Why they matter, why they exist
The certifications and special labels on coffee today grew out of two concerns: For the people who produce it and for the environment.The people
The Fair Trade movement arose in both the United States and Europe in the 1980s. Coffee had always been a boom and bust crop in Latin America and Africa, with little of the wealth it created going to the people who pruned the trees and picked the beans. In many countries, a day's pay for picking coffee beans wouldn't buy a fancy cup of coffee at Starbucks. By guaranteeing a minimum price for green coffee, the founders of the movement hoped to improve working conditions in the producing countries and reduce social problems, such as children dropping out of school to work or bankrupt farmers migrating to cities in desperation, where they joined huge numbers of other urban poor.
The environment
Even though coffee is the second most widely traded commodity in the world, it is still mostly grown on small farms. The traditional techniques used by those farmers involved growing coffee under a partial canopy of shade trees. To an uninformed or casual observer, a coffee farm can look like just another stand of forest. Yet it's a both a producing farm and a thriving natural habitat for a variety of wildlife.
Meanwhile, in search of higher yields, many large coffee plantations, sometimes with support from the U.S. Agency for International Development and the World Bank, pursued "technification." Producers grew coffee in open sunlight. The land was clear cut and coffee trees were planted in rows, like corn in Iowa or soybeans in Ohio. This so-called "sun coffee" produced greater quantites, but at an environmental cost. Pesticides replaced the birds that ate harmful insects on traditional plantations. Commercial fertilizers replaced the natural mulch from the tree canopies that had been cut down. Erosion, chemical runoff and other problems resulted.
At the same time, in the 1990s, expert biologists and everyday birdwatchers alike became increasingly alarmed over the effect of habitat loss in Latin America on bird populations, including some popular species that summer in North America (such as the Baltimore oriole shown here at a feeder). Suddenly, birdwatchers in the United States had a personal reason to care about how their coffee was grown thousands of miles away.
From those forces grew the coffee certifications that guide consumers today.
Fair Trade certification
What is Fair Trade coffee?Fair Trade is a certification granted in the United States by Fair Trade USA, a non-profit organization that began certifying coffee in 1998 and has since included many other products, ranging from tea to chocolate to fruits and spices.
Fair Trade USA (previously called TransFair USA) is part of FLO International, a 23-member international association of fair trade labelling organizations that develops the standards producers must meet to use the Fair Trade label, shown here.
What are the environmental standards?
Fair Trade standards encourage sustainable agriculture practices, but farmers do have some leeway. Most Fair Trade coffee is also certified organic, for example, but agrochemicals can be used by those not certified as organic. Most (but again, not all) Fair Trade coffee is shade grown under natural tree canopies.
Farmers must also follow sustainable practices for disposing of hazardous and organic wastes, maintain buffer zones around bodies of water, and minimize water use, avoid erosion and conserve the soil.
What are the labor standards?
The foundation of Fair Trade certification is the establishment of a minimum price. A guaranteed minimum price keeps small farmers in business and prevents the decay of rural communities based on agriculture. It enables more families to send their children to school, rather than having them work in the fields.
The current minimum prices paid for high-quality arabica coffee beans is $1.21 per pound in Africa, Asia, Mexico and Central America, and $1.19 per pound in South America. Beginning in June of 2008, the minimum payment will increase to $1.25 per pound. Another 20 cents is added if the coffee is also certified as organic. These prices are paid to the farmers' cooperatives, which then distribute profits after expenses. Not all coffee grown by small farmers meets the standards for these minimum prices.
Fair Trade farms must also meet labor standards such as paying a minimum wage to workers, allowing workers to organize, and ensuring health and safety standards.
What's the downside?
Until FLO International announced an increase in the minimum price in late 2007 (taking effect in 2008), the Fair Trade price paid to coffee farmers had not been increased since 1994, and some felt an increase was long overdue.
As with all these certification programs, costs can be difficult for small farmers. Fair Trade USA says most cooperatives pay annual certification fees that range from $2,500 to $10,000, though discounts are available for smaller groups.
Another common criticism is that only these cooperatives of small farmers can participate. Individual farmers, small or large, cannot get the certification on their own.
From a completely different perspective, proponents of free trade argue that price controls may benefit a few but at the expense of many. Some, especially in the U.K., are turned off because they believe the Fair Trade organization there is too preachy and spends far too much money promoting itself.
How does the coffee I buy get certified as Fair Trade?
Coffee producers form cooperatives that agree to meet the Fair Trade environmental and labor standards. FLO inspectors visit the sites to determine if the criteria are being met. Followup inspections are done annually.
Direct Trade coffee
What is Direct Trade coffee?Direct trade is a term used by coffee roasters who buy straight from the growers, cutting out both the traditional middleman buyers and sellers and also the organizations that control certifications such as Fair Trade and Bird Friendly, for example. Direct trade proponents say their model is the best because they build mutually beneficial and respectful relationships with individual producers or cooperatives in the coffee-producing countries. Some roasters do it because they are dissatisfied with the third-party certification programs, while others want to have more control over aspects ranging from the quality of the coffee, to social issues, or environmental concerns.
Another kind of direct: a farmers' coop
As the main article at left explains, the weakness of direct trade is you have to trust the roaster, because there isn't necessarily someone looking over his shoulder to make sure he's doing what he tells the consumer he's doing. What if you could buy directly from the farmer yourself? Short of traveling to Latin America or Africa (which would make for an enlightening trip but expensive coffee), you can buy from Pachamama, a cooperative established in Davis, california, in 2001 but owned by growers in Latin America and Ethiopia. The members get better than Fair Trade prices and run the coop through a board of directors.You can buy Pachama coop coffee in some stores or directly from the coop on its website.
What are the environmental standards?
Intelligentsia says it examines farms to ensure that "healthy environmental practices" are followed. Inspections address such issues as use of herbicides and pesticides, disposal of wastewater, and maintenance of forest cover.
With that flexibility also comes fuzziness. While other standards may spell out exact requirements for buffer zones and percentage of forest cover, Intelligentsia specifically says its standards are "not dogmatic" and recognize the need for different standards in different growing environments. As a result, some Intelligentsia Direct Trade coffees may be organic, but others are not.
Cooperative Coffees: a direct approach
Cooperative Coffees is a cooperative of 16 roasters around the United States (plus a handful in Canada) that buys green beans directly from growers in Latin America, Africa and Asia.Each roaster operates independently. Some tout the Fair Trade logo, others emphasize selling organic coffee.
Then there are others, like Dean's Beans, a Massachusetts roaster whose founder is not reticent to tell you he's a former environmental lawyer. Actually, he's not reticent at all. Dean's Beans is quite assertive about promoting itself as going beyond Fair Trade standards and selling only organic coffee and only "fair trade" coffee as Dean's Beans defines fair trade. Dean's says its standards are even better for producers than other certifications.
The company is also not afraid to take shots at the big guys who buy a Fair Trade certified coffee as a small percentage of their total purchases but make much of their social responsibility in their marketing efforts.
On the opposite U.S. coast is a family-owned roaster, the Rogers Family Company in California, that roasts more than 30 million pounds of coffee a year and spends $1 million a year on projects to improve the living conditions of workers on the coffee farms it buys from. But it has also gone a step beyond this kind of direct-trade involvement and actually owns farms in Central America, giving the company total control over environmental and labor conditions there. Rogers has also undertaken efforts to become carbon-neutral.
What are the labor standards?
Intelligentsia pays growers 25 percent above the Fair Trade price. Beyond that, it takes a flexible approach to labor issues, as it does with environmental issues. The guideline is economic sustainability. Are all parties benefiting from the coffee trade?
Counter Culture currently pays a minimum price of $1.60 per pound as part of its direct trade certification. Labor standards are not addressed.
What's the downside?
Whether in the case of Intelligentsia's Direct Trade label specifically, or other coffee roasters and vendors in general, the consumer must believe in the company. If you trust the company to stick to its own standards, without third-party certification (and if you agree with their standards), then all's well.
But there's no outside enforcement, so standards could be changed or weakened at any time.
Counter Culture has tried to address this fundamental weakness by hiring a U.S.D.A.-certified firm, Quality Certification Services (QCS), to partner with Counter Culture and run the program. This gives the customer at least some level of reassurance that the standards are truly being met.
How does the coffee I buy get a direct trade certification?
Intelligentsia sends its coffee buyers to visit each grower or cooperative at least once each year for an inspection. Counter Culture certifies suppliers in its direct trade program once a year and Counter Culture staff visit each grower at least once every two years, but the program requires "personal and direct communication" with the farmers on a more frequent basis.
Bird Friendly coffee
What is Bird Friendly coffee?
Bird Friendly is a certification created by the Smithsonian Migratory Bird Center (SMBC), which is part of the National Zoo based in Washington, D.C. Bird Friendly standards are the strictest of the third-party environmental standards. Certified coffees carry this seal.
What are the environmental standards?
The SBMC requires that producers meet the requirements for organic certification first, and then meet additional criteria to ensure they are maintaing the forest cover that provides habitat for birds and other wildlife. As a result, Bird Friendly coffee offers all the environmental benefits of organic coffee.
The additional standards, however, require a minimum of 40 percent shade coverage and also make recommendations for the diversity and size of trees that make up the forest canopy. These standards ensure a variety of habitats that supports a wealth of wildlife. Surveys by biologists have found that a shade coffee plantation is home to almost as much biodiversity as untouched forest.
What are the labor standards?
The Bird Friendly standards are not intended to address labor conditions, but the requirement for organic certification does create some benefits for workers, as described in the organic coffee section.
What's the downside?
There are costs involved, as with any of the third-party certification programs. In many cases, the obstacle to Bird Friendly certification is not with the SBMC's requirements, but with the difficulty and cost of obtaining organic certification, which may require years of effort and expenses before there is any return for the grower.
In 2007, the SBMC changed its rules so that Bird Friendly certification of coffee farms lasts three years, instead of one. The SBMC reasonably notes that forest cover changes little from one year to the next, and reducing the number of inspections helps control costs for the farmers. The farm still must be inspected annually for organic certification.
One drawback for the consumer is that Bird Friendly coffee can be hard to find.
How does the coffee I buy get certified as Bird Friendly?
The SBMC works with inspection agencies in various countries. A producer who wants to be certified must schedule and pay for an inspection by one of those agencies.
Rainforest Alliance certification
What is Rainforest Alliance certification?The Rainforest Alliance is a non-profit, tax-exempt organization based in New York. Its mission is to conserve biodiversity by promoting sustainability in agriculture, foresty, tourism and other businesses. The Rainforest Alliance certifies coffee, as well as other products and services, when it is produced under certain standards.
In general, Rainforest Alliance standards are intended to protect the environment and the rights of workers. The basic guidelines are called the Sustainable Agriculture Standard and additional specific rules apply to coffee producers. Certified coffee carries the seal shown here.
What are the environmental standards?
Coffee farms must maintain (or restore) natural forest cover to achieve 40 percent shade coverage. The standard calls for at least 70 trees per hectare (about 2.5 acres) and at least 12 native species. Farms can still be certified if they don't meet these standards but can show they have a plan to meet the goal and are working toward it.
Farmers are not allowed to alter natural water courses. While they can use chemicals, such as pesticides, they must maintain buffer zones of natural vegetation between the crop areas and areas used by humans, including public roads.
The standards also prohibit such activities as trafficking in wild animals, destruction of ecosystems, dumping untreated wastewater, and other harmful practices.
What are the labor standards?
The Rainforest Alliance standards try to limit child labor. Children under 15 cannot be hired and minors are not supposed to lift more than 20% of their body weight or have to work on steep slopes or in dangerous areas. They should be accompanied by a parent or guardian. Farmers are expected to take steps to allow minors to continue their education.
Farmers must have non-discriminatory hiring practices and must pay legal minimum wages.
What's the downside?
Rainforest Alliance standards aren't as strict as the Smithsonian Migratory Bird Center's Bird Friendly standards. Farms can fall short of the Rainforest Alliance standards and still be certified if they have a plan for achieving the standards.
A more common criticism of the Rainforest Alliance standard is that as little as 30 percent of the coffee in a container can be grown under Rainforest Alliance criteria and the coffee can still carry the Rainforest Alliance seal. The buyer doesn't know about the conditions under which the other 70 percent was grown. You can avoid this issue somewhat by looking for labels that say 100 percent Rainforest Alliance certified.
Also, as with other third-party certifications, there's a cost to the producers. Of course that can be offset by the higher prices received for their beans.
How does the coffee I buy get certified by the Rainforest Alliance?
If a coffee farmer wants to earn the certification, he can request an inspection. Rainforest Alliance volunteers in the exporting country will examine a coffee farm, make suggestions for improvements, if needed, and make a recommendation for or against certification. The recommendation is reviewed by an independent panel. Once approved, the producer can use the Rainforest Alliance seal on his products.
Coffee producers are just one of many groups the Rainforest Alliance certifies. It offers certification of sustainable practices for timber companies, pineapple farmers, ornamental flower growers, and many other kinds of businesses.
Organic coffee
What is organic coffee?
In the United States, the U.S. Department of Agriculture sets standards that must be met for a product to be labeled "organic" and carry the seal shown at right. In the case of coffee, producers cannot use synthetic substances such as most pesticides, herbicides and fertilizers. If coffee is labeled "organic," at least 95 percent of the beans must have been grown under organic conditions.
What are the environmental standards?
The organic standard is intended to assure the consumer that the product has no synthetic ingredients or additives, rather than showing that it was produced in an environmentally friendly way. However, the two are certainly compatible.
Obviously, at one time, all farming was organic. Following those traditional practices on coffee farms today reduces the amount of herbicides, pesticides and fertilizer entering the ground, maintains partial forest canopy, reduces erosion, etc.
What are the labor standards?
Again, the organic standard is not aimed at improving working conditions in the coffee-producing countries, but it helps. Pesticides used on coffee farms really don't make it to the consumer. What little residue isn't removed in the processing of the coffee beans is burned off by roasting.
But the use of pesticides and herbicides is a serious health concern for the workers, and one that's not an issue with organic coffee.
What's the downside?
There are costs involved, as with any of the third-party certification programs. Many small, family-owned coffee farms are organic by necessity. They can't afford chemical pesticides and fertilizers anyway. But they also cannot afford to pay for inspections to achieve certification, and therefore can't earn the higher price for their beans.
Also, it's hard for even a diligent inspector to ensure that no synthetics are ever used, based on a once-a-year inspection. By regulation, coffee cannot be labeled organic unless synthetics have not been applied to that plot for at least three years prior to the harvest that's labeled as organic.
How does the coffee I buy get certified as organic?
Various non-profit organizations and for-profit companies offer inspection services. Inspectors visit farms to confirm the standards for organic certification are being followed.
Carbon-neutral coffee
What is carbon-neutral coffee?The most recent "certification" used to promote coffee (and other products) to environmentally aware consumers is the "carbon-neutral" label. By its nature, coffee is a product that has the potential to create a large negative environmental impact. In the worst case, forests are cleared in the tropics to make way for sun coffee plantations that lead to water contamination by pesticides and herbicides, erosion, and loss of habitat. Then the coffee is shipped to developed countries, roasted, and shipped again to consumers, consuming energy and adding to emissions of carbon dioxide and other greenhouse gases widely blamed for global climate change. For environmentally concerned consumers, this can take a little bit of the joy out of the morning cup of coffee.
Claims of carbon neutrality aim to eliminate that feeling of guilt and appeal to those consumers. A carbon-neutral business is one that, through the sum of its activities, does not add to greenhouse gases in the atmosphere. But determining a company's net emissions is anything but simple business.
There is no uniform, internationally recognized methodology or standards for determining if a company is carbon-neutral, so even more than direct trade coffee, carbon-neutral claims place an impossible burden on the consumer who wants to make a fully informed choice. Other certifications, such as Rainforest Alliance, are complicated enough, with their technical standards for biodiversity on coffee farms and the percentages of certified and non-certified coffee that can be blended together and still carry the seal. Yet these complexities are minor in comparison to the numerous factors that go into determining a company's total carbon footprint. Are both direct (exhaust from the tailpipe of the truck that transports the coffee) and indirect (emissions from the factory that built the truck) emissions considered? If the company counts the preservation of forest cover on coffee farms as a positive offset to other emissions, what assumptions are used? Do they assume the land otherwise would have been clear cut? How do they calculate the amount of greenhouse gases removed by the preserved forest? Does the company achieve carbon neutrality through changes in business operations or by buying carbon credits (essentially paying someone else to plant trees, recycle, or do something that reduces overall emissions)?
Perhaps the best that can said is that companies that have gone to the expense of conducting an audit, in order to claim carbon neutrality, are at least trying. But given all the forms of energy use and all the complexities involved in international trade such as the coffee business, proving precise carbon neutrality is a lot like trying to measure air. Actually, that's exactly what it's like.
What are the environmental standards?
In intent, carbon-neutral coffee roasters, importers or vendors are demonstrating the broadest concern for the enviornment. While organic farmers may reduce pollution in their home countries, and shade coffee growers and Rainforest Alliance producers may preserve tropical forests, which indirectly benefits everyone, the carbon-neutrality movement concerns itself with the environmental health of the entire world.
It does not set strict environmental standards for the coffee farms, however. Since the goal is to reduce the sum of the company's activites to net zero emissions of greenhouse gases, poor practices in one area can be offset by positive practices elsewhere (or by buying carbon credits).
More importantly, because there are no internationally accepted standards, each company's certification is only as good as the rigorousness of the consultant who was hired to determine the company's net emissions.
What are the labor standards?
Carbon neutrality is concerned solely with environmental impacts, not working conditions for coffee producers. But many of the companies that care enough to go through the effort to try to make their operations carbon-neutral are also concerned about labor conditions for farmers and their workers. These are addressed through direct trade relationships or by buying and selling Fair Trade certified coffee.
What's the downside?
Unless the vendor is charging higher prices, there really is no downside for the consumer in buying coffee from a company that claims to be carbon-neutral, except for the ambiguity of the standards and methods used to support the claim.
How does the coffee I buy get labeled as carbon-neutral?
Companies that wish to promote themselves as carbon-neutral hire a consulting firm to study their operations, determine their carbon footprint and make suggestions for working toward neutrality. Some of the larger international consulting firms license seals that can be used on products, much like the Rainforest Alliance or Fair Trade seals.
In the end, the carbon-neutrality claim is only as good as the company that comes up with data to support it.
Shade coffee
What is shade coffee?This generic term is used to describe coffee trees grown the traditional way, under at least a partial forest canopy.
What are the environmental standards?
Many roasters and sellers support producers who raise coffee in the traditional way, which maintains at least part of the natural canopy of trees that provides habitat for birds and other wildlife. But because there is no third-party or government certification, there are no strict standards to be met by producers who describe their coffee as shade-grown.
What are the labor standards?
Individual vendors selling coffee as shade grown may have relationships that allow them to encourage producers to follow certain labor practices, but there is no standardization.
What's the downside?
Because there is no government certification, as there is for organic coffee, or third-party certification, like Fair Trade or Bird Friendly coffee, the consumer cannot be sure exactly how the coffee was grown. One way to be sure you are getting coffee that didn't result in the destruction of bird habitat is to buy Bird Friendly coffee.
How does the coffee I buy get labeled as shade coffee?
It's up to the producer or seller to describe coffee as shade-grown.
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