an interchange between global, nation and

local level relationships is arguably pertinent when considering (at a local level) the

livelihoods of agricultural producers. Neither can be assessed within complete isolation and

Shiva’s book (2002) makes that fundamental point about the interconnected linkages in

respect to adverse economic and environmental outcomes for local people in the South.

Similarly by looking at small Indian communities Shiva (2002) expands her perspective to

incorporate how increasing global pressures are destroying agricultural farming for profit

maximisation as will be explored in her example of agricultural seed policy in the next

paragraph.

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Emine Saner suggests in her article from the Top 100 women: activists and campaigners

series in the Guardian newspaper, 2011: that Vandana Shiva is an exemplary

‘environmental activist’ on biodiversity and agribusiness because she goes beyond the main

arguments for sustainable farming to document latent issues. She quotes an example from

Shiva work of how large scale introduction of homogenous genetically engineered seeds

require larger quantities of chemical fertilisers, pesticides and water during cultivation. In

this context she acknowledges that it is increasingly not the farmers- but powerful global

companies that endeavour to create a situation of dependency and exploitation with (Shiva

argues, 2002) an inevitable consequence of greater waste, consumption and natural resource

depletion. According to Shiva (2011) they [TNC’s] ‘hold the future power of food security’.

Shiva’s criticism of what she documents as corporate control, greed- backed by international

organisations has considerable validity (if taken in the context of the examples above);

however she relies heavily on an underlying ethos of promoting organic farming. (Saners,

2011) – which has the following: a limited demand on market exchange; requires more

intensive farming for the same or even less crop product; is generally more expensive that

conventionally produced crops. (Griffiths, 2012) As a result logical questions as to whether

Shiva’s central focus- fundamental goal to implement and promote sustainable (largely

organic) agricultural practices worldwide is inherently flawed from a practical basis. This

sits within the theme of this baseline study to examine workable commodity supply chain

models and systems in relation to the imported coffee industry; and how these might present

wider opportunities within the coffee development sector and ethical consumerism industry.

Saner’s article (2011) further suggests that critics of Shiva have called her naive because

organic farming cannot support the world’s food needs. (Sanders, 2011) In my much the

same way as coffee produced under fair-trade certification cannot satisfy the global demand

for coffee. (Griffiths 2012) Indeed in the book The Economist’s Tale, Peter Giffiths (2004)

described a situation in Sierra Leone [coco crop] whereby a removal of subsidy caused a

collapse in fertiliser imports, this in turn led to reduced crops produced, abandoned and

increased crop diseases. ‘If you use lots of fertilizer, you can feed the population from a small

area, but once you stop...you have to cultivate more land to get the same amount of crop’.

(Griffiths, p121, 2004) Griffiths further documented in-country fertilizer projects backed by

the Food and Agricultural Organisation backed by the United Nation in developing countries

for the purpose of improving food security. While Shiva can be described as a ‘seasoned’

environmental campaigner- having founded an ecology research foundation in 1982 (Sanders,

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2011), it is considered that her macro analysis of fertilizer and seed implementation does not

incorporate practical issues of how difficult (in real terms) it is to produce enough agricultural

crops to sustain the daily consumption either nationally or in view of the world’s estimated 7

billion inhabitants. (World Bank data, 2012)

Shiva (2001 and 2002) suggests that sustainability and social justice can and should be

introduced through internal liberalisation policies that seek to discourage an increasing use of

external inputs (chemical fertilisers and pesticides) so as to transfer to largely organic-

sustainable methods; free farmers from the demands of capital intensive farming (and debt)

and make food security a human right. According to Saner (2011) despite her critics,

Shiva’s achievement which includes publishing more than 24 books on biodiversity, ecology,

eco-feminism- indigenous Indian communities, award winning Vandana Shiva has made a

significant impact on the international forum of globalization.

Saner’s article (2011) is overwhelmingly tipped in favour of broadcasting Shiva’s notable

achievements (in line with the published series), she attempts to infuse a sense of balance by

remarking on a general criticism, but she does not state more than that; nor does she present

any statistics or impact data in support of Shiva’s extensive record as a campaigner. Saner’s

article was published by the Guardian newspaper which refers to itself on the official website

as mainstream: left of British political opinion. In October 2011 its daily circulation topped

230,541 copies which put it behind other popular papers such as The Daily Telegraph and the

Times; the Guardian’s online viewership stands at the second most popular paper- which

suggests that Saner’s (2011) article was (and possibly continues to be) widely read. The fact

that it provides an overview of Shiva’s accomplishments rather than a detailed account of her

record as a campaigner does not limit its usefulness; understanding her background and its

significance for a reputable British newspaper suggests that her involvement in development

is being echoed in wider discourses via the media.

Even though Shiva’s aspirations in her book (2002) may highlight important examples of

inequality, corporate exploitation and concerns about the excessive depletion of natural

resources, it does not sufficiently address how the world will deal with a doubling in the

global demand for food in the next 50 or so years, or what challenges and implications will

this have for sustainable agriculture and how will our land and aquatic ecosystems fair in the

immediate future. In the absence of definitive or even credible recommendations to some or

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all of these questions- sustainable, organic farming practices and food security as a human

right will continue to remain important, but marginal.

3.2 ETHICAL CONSUMERISM, BRANDING AND COMMODITY FETISHISM

In the Brill journal paper: Fair-Trade Coffee and Commodity Fetishismism: The

Limits of Market-Driven Social Justice (2007), Gavin Fridell asserts that fair trade (in a

broad sense) seeks to reveal the social and environmental conditions under which products

are produced; thereby establishing (and upholding) non-economic values of cooperation and

solidarity for consumers. For him the rapid growth of ethical businesses represents non-

government subsidies that provide much needed social capital for farmers as an alternative to

strict neoliberal policies. According to Fridell (2007) commodities (or products) are

routinely purchased without any connection being made to the people or places from which

there were produced. Fridell (2007) describes fair trade as a model that begins to contest a

Marxist analogy of the ‘fetishism of commodities’ because so-called educated consumers

will be empowered to collectively engage by altering their patterns of consumption to support

socially and environmentally responsible initiatives, as a posed to only participating in the

pure accumulation of profits, competition and accumulation (2007, p84). Fridell’s (2007)

introduction effectively shifts the focus from agriculture, production and international

systems to explore fair trade consumerism in ‘Northern’ markets as a means of understanding

what he would argue as historical shifts from ‘abstract’ commodities to ‘ethically traded

products’ have in some sense established a basis for positive consumer collectivism in the

North.

According to Fridell (2007), within a broad Marxist perspective: capitalism facilitates a

mechanical process of selling one’s labour or goods as ‘abstract’ commodities in a market

exchange to turn a profit and purchase what is needed. ‘This process not only stems from

capitalist social relations but helps to preserve their legitimacy by obscuring the social

exploitation and ecologically conditions of production...’ (Fridell, p84, 2007) The products in

conventional purchases have a generic life of their own (i.e sugar or coffee) with the

subjective needs of the consumer the only determinant for market choices; however fair trade

consumers seek to change this pattern in accordance with a shared value system in order to

produce better conditions for Southern producers. In spite of this Fridell (2007) suggests that

while ethical consumerism is always limited to the networks of the market driven approach

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(determined by supply and demand) – an inherent symbolism in the concept of ‘ethics’ has in

itself become the ‘commodity’ to be bought and sold in Northern Markets. That is to say, he

notes a significant shift in consumer choices that adds an additional dimension to the sale of a

product, namely the ‘ethical’ dimension is both symbolic and commands an ascribed value in

its own right. In this respect he acknowledges that the supposed solidarity against injustice is

relative because the capitalist global market (especially TNC’s) have also absorbed the ethics

theme by adopting fair-trade schemes into their global brands.

Fridell’s overall analysis of ethical consumerism is largely optimistic in so much as it makes

a clear, consistent connection between ethical consumerism and political activism for social

justice for instance producing better terms for Southern producers. As with the vast majority

of literature available- Fridell has not presented any evidence in the form of documentary

evidence/ data on the results of ethical trade from market exchange; moreover other variables

such as inconsistent consumption patterns and the expansion of TNC’s into the industry-

render his ‘social solidarity’ driver for ethical consumption secondary; not least because

according to Woodman (2011) few consumers actually engage beyond the point of purchase

at the checkouts. ‘Recognition is one thing, but getting people to actually buy into it is

another challenge’. (Woodman, 2011, p40) Consequently the industry for ethical

consumption is by no means a ‘done deal’. If it were, the United States of America would

not see fit to spend trillions of dollars yearly on advertising ethical products to rigorously

compete with other brands. (Woodman, 2011, p40) Similarly Fridell did not expand on or

substantiate his early insinuation that fair trade stands in contrast to strict neoliberal polices,

particularly as he contends that ethical trading has both been adopted by mainstream channels

(largely through TNC’s) and indeed that ‘ethics’ has become its own conceptual brand. His

paper does not appear to make clear differentiations on these points.

According to the Trent University website (2012) Gavin Fridell works as an assistant

professor in the politics department at Trent University in Canada, the topic of historical

materialism through Marxism (in this paper 2007) may resonate with his previous MA

studies in World History. It is cited that his interest is to explore the political and ethical side

of fair trade systems, in particular through coffee- which fits within this study; however

rather than other coffee-specific pieces of his work, I have chosen this paper to set in place a

broader context than just the coffee industry. As we note from the introduction, theoretical

overview and literature review there is a sizable disconnect between the coffee producers in

the South and consumers in the North. Fridell’s selection of topics begin to set in place a

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framework from which an analysis of ethical trade and its limits to deliver through

consumerism in the North can be investigated.

Fridell’s paper (2007) is also about the limits of market driven social justice; in this context

he puts forward the argument that the potential of making money through a premium on

‘ethics’ is restricted- through the analysis of work undertaken by Kaomi Klein in the book:

No Logo (2010). Fridell (2007) refers to an example of Nike trainers; through branding they

routinely cost between $100-$180- even if they only cost $5 to produce. This is somehow

seen as acceptable on conventional markets because products appear as abstract. According

to both Fridell (2007) and Klein (2010) ethical branding does not hold the same potential to

hike up prices/profits not least because it isn’t justifiable to the public on a pragmatic level;

also they note that it ‘ethic’s generally appeal to a minuscule number of committed political

consumers. Despite the fact that there is still some potential growth in the industry- its

marketing has been inextricably linked with infusing guilt into consumer choice; diverse

branding is confusing; meaning is reduced through corporate membership (expansion of

TNC’s in the industry) and limited transparency in how money is spent and the impact of the

initiatives remains ethical trades biggest obstacle to validate. (Fridell, 2007) (Griffiths, 2010)

In the section above Fridell has put forward a variety of valid factors as to the limits of ethical

consumerism that are widely documented in a number of other books (Daviron, 2005)

(Woodman, 2011); however aside from suggesting in his conclusion that the only way to

dispel with unfair social relations (in production and labour) is to combat the system that

gives way to them- it is considered that he has failed to advance his debate to recommend

possible solutions to address inherent limitations in the sector. In this respect as cited in the

title: ‘Historical Materialism’ this paper is more rhetorical than illustrative of how the sector

can move forwards.

In my opinion Fridell’s study (2007) is densely written- much like other philosophical works

on Karl Marx and early capitalism. His reference list varies from traditional historical

sources like ‘Capital: The Marx-Engels reader’ (1978) and Uncommon Grounds (1999) to

‘Food expenditure in Canada’ (2001). Although his range of reference sources are a

collection of books, journals and statistics reports- (which can be a marker that his paper

contains grounded theory and verifiable data) the pitch at which it is set is both dense and

generic; for instance he routinely refers to broad concepts like ‘social justice, ethics-

produced consumer solidarity; political consumerism’ as though these are universal stand

alone concepts. Ethics as a concept can be interchange according to the context i.e. Nike

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(brand) is reputed to produce and source its goods in countries with low wages and poor

labour regulations (through ‘ethical policies’) - dramatically reforming standards could push

for instance children into other forms of child labour and prostitution. (Keegan, 2003, p122)

That is not a justification to keep child labour or poor working conditions, rather Fridell

failed to identify that many of his broad terms embody dynamic meanings. Furthermore

Fridell’s use of language appears to implicitly categorise things or terms into good vs. bad.

Ethical consumerism is good; it is linked with social justice, and political activism

‘North/South solidarity promoted by fair trade are indeed positive and represent a challenge

to the principles of market exchange under global capitalism’. (Fridell, 2007, p99) Whereas

he uses terminology related to conventional commodity markets like ‘mental colonialism,

thought traps, fetishism of commodities’. (Fridell, 2007, p83) Ultimately Fridell’s paper as a

historical comparison helps to map how modern consumerism has evolved as an ‘abstract’

entity from a particular lens; therefore his work ultimately makes a cogent point, namely:

ethical trade constitutes an important symbolic shift, in spite of this it is inherently restricted

in how far it can evolve given that it too has been absorbed into the market exchange as the

commodity.

By analysing sustainable development as a contemporary school of thought and how specific

(counterproductive) trade systems and international policies can produce skewed global

markets in the theoretical overview section; Shiva’s (2002) perspective on agricultural

framing/internationally backed corporate pressure and then Fridell’s (2007) study on ethical

parameters in capitalist conventions, this paper develops a specific narrative on viewing

agricultural development as a fluid, highly complex paradigm that consists of interrelated-

connected systems that have been historically structured in favour of powerful corporate

bodies (TNC’s); often controlled through national governments in powerful influential

developed countries (USA for example); they appear to be underpinned by strong

international policy pushed out through international organisations such as the International

Monetary Fund and the World Bank. This narrative does not seek to exonerate national

governments in developing countries as secondary actors; it simply sets out a broad

framework upon which it is possible to explore how in preceding sections selected Company

models and broader theoretical analysis can be understood in view of a high functioning,

regulated world trade system with increasingly complex modes of consumerism. The next

section will outline the research methods that have been employed to investigate whether

viable alternative prospects exist for southern coffee producers; through a supply chain

20

analysis, interviews, case study reviews and a field visit to a micro roasting company in

London.

4.0 RESEARCH METHODS

Aims and Objectives

The purpose of this study is to make a valuable fresh contribution to current discourse on

ethical trade networks and consumerism.

This study aims to:-

1. Explore the interplay between trade systems and international/national policies (with

examples) that underpin inequity in agricultural production economic outcomes for

southern coffee producers: through a supply chain analysis of the mainstream global

coffee supply chain and related economic/development discourse.

2. Classify important themes that bolster inequitable relations within the north- south

divide that include: a coffee paradox, corruption, corporate avarice, cultural

materialism verses ethical trade perspectives.

3. Examine case study examples of companies working within alternative trade

networks and whether efficiencies in the value supply chain can produce better

economic outcomes for poor coffee producers in the global south.

4. Identify whether any lessons can be learnt to improve or expand on other

development initiatives in the sector by comparing/contrasting the case studies

reviews with broader development discourse and information obtained through

primary research interviews.

Significance: Why is this interesting now?

The Fair Trade Organisation first infiltrated the coffee industry in 1988 with an undertaking

to establish better terms of trade for mainly southern agricultural farmers, however its overall

market share remains quite modest with the US coffee market alone dwarfs its annual sales;

taken as a whole its total market share makes up less than 1% of global coffee sales.

(Daviron, 2005) Few alternatives exist (perhaps with the exception of Rainforest Alliance) to

advance the ethical trade debate beyond the now stagnant ‘certification movements’ which

costs southern producers much needed revenue and other resources to meet compliance

criteria.

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Similarly with the rise of transnational corporations (in particular) and worldwide travel-

never has there been such a time of global interdependency (certainly from a position of

widespread access/demand). With the continued depletion of natural resources, adverse

environmental impacts, continued poverty (mainly in the South – although not exclusively)

and the myriad of problems related to it-negative impacts are reverberated around the globe.

The prevailing world trade system is one of many systems that can be operated. Global

citizens should continue to engage meaningfully to prise out better alternatives. (Rigged

Rules and double standards, 2002)

Definition of Generic Terms

Southern Countries/ Farmers Economically developed societies (Europe, North America and Australia amongst others).

Northern Countries/ Companies Emerging /developing economies (Africa, India, Brazil and Mexico amongst others)

Protectionism This happens when imports are restricted or highly taxed to offer an advantage to domestic markets

Free Trade In theory no restrictions are placed on trade.

Fair Trade (alternative trade)

Fairtrade Labelling Organisation

Selling products and ensuring that producers receive higher returns than on conventional markets

Movement set up to provide more profits from trade to Southern Producers- through a minimum price and premium scheme.

Balanced Trade A concept that stipulates that countries should import only as much as they export better regulate capital cash flows.

Comparative advantage Often linked to free trade theory: countries that can produce things most efficiently- should exploit the advantage of cheap production to enable them to earn enough to buy (import) what they require to function.

Ethical Trade Trade with a component integrated to promote positively beneficial social and environmental practices.

Transnational corporations/companies [globalisation]

A firm that owns or controls production facilities in more than one country through direct foreign investment.

Neo-liberalism Liberal policies in favour of free market capitalism

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4.1 METHODOLOGY

Collecting Primary Data

While the coffee industry spanning more than a century (Pendergrast, 2001) is a well

researched topic, this study will focus in-depth on understanding how macro and

macroeconomic systems of trade work within the international agricultural coffee industry:

through a detailed interview with an Economist, Author and Development Consultant in the

field and a field visit (observational) and short interview with a micro coffee roasting

organisation in the UK.

The decision to allocate time as resources to conducting primary research in these areas is to

try to establish –experience lead information that is not routinely captured in wider discourse,

and to provide an opportunity to focus interactively on key issues that will provide a greater

insight (context) into the industry through people that understand how it works internally. It

can therefore be said that this study seeks to obtain qualitative primary data through the

primary research methods: interviewing and field observation.

Assessing ‘micro systems’ does not itself require primary data collection, indeed trade,

economic and many other disciplines outline systems successfully. In this case however,

both understanding ‘relationships’, value systems and how they might impact

consumerism/coffee producers in the south- requires a more ‘people focused’ method of data

collection, and testing the observation/theories through conducting focused interviews; this

should provide a robust depiction of the systems assessed.

Why a Case Study approach?

This study will also adopt a case study approach to explore company models by looking the

websites of three companies working within fair-trade or alternative trade networks.

Prescribed criteria in the form of a grid will be used to evaluate the information presented

about their company models. This will be followed by a broader review of where their model

fits within the international supply chain; its merits and whether the structure of the models

can provide any important lessons within the development sector.

According to Densombe (2008, p35) advantages of the case study approach include:

Enabling the researcher to focus on relationships and processes.

Conducting the research in a ‘natural setting’. (although websites will be used)

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Utilising multiple sources and multiple methods simultaneously.

Whereas disadvantages to the case study approach include:

Limited breadth or range included in the research

Little emphasis is placed on ‘outcomes and end products (‘soft data’

produced)

Having isolated factors may impact on wider representation (credibility)

A case study approach is considered to be the most suitable research method for a specific

part of the study because focusing on a narrow sample will enable the research to capture and

document complexities and dynamics that may exist within an existing structure. It is

considered that producing quantitative survey’s, or reviewing secondary reports would not

provide the required depth to identify a ‘micro system’ in its entirety. Similarly through

observation, interviews and by evaluating primary/secondary data sources- this research will

describe, explore, compare and contrast stakeholder relationships, processes, an supply chain

analysis of values and where there are openings for southern coffee producers to establish

improved economic outcomes. The depth of the potential data will constitute a viable

baseline study that presents a unique opportunity to conduct further research in this setting.

Also the main participant (Griffiths’) contribution is considered constructive because he has

decades of experience in economics and agriculture.

Interviewing and Observation

The advantage to using unstructured or semi structured interviews for this study is that

relevant (not merely generic) information can be obtained, participants are free to express

different views about the same topic, and further clarity can be sought at a later date (if

necessary).

The disadvantage to placing central focus on interviewing is that data collect is subject to

interpretation which can reduce the reliability of the data. This study plans to mitigate this by

adopting a triangular approach in which several research methods will be used; namely

primary data will be collected and compared with secondary data (coffee industry: reports,

company archives, annual reports)- in addition to literary data from books, journals, the

internet. (Currie, 2005, p89)

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Participants (interviewees) in the study include:

1. A prominent Economist, Author and Ethical Trade Activist: Peter Griffiths has agreed

to participate in the study broadly on aid, trade systems and his model of consumer

transparency.

2. A micro coffee roasting company owner/buyer Anetter Moldvaer from Square Mile

Coffee Company in Hackney, London has agreed to allow me to spend time at the

their roasting facility and to an informal interview.

Ethics

I will ensure that all participants:-

Are fully conversant with the aims and objectives of the study and provide

written consent by providing a letter in advance.

Volunteer freely- by not pressurising them through repeated attempts to

communicate with them if they do not reply or do not wish to continue.

Are aware that their names will be cited unless they wish to have it omitted

from the paper.

Aware that I will adhere to all company policies and guidelines (including

with regards to branding, copyrights, recording and taking photographs-

during observation).

A copy of the study will be made available to all participants/companies for

them to retain.

While it is considered that there is little risk of this study producing any harm

to any individual or organisation- a risk assessment will be completed to

assess possible outcomes and ways to avoid/ minimise risk.

I will maintain an open door policy so that participants can approach me for

clarity or if they have any concerns to be addressed.

I will maintain ownership and take full responsibility for the project. I will

work reliably, with neutrality (as much as possible) and integrity by keeping

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appointments, responding in person (not through a third party/leaving

messages) and by not discussing other case studies.

Limitations

The remit of this study will focus on some primary data produced from participants in

the UK along with secondary data sources, it will not therefore collect participatory

contributions from either the Southern coffee producers or indeed the organisations

reviewed in the case study models (only official website information will be used).

This renders the data collected representative of particular viewpoints and

perspectives that may or may not stand up when compared with impact data or

agricultural coffee farmers accounts. This is not considered to significantly alter the

validity of the information presented as a balanced narrative including integrating

dependency theory and livelihoods approach perspectives have been used to situate

the study as both a critical and discursive paper.

An extended study to capture more of the global supply chain from farm gate to retail

outlets would be beneficial for future studies.

This constitutes a base-line study. Time restrictions along with financial and other

limitations require a narrow basis to be investigated. Expanding emphasis could

include impacts from areas such as branding, marketing, national development policy,

internal industry corruption and the role of international institutions on the global

coffee chain/modes and models. Priority should be given to obtaining impact data on

the case studies used.

Additionally an important area to explore and contrast further would be national

coffee industries and their appropriateness for ethical models such as The Earth

Friendly Coffee Company to be introduced to assist small-scale communities for

instance in Burundi, Ethiopia and Sierra Leone.

Scope

This study has been narrowed down to capture data from participants in the UK for ease of

access; similarly it can be argued that there is value in documenting development models

carried out through British companies. This too could provide a basis for further study as to

whether a British (or American etc) company introducing ethical models to the country’s

26

coffee sector constitutes a ‘British’ response to the development issue; decoding businesses

from national identities; as with the Fairtrade Labelling Organisation would be an interesting

area to expand on.

5.0 ETHICAL TRADE IN THE GLOBAL COFFEE INDUSTRY

This section will explore innovation in the ethical trade coffee industry through case

study models that demonstrate how significant value can be added and retained by coffee

producers that engage with the system differently to alter how coffee production,

consumption and sharing can be reformed, to infuse ethics, symbolic meaning and monetary

value. By conducting a supply and value chain analysis of the coffee industry it is possible to

identify a mainstream process; input and output relationships; economic tradeoffs and capture

where value is added in order to provide a context; in which to consider where each case

study is situated in the supply chain and how their model possibly encapsulates alternative

trade relations. This has significant implication for growth expansion on a micro level;

however through examining a detailed interview from an Economist/Development Consultant

and pertinent theoretical perspectives this section will also appraise whether there is space for

southern coffee producers to benefit from macro reforms to prevailing systems to produce

viable systematic changes that have the potential to improve the livelihoods of millions of

coffee producers.

5.1 COFFEE: CHERRIES FROM TREES TO CUPS

A typical coffee tree takes 3-4 years to bear its first fruits; after which it can produce

yearly yields for up to 30-years. The laborious process of growing and cultivating coffee trees

often starts with a farmer planting and nursing seeds under a shade canopy, pruning

fertilizing, spraying for pests, irrigating, handpicking individual ripened berries and removing

the seed from the centre of the fruit. The seeds are then fermented and washed to dissolve a

coating (called mucilage) from the exterior of the bean. Civets in some parts of Asia (in

particular) are associated with expediting this stage by eating the coffee cherries then

excreting dried beans in their dung. Coffee beans processed like this are popularly referred to

in Vietnam as ‘Kopi Luwak’ and as ‘Kape Alamid’ in the Philippines (Daviron, 2005) - they

attract a premium price of around $297 per pound for consumers as a luxury item. (Specialist

Coffee and Tea, 2012)

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Coffee beans are generally extremely sensitive- therefore great care needs to be taken

throughout production to ensure that everything (soaking, roasting, bagging) is accurately

timed to preserve quality and flavour; after washing, the cherry is left to dry in the sun. After

the beans have sufficiently dried out they are transported to a place where they are milled to

remove the outer skin for the green bean. Following this, either by hand or machine the

beans are sorted by size and quality- before being bagged up and stored in a dry place. Often

the sacks of green beans are then transported to the port for export where they will be shipped

to developed ‘Northern’ countries such as the United States, Japan and Europe. (Weissman,

2008, p16) (Pendergrast, 2001, p5) The diagram below shows the main stages in the coffee

supply chain.

Figure 1: The mainstream coffee chain from producer to consumer (Slob, 2006, p 23)

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5.2 COFFEE CRISIS / COFFEE BOOM: A PARADOX

According to Daviron et al (2005, p204) a coffee crisis in producing countries became

apparent in the late 1990s – early 2000s which has resulted in southern coffee producers

facing the lowest (actual) prices in almost a century. He characterises a ‘coffee paradox’ in

which coffee producers appear to receive diminishing returns (when viewed over time) in

their products while consuming countries have an effective boom in the industry with

documented increases in the value of coffee based products. Daviron notes specifically that

increased revenue in consumer countries is not necessarily linked with increased

consumption per capita- rather consumers seem to pay more for symbolic and service related

attributes relating to branding, consumption ambience and packaging. (2005, p204)

Daviron (2005) asserts that a useful way of assessing shifts in value distribution is to

historically analyse income retention in consumer and producer countries. He refers to a

study called: ‘Where does your coffee dollar go?’: The division of income and surplus along

the coffee commodity chain (1997) from a journal entitled Studies in Comparative

International Development that states that in the 1970s an average of 20% of the total income

generated by roast and sales was retained by southern coffee producers. This was also

calculated to be the same in 1980/1 and 1988/9; with around 55% retained in consumer

countries. [Remaining 25% not referred to/ perhaps this may in part have been absorbed in

inefficiencies, market boards and the like (Griffiths, 2012)] However according to Daviron

(2005) in 1989 the collapse of the International Coffee Agreement (ICA) dramatically

changed the situation for coffee producers; between 1989/90 and 1994/5 the proportion of

income gained by the producers was shown as 13% while the proportion retained in

consumer countries increased to 78%. [Talbot’s (1997) calculations based on weighted

average prices for all International Coffee Organisation (ICO) countries at various nodes of

the chain] ‘This represents a substantial transfer of resources from producing to consumer

countries, irrespective of price levels’. (Daviron et al, 2005, p205) Daviron (2005) suggest

that another way to analyse shifts in the distribution of value in the coffee supply chain is to

compare and contrast the ratio between the retail prices for roasted coffee and international

green bean coffee prices. Daviron (2005) quotes the International Coffee Organisation’s

database as citing a 50% reduction in green bean coffee prices from December 1999- 2003;

while average retail prices dropped in the USA from December 1999- 2003 by 15%.

Similarly Bart Slob (2006) in his study entitled: A fair share for small holders suggests that

farmers that did no processing to their coffee (i.e. simply sold coffee cherries/ or crops by the

29

tree) got just 6.5% of the final retail value. (2006, p25) He presents the following table from

the value chain research undertaken by Karen St Jean-Kufuor in 2002 for Oxfam:

Mainstream coffee PercentageMainstream Coffee Percentage

Retail Price € 1.57 100 %VAT (6% in the Netherlands) € 0.09 5,73 %Margin distribution, costs of roasting, storage, (sea-) transport, financing, margin roaster and importer

€ 1.20 76.43 %

FOB price € 0.28 17.84 %Structure purchasing coffee (FOB)Export taxes and other fees € 0.01 0.64 %Costs of processing, financing, transport, bags and other trading expenditures, including trade margin

€ 0.17 10.83 %

(Gross) income producer organisation €0.10 6.37 %[Farmers that produce for niche markets will obtain higher percentages than small holders that produce commodity coffee.] (Slob, 2006: p25)

The coffee paradox- as coined by Daviron (2005) exists in part because the farmers are

selling a raw product in its material form. Consumer countries increase its value by adding

symbolic meaning and in-person quality attributes. Harford in his book the Under Cover

Economist (2006) expands on this by looking at the coffee bar industry model in terms of rent

premiums, land policy and how staff costs, milk, branding, electricity and the like all come to

bear on how coffee is priced in consumer countries. In spite of this as we note, the coffee

industry particularly in northern consumer countries remains an extremely lucrative industry.

According to the International Coffee Organisation website (2012) coffee remains the most

widely traded tropical agricultural commodity with exports estimated in 2009/10 at $15.4

billion US dollars for the shipment of around 93.4 million bags. Notwithstanding the very

important distinction identified in the value chain between selling a raw material and a final

product with symbolic and in-person quality attributes added, Daviron (2006) argues that

there is still scope within the value chain for coffee producers to obtain better returns for their

produce; not least in view of the data previously presented which suggests that while the

global coffee markets were regulated by the ICA- producers were able to retain up to 20% of

the retail value produced in consuming countries. ‘In a sense, we can argue that fairtrade

(FLO) has substituted the quota system as the guarantor of a fair distribution of value along

the coffee chain. The notable difference is that fairtrade represents less than 1 percent of the

market’. (Daviron, 2006, p219) Southern coffee producers need to increase the value of their

30

commodity to engage with the markets more competitively. How this is done will be looked

at in more detail further on in this section.

Although the table above relates to a study conducted 10- years ago, it remains useful for a

number of reasons: (1) it outlines certain key processes in the supply chain that are not shown

in the diagram of the international supply chain (figure 1). In this respect it begins to break

down the processes and assigns values to each stage of the value chain. (2) It captures

historical data relating to the Netherlands. While it is not particularly relevant to this study- it

is worthy of mention (if looking at regional innovation in a global context) that this country is

a major coffee consuming country and that a Dutch company setup the Max Havelaar

Foundation in 1988 (later called the Fairtrade Label Organisation) that purports to provide

southern coffee producers with a guaranteed ‘fair price’ and premium finding for social and

technological cooperative led schemes by facilitating access to mainstream conventional

markets; both arguably relate to a region that has strong ties with the coffee industry and

significant innovation therein. (3) it is possible to see that ‘doing nothing’ to the crop renders

the lowest value through sales (4) Perhaps by establishing a generic bench mark upon which

to assess distribution values- it is possible to expand and develop this into a model of

transparency in consumer countries. Peter Griffiths (2012) asserts that a longstanding defect

in current so-called ethical models (including Fairtrade, FOL) is a lack transparency,

traceability and impact evidence for the claimed ethical systems.

Generically noting the amount of the retail value retained by the coffee producer would

constitute an important leap in the direction of greater transparency. What is more it is

argued that this data along with the other academic contributors in this section provides a

basis upon which it is possible to begin to consider what is considered a ‘fair price’ for coffee

producers to receive. Clearly this is a highly emotive, open-ended topic depending on who is

asking the questions and where the balance of power lies. Indeed if for instance a cappuccino

costs £2.50 in the city of London, it is reasonable in line with Harford’s (2006) assessment

that the coffee bar retailer and importer should expect a larger share of the retail value (not

least to recoup their costs, overheads etc) however if in accordance with the research data

presented above, farmers previously enjoyed up to 20% of the retail value achieved for their

sold produce- then this can provide a baseline figure for which to assess what constitutes

good value remuneration for coffee producers at today’s rates? The next section will examine

the merits of three ethical trade organisations by reviewing information displayed on their

respective websites; as well as reviewing an interview record containing anecdotal examples

31

and suggestions as to how systems of trade with major inefficiencies embody hidden value

therein.

5.3 ETHICS; SYSTEMS OF TRADE AND ‘SWITCHING LANGUAGES’

Each of the case study models below operates within the perimeters of ethical trade

through either mainstream fair-trade channels or alternative trade systems. Two relate

directly to the coffee industry while the third example acts as a control to ground the structure

in broader supply systems that are historically linked to the evolution and sustainability of an

alternative trade movement that has been significantly notable since the Second World War

period [1939-1944] (Fridell, 2004) (although arguably churches and other charitable

arrangements have always adopted elements of ethical conventions in trade). All of which

also bear significant links to points of reference in my main research with my participant:

Peter Griffiths, renowned Economist, Author and critique of the Fairtrade Labelling

Organisations shortcomings amongst other areas. Peter Griffiths (henceforth referred to as

Griffiths) provided a detailed interview account based on his field experience and of the type

of prerequisites that can produce an environment in which agricultural coffee producers can

engage more equitably in order to achieve reasonable reimbursement for their labour.

In his interview Griffiths (2012) stated that much of his past work has been involved with

modifying agricultural marketing to get efficient middlemen, efficient markets and higher

cash incomes for farmers in the global south. He said that a lot of counterproductive

government policies-including ever-changing agricultural development initiatives are often

contradictory and cumbersome. Inefficient markets with influential (often with in-country

corruption) state marketing boards also conspire to produce a bureaucratic, disconnected

mesh of disorganization. ‘We had a problem (1930’s) when the entire world put in state

marketing boards. Because the perception that the middle men were stealing...their margins

were so much higher than the farmers- but because marketing is more difficult and expensive

than production...they have broken it up but not very successfully...war time they put in

marketing boards as a way of getting cheap food from Africa so that they didn’t have to pay

world prices for things during the war....the point is with the deregulation they haven’t

managed to solve that because there is a situation created where someone like Nestle can

acquire a marketing thing.’ (Griffiths: 2012) In relation to changing the situation from

complete pockets of power and influence between what he refers to as a racket of marketing

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boards and international traders colluding- (in favour of greater access and equity for coffee

producers) Griffiths notes three key areas of efficiency needed, namely: (1) efficiencies in

marketing systems. He referred to current shifts in third generation models with the use of

mobile technology that allows farmers/producers to gain up to date access to prices and other

vital information. (2) Efficiencies in equipment; a need for effective equipment in factories

‘the physical’ he referred to an experience in Tanzania where their cotton ginneries had

stopped working because they had fallen into disrepair with no allocated funding or spare

parts. This type of situation gives way to surplus stock rotting (3) viable ‘access to

competitive export markets’. In this respect, I believe that Griffiths was referring to

transparent, well connected international systems that can produce strong returns for the

global south through trade. ‘so you often get a racket between the exporting people-

particularly marketing boards and commodity traders...in one day you are going to get a big

difference between the buying and selling prices- that goes up and down through the day. So

they’ll register all the buying and selling prices (at the figures that provides them with the

largest returns)...minus 2% or whatever they’re charging- (potentially) they could be

pocketing another 10%- which if you take it right down to the farm level- that could be

double the farmers income’. (Griffiths: 2012) In accordance with Griffiths assertions efficient

(transparent) trade systems (from stock-markets, through to marketing boards/national

policies-to farm gates) access to current information and functioning equipment provides

sufficient scope to allow for a reasonable increase at a local level for coffee producers if

structured comparatively. Daviron (2005: 219) further suggests that there is capacity for

coffee producers themselves to achieve better remuneration by adding symbolic value to their

produce within what can be seen as a sophistically managed ethically driven system that (1)

provides symbolic content through securing property rights; (2) by shifting quality

conventions with more information broadly provided about the material quality of products

(often the preserve of importers/roasters); (3) by promoting greater transparency and

connectedness between producer –consumer and consumer – producer. This would require a

commitment to improved information flows within the industry as a whole. Notwithstanding

clear questions about who’s responsibility it is to enact this, or who has the power to do so?

(both questions will be discussed in the next section) it is important to reflect on whether an

embodiment of some or all of Griffiths (2012) and Daviron’s (2005) suggested criteria exists

in the three case study models outlined below.

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Case Study Model 1: Earth Friendly Coffee Company

‘Our mission has been working with international rural development nonprofits to secure a commercial grade roasting facility for the Maya Ixil Farmer Cooperative. This will enable these indigenous people to process their extraordinary coffee from seed to cup. They will be able to export this finished value added product to customers like yourself’. (Earth Friendly Coffee Company, 2012)

The Earth Friendly Company is based in Denver, Colorado, USA. It is quoted as wanting to provide an indigenous Guatemalan community with the opportunity to achieve the best possible returns on their coffee production.

By introducing a coffee roasting and production plant, as well as regional advocacy to establish sufficient mechanisms for export- this company appears to have succeeded in developing a fully functioning coffee export business that provides employment, training and infrastructure for local indigenous people working in the sector; thus transforming their income potential to a claimed ‘50% of the speciality coffee dollar’.

The company website displays pictures, information about the community and crops; it suggests that boosted employment opportunities has provided an alternative to the illegal immigration issues of some Central American families forced to leave their farms/communities in search of a better income.

The coffee produced by the Maya people is documented as cultivated in volcanic soil in extremely high altitudes- this gives it a high quality mellow flavour.

Average prices: x1 1lb (beans or ground) bags medium, dark or decaf $15.49- $15.95; x6 packets $76.50 medium, dark - $81.00 espresso; bulk x30 packets $324 [UK internet comparison on Guatemalan coffee showed prices: Elephant range 500g £15.00 and Antigua 227g (8oz) £4.50] *1

Social justice campaigns appear on the website and supporters (customers) of the initiative are invited to generate a private income by capitalising on the bulk discount and sales margins.

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Case Study Model 2: Oromo Coffee Company

‘We believe in treating everyone we deal with fairly – from Ethiopian farmers who grow our coffee, to the shops and cafes that stock our products. By doing this, and keeping our supply-chains as short and transparent as possible, we aim to create a successful business that can create employment and training opportunities for people in the UK, whilst also supporting small farmers in Africa’. (Oromo Coffee Company, 2012)

The Oromo Coffee Company is based in the United Kingdom. It is quoted as wanting to provide a small group of Ethiopian refugees in the UK through a social enterprise- with opportunities to import and distribute Yirgaceffe, Harar and Limu coffee from the Oromo region in Ethiopia.

The company website displays pictures, information about the community and crops; it suggests that farmers from the Oromia Coffee Cooperative Union in Ethiopia as well as UK communities benefit from its sales.

Oromo Coffee imports are fairtrade branded and organically certified under the Fairtrade Labelling Organisation (FLO). This purports on Oromo’s website to help African farmers to ‘earn a decent living.’

Average prices: Yirgacheffe (beans) x1kg £11.15 each or x8 £92; Harar (ground) x8 £72 (£9 ea); Yirgacheffe (ground) x12 227g £38.94 (£3.24 ea) [UK internet comparison (not FT/organic) Yirgacheffe (beans) 1kg £28*2 and Yirgacheffe (beans) 908g £16.99 *3

Oromo use a company called Mission Brand for marketing and sales support; a company called Asone Design Limited to develop their brand, artwork and website; a business called Boiling Point to do sourcing, roasting and blending; and a foundation called the Lorna Young to design training programmes and help promote the company to new customers quoted on the website as a Cafe in the Abbey and the Duke of Cambridge pub.

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Case Study Model 3: Fairs Fair Co

‘Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalised producers and workers- especially in the South. Fair Trade organizations (backed by customers) are engaged activity in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.’ (Fair’s Fair, 2012)

Fair’s Fair is based in Australia. It was founded in 2006 and is quoted as supporting ‘the celebration of indigenous arts and culture through selling handicrafts.’

The company suggests that it procures products that meet socially just and environmentally sound standards. They operate an ethos of offering good returns (for producers) and work flexibly to ensure upfront payment prior to production to assist producers with their sourcing/production arrangements. A small list of mandatory standards are cited such as safe and healthy working conditions, no exploitation and traditional methods (and material) are encouraged to preserve and develop traditional skills.

The company website displays pictures, information about the producer communities, products and development campaigns/community events/initiatives. Goods are sourced from across India, Indonesia and Australia.

Average prices: As these are individualised products set against sourcing criteria an internet comparison is not deemed purposeful.

A central purpose of the business is cited as ‘promoting fair trade at an accessible, local level; spreading awareness of alternative trade as means of challenging unfair trade structures in order to the improve living conditions of the poor worldwide.’

5.4 A REVIEW

While all of the case study models build on consumer knowledge of the respective

commodities, producer identities, regions and production methods to a greater or lesser extent

case study model 1 is the only model that extensively operates two-way information sharing.

The Earth Friendly Coffee Company model somewhat stands alone because it can be

described as constituting a well designed efficient structure that radically shortens the supply

chain by the coffee producers roasting, packaging and exporting their own coffee beans; thus

capitalising on the high added valued achieved during that stage of the supply chain process.

As described by Daviron (2005) the value from symbolic and (to an extent) in-person

attributes are directly connected up through engaging with the enormous international coffee

market in the United States of America. It is not clear from the website whether this coffee

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goes through any government controlled systems or marketing boards in Guatemala, however

it is quoted that the potential benefits for the Mayan community is that they have the

possibility to retain ‘up to 50% of the speciality coffee dollar’; this is clearly over and above

the average retail value retained by southern producers- even when prices were higher with

the ICA regulating the industry. (Daviron, 2005) Other marked attributes include: (1) its

prices appear to be competitive when compared with a British equivalent at today’s market

prices. (2) The company have a self- fulfilling marketing structure (that is comparable to the

pyramid model) of encouraging private enterprise off the back of the product. This has been

controversial in get rich quick pyramid schemes- however it could prove self-sustaining if the

quality of the product is good; indeed I have no reason to believe that it is not- particularly

given that it is grown at high altitudes, organically in volcanic soil. According to Weissman

(2008) such conditions provide an ideal environment for good quality, distinctively flavoured

Coffea Arabica cherries. (3) This company appears to connect with realistic socio-economic

and environmental issues faced by poor people with difficulty getting reasonable returns

through skewed agricultural international trade channels. ‘It is an incredibly difficult

decision being a farmer in the third world. You’ve got a crop, you’ve got to decide how much

to sell; you have to plan how much to eat every month’. (Griffits, 2012) Fridell expands: ‘Is it

right that consumers in North America have the ability to make life or death decisions for

small coffee producers in Latin America’. (Fridell, Trent University, 2012) From the

perspective of an overview of the Earth Friendly Coffee Model, it represents an incredibly

good framework for other small-scale community development and empowerment initiatives.

Further studies could examine this model in respect of some of countries where some coffee

producers live on the parameters of life and death. (Griffiths, 2012)

Case study model 2 the Oromo Coffee Company as a branded Fairtrade (FLO) product

appears to resonate with a number of the limitations that have been widely documented about

the brand. Daviron (2005, p225) would argue that the FT brand has become a significant

driver in integrating it into mainstream conventional markets as a socially and economically

responsible product; however within the material culture approach it does not uncover neither

quantifiable –substantive impact data, nor intricate functioning structures of certification and

costs incurred by producer-cooperatives in the south and retail outlets/businesses in the north

to carry and sell its branding. ‘We have also seen that sustainability certifications and direct

contracts between speciality roasters and producer cooperatives do not necessarily provide

transparency of the kind and at the level that facilitate a process of producer empowerment.’

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(Darion: 2005, p226) Griffiths (2012) suggested that the FT model is badly designed and

inept as a subsidy (aid) initiative. ‘The people making the money [FLO] have no incentive at

all to change this. The money comes whether or not any money ever reaches the farmer’.

(Griffiths, 2012) The Oromo Coffee Company model on its website describes itself as a

‘unique social enterprise: the first ever community owned direct trading coffee business’-

however it partners with up to four organisations that cover: branding, marketing, sales

support, sourcing, roasting etc.

Similarly there is no information as to: how much income the Ethiopian partnering

cooperatives get or have to pay out for compliance certification; what training programmes

are sponsored, by whom and for what businesses/communities; who the direct beneficiaries

are; how the organisation is organised; functions; how is their supply chain shorter (given

linked partnering organisations) or indeed how it performs accountability controls. It

suggests that the stakeholders are treated ‘fairly’ but does not provide any anecdotes or

further information on how. Oromo may well have the data to address these points; however

none of this information has been made available on the official website. This is another area

where this study could be expanded to include- two-way participation with each of the case

study organisations. Nevertheless, this is a review from the information contained on the

company websites against a set of fixed criteria that has been applied to each organisation.

This control allows an assessment to be made about exactly how much company information

is divulged through mainstream channels.

The third case study depicts an interesting picture for a number of important reasons. This

model presents a detailed list of ethical criteria by which it operates on its website. In this

way it sets what can be considered as setting a high standard for its terms of trade with both

the producer and respective customers. For instance it suggests that there will be no

exploitation of children; safe and healthy working conditions; transparency in trading

relationships and a commitment to encourage traditional cultural methods of production to

preserve customs; now consider why most (if not all) companies cannot (or rather do not)

produce a voluntary code, or set of clear standards such as these. For instance Nike as

referred to by Fridell (2007) that is quoted as not sourcing material responsibly, why not?

Shiva’s (2002) plight was to preserve traditional agricultural customs and community

empowerment. Why must highly subsidised canned tomatoes be cheaper to get than home-

grown fresh tomatoes in the example from Ghana?

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If alternative trade companies such as Fair’s Fair can operate profitably- as it appears to have

been since 2006 and as we note the alternative network of trade has been increasing since the

late 1930s ;(Fridell, 2004) then it is conceivable that such ethical models can harness greater

levels of transparency through increase information sharing and affirmative policies to stand

as representations for challenging established systems of production, consumption, sharing of

information chains and commodities. ‘One can find innovative systems to engage them and

at the same time help transform their own lives’. ( Kuper, 2005, p10) Andrew Kuper, author

of books such as Global Responsibilities: Who must deliver on Human Rights? (2005) And

Democracy Beyond Borders (2004) (among others) is at the cutting edge of the global debate

on where the balance of responsibility should lie on implementing ethical standards that

deliver on Human Rights, labour protection and environmental preservation. If governments,

international institutions and conventional corporate markets are failing to deliver or make

significant strides- then it is questioned how else can the momentum in ethical trade evolve?

Part of the answer could be- through commercial /commodity trade- but ultimately the debate

at the Carnegie Council forum (2005) was that ‘consumers’ could and should evoke change

towards greater ethical standards through collective people power. In this respect, model

3broadly represents the direction in which ethical trade relations and consumerism is headed.

These are vast subject areas that are not best served as an inference, rather it is noteworthy to

espouse that each case study model depicts useful linkages within current development

discourse about the present and future of ethical trade and consumerism.

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6.0 COFFEE: THAT’S THE PAY-OFF

I would argue that Peter Griffiths’ idea for ethical consumerism through corporate

transparency exists within the Earth Friendly Coffee Company model because of the

following attributes:

(1) Crucially Mayan coffee producers from Guatemala are quoted as receiving around

50% of the speciality coffee dollar. The crux of this point is not necessarily the 50%

income retention- but a clear structure for a publically documented audit trail that

goes back to a defined community of coffee producers.

(2) The Earth Friendly Coffee Company (EFCC henceforth) as it stands is set up to assist

indigenous Guatemalan Mayan people to increase their income potential by

processing, roasting, packing and then exporting their coffee beans. In accordance

with the coffee values data presented in sections above 5.2 documenting a coffee

paradox and 5.3 suggesting a shift in languages- this paper consolidates the findings

of Daviron (2005) Harford (2006) Fridell (20070 and Griffiths (2012) that increased

value is ascribed to coffee further down the supply chain and that agricultural

producers often get the least remuneration because they routinely sell a raw material

commodity. In this respect EFCC is operating a viable model that is likely to render

substantive claims that are supported by the prevailing economic systems and

processes. Namely, the Mayan community are highly likely to benefit from this

model.

(3) Similarly Griffiths considers campaigns with a single issue to be more effective.

‘One issue and you’ve got action’. (Griffiths 2012) In his interview Griffiths

criticised the Fairtrade brand for making sweeping broad claims about supporting

‘trade justice’ and women’s issues of empowerment- without specifying how. ‘If you

look at their costing, you divide your million dollars going to something, you divide it

among thirty countries- you’re not going to get very many people [consultants] for

very long to do that’. (Griffiths, 2012) Therefore EFCC has a self sustaining model

that is making money not- reliant on subsidies or hiked prices likely to distort market

prices.

(4) The EFCC’s model to facilitate incomes through trade also resonates with realistic

labour migration patterns in developing regions that have limited access to

employment opportunities. (Harford, 2006) Indeed Griffiths’ use of language in his

interview and work in famine prevention talks about the devastation caused by

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distorted markets, corruption and under investment which are arguably drivers for

impoverishment unemployment and migration (Griffiths 2012)

(5) In his paper Ethical Objections to Fairtrade (2011) Griffiths strongly critiques the fact

that northern consumers are unable to distinguish on packaging how much of the

premium that they pay actually goes to southern farmers. The EFCC model appears

to engage competitively within the coffee industry without charging a premium for an

association with ‘ethics’ or certification. On the contrary- EFCC’s model actually

encourages private enterprise because of its bulk buy reduced price structure.

To all accounts, on the face of it, this model presents a robust ethical product- this shows the

hypothesis to be true.

What is more, the narrative of this paper can be seen to draw upon important linkages and

add an insight into certain topic areas more frankly than is shown in mainstream discourse.

For instance, in the interview, Griffiths (2012) talked directly about corruption with rackets

between marketing boards and commodity traders; he identified loop holes in the system

when the ICA were regulating the coffee trade industry- whereby he gave an example of a

corrupt African government discouraging production so that they could sell their quota

‘because one stamp in that was an entitlement to sell- was worth (approx) $190 million on

the black market’. So it suited Sierra Leone marketing board not to market’. (Griffiths, 2012)

Griffiths did extensive work in Sierra Leone and published a book on his experience there.

When I read about the International Coffee Agreement – the texts seldom outlined important

details like corruption on this scale. In actual fact in this study (section 5.2 coffee paradox)

Daviron’s (2006) statistical data about the global value chain had unaccounted or unexplained

value missing from the equation. Additionally Griffiths’ (2012) assertions about the

marketing boards being introduced in Africa as a means of developed countries getting

cheaper food during the war is not in itself novel- particularly as trade is historically linked

with exploitation control and greed through slavery, colonialism and some would argue

through capitalism; however it is important to note that what is contained in published texts

that are subjected to editorial policy rules, scrutiny and vested interests can present a

disconnect from actual accounts developed through experience at the grass roots. In this

context papers such as this are able to bridge the divide by capturing personal accounts as

well as reviewing broader discourse.

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The data produced through this paper identifies and objectifies important systems that both

explicitly and implicitly govern trade - and by extension consumer choices. Through

increased information sharing and a shift in a production model it can be seen that a shifting

of language can produce completely different economic outcomes. With credible transparent

ethical models of trade, consumers can both learn more and participate within the sector in

the knowledge that collective affirmative action can produce positive results. (This is

demonstrated in the Earth Friendly Company model) This paper has also identified that there

are efficiencies that can be made within the current trade system that will also produce better

economic outcomes for poor people in the south. A trading in ‘ethics’ is maybe what is

needed to capture mainstream markets and get it on board; with examples of alternative trade

networks setting and maintaining high standards in ethical exchanges, two way information

flows all the way along the supply chain constitute a good starting point to advance ethical

consumerism.