Coffee Buzz

Hello. My employee-owned firm, Equal Exchange, is glad to hear this morning's discussion, as we, too, specialize in specialty organic & Fair Trade coffee.

We hope that George (who trained our QC manager, Beth Ann Caspersen) and Corby do talk a little about the revolution in the public's thinking about coffee such that millions now think about the coffee farmers - and their land - as well as about the taste profile and such.

I caught most of it. Sounded like a great info-mercial for Mr. Howell's Co. with a cafe coming to Hyde Square soon I hear. He knocked fair trade a bit without having to actually debate the issues. Associating co-ops with corruption and disincentives is a simplistic gloss that does a disservice to all of the honest, hard-working folks who have poured all-to-real blood, sweat and tears into building many of those co-ops into organizations that have made more positive contributions to their communities than any government or plantation owner or multi-national ever had before.

While we - at Equal Exchange - take exception to some bits of today's show we still think it was great for so many listeners to learn about coffee quality, preparation, and so on. After 20 years in the trade we know that most Americans are still unaware of how great coffee can taste.

Re our disagreements with certain points:
We're glad that Fair Trade did come up eventually, but its unfortunate that George made his potentially mis-leading comments about the economic dynamics of the Fair Trade coffee market. It's not that everything George said about Fair Trade was technically wrong, but without the fuller context (which he & us have, but which the public does not) it could create misunderstanding.

I'd like to try to set the record straight on a few points.

1st - the new minimum prices (announced 2 weeks ago) paid to small farmer cooperatives for Fair Trade coffee are now $1.31 for conventional coffee (not $1.26 as George said), and $1.51 for certified organic coffee (not $1.41 as George said).

2nd - the Fair Trade prices do _not_ act as both a floor and a ceiling, nor are Fair Trade buyers (which include both us and George) looking for merely "acceptable" coffee. Because of the very same coffee revolution that was the topic of today's show - and because of the more demanding expectations of today's coffee consumer - it just isn't commercially viable to pay high Fair Trade prices and _not_ offer consumer high quality. This is one aspect where the marketplace does work and protects the interest of consumers. (If it protected the needs of the small farmers equally well there would be less need for innovations like Fair Trade). Low quality just won't sell.
However, as a Fair Trade importer we (& others like George) are consistently paying top dollar, and can therefore demand top quality in return.

Re the Fair Trade prices acting as "floors" and "ceilings": Equal Exchange is one of the top Fair Trade importers and roasters in the U.S. and as such our experience is relevant. For example, for the last harvest in Mexico we paid on average $1.50 - $1.65 per pound of organic coffee, even though the Fair Trade "floor" was only $1.41. Why? Because there is - thankfully - alot of demand for organic Mexican coffee - and one has to pay more to get the best.

3rd - re how much of the Fair Trade money paid to the co-ops gets passed on to the individual farmers? George suggested that one should question whether its always a meaningful amount and that some co-ops keep too much. It should be remembered that the farmers own & govern the co-op, and together they help decide how much of the export proceeds to keep in the co-op (which is their business and which has necessary costs) and how much to invest in communal assets like clinics or water systems, and how much to pass on to themselves as individuals.

4th - If and when corruption might creep into a co-op the independent third-party Fair Trade certification kicks in, and de-certifies that co-op. They then lose access to the Fair Trade market (a powerful incentive to keep the operation clean). It's just like what would happen to a farm that failed to abide by organic certification requirements. This monitoring thereby helps to create and maintain a system that provides the coffee consumer more assurance than any individual un-certified company can offer.

I smirk that the "flavored" coffees are disappearing. I'm convinced that the way coffee is prepared is the most vital part of "my cup". I'm wondering how many others have settled on the Melitta 1-cup filter as the best accessible way to good coffee. Alarmingly, I see the 1-cup filter disappearing from shelves.

George Howell has done more for the understanding and true enjoyment of coffee than anyone out there. Just read Howard Schultz's book about the building of Starbucks and see how much he admires George and what George created with the Coffee Connection. Thank you George! I am enjoying the La Minita every morning and raising a cup in toast to you!!!

I have to say that your first half hour makes for quixotic radio -- trying to shoehorn a product whose strength is in taste and smell into an aural medium seems like awkward reportage or, less charitably, a pretentious, fetishistic indulgence for a pretentious host marked with the worst derivations of Robert Parker's purple prose. I look forward to your stinky cheese episode -- or not, as the case may be.

The brief 'tangent' into the politics and economics of fair trade coffee was interesting; as was the lead in for the evolution of American tastes. You had an opportunity to discuss the copyright battle that Ethiopia is trying to establish for establishing an AOC-style regimentation, but instead we get "hints of ginger" and another knock on Fair Trade.