...THE MARKET FOR ORGANIC AND FAIR-TRADE COFFEE Study prepared in the framework of FAO project GCP/RAF/404/GER “Increasing incomes and food security of small farmers in West and Central Africa through exports of organic and fair-trade tropical products” September 2009 The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views of FAO. All rights reserved. Reproduction and dissemination of material in this information product for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material in this information product for resale or other commercial purposes is prohibited without written permission of the copyright holders. Applications for such permission should be addressed...
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...How Fair Trade positively affects: Economy | Environment | Social Equity | It creates jobs that allow workers to gain a living wage, not just subsistence. Less money goes to a middle person; thus workers improve their lives and those of their families. When people earn a living, they enter the ranks of those who are able to contribute to society through payment of taxes. | Organic products protect the natural environment as well as workers. (For example, Fair Trade food products such as coffee, cocoa, and bananas are often organic.) 100 Fair Trade farms rely mainly on biological or organic fertilizers and natural pest control. | When a social premium is paid to communities through Fair Trade, more funds come through the community to meet basic needs including water, sewage treatment, and schools. | Money can stay in the community through purchases of cement floors, stoves, shower, etc. | With organic products and the use of organic fertilizers and natural pest control, people are safer because they are not exposed to toxic pesticides. Simultaneously, the land, water, and air are protected. | Fair Trade recognizes for labor unions, avoidance of child labor, safe and clean working conditions, and fair wages | Fair Trade farmers are able to deal directly with the market buyers and demand a living wage. With portions of their revenue being continually reinvested. | Fair Trade farms plant cocoa or coffee with shade and fruit trees. This promotes biodiversity, encouraging...
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...Agriculture and Rural Development Discussion Paper 3 The World Bank Coffee Markets New Paradigms in Global Supply and Demand Bryan Lewin Daniele Giovannucci Panos Varangis First printing or Web posting: March 2004 ©The International Bank for Reconstruction and Development Agriculture and Rural Development Department 1818 H Street, N.W. Washington, DC 20433 Agriculture and Rural Development Discussion Papers is an informal series produced by the Agriculture and Rural Development Department of the World Bank. These papers raise concepts and issues for discussion in the broader development community and describe ongoing research and/or implementation experiences from the Bank. The findings, interpretations, and conclusions are the authors’ and should not be attributed to the World Bank, its management, its Board of Executive Directors, or the countries they represent. Some of the numbers quoted are estimates or approximations and may be revised at a later stage. About the authors Bryan Lewin was previously the Economist of the Association of Coffee Producing Countries and now works in the Agriculture and Rural Development department of the World Bank on commodities and risk management. Daniele Giovannucci is a former corporate executive and market strategies expert. He advises international agencies and governments and is a senior consultant for The World Bank Group. Panos Varangis is a Lead Economist in the Agricultural and Rural Development department of the World...
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...Just Us! Coffee Roasters Issue With the growth in the fair trade coffee market, what strategy should Just Us! Roaster implement to grow and maintain its competitive advantage in the market? External Analysis Customers * Organic coffee drinkers * Persons interested in supporting the fair trade and environmental awareness. Suppliers * Third world producers of coffee beans through a fair trade arrangement Competitors * Increase suppliers of the fair trade products i.e Coffee rosters, Retailers (supermarkets, cafés etc), Wholesalers Porters Five Forces * There are no barriers to entry * No clear indication of who has the bargaining power * There are many substitutes for fair trade coffee * Lots of competition in the market Competitive Analysis | Products | Distribution method | Distributed through | Price | Just Us! | Tea, Coffee, Chocolates, Organic Sugar, Enerbeans | Wholesale & retail | Canada & US Grocery chains, health food stores, universities, restaurants, cafés, offices | $9.00 for 340g bag | Kicking Horse | Coffee | Retail | Canada, US & Europe Cafés, gourmet food stores, grocery chains, restaurants | $12.95 for 454g bag | Kraft Foods | Coffee | Retail | Target customers-college students | | Supermarket chains | Coffee, tea, sugar, plus | Retail | | | Coffee retailers | Coffee | Retail | | | 1. Kraft, Nestle and Starbucks are all well established, well known brands...
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...Globalizations June 2008, Vol. 5, No. 2, pp. 259 –274 Are Sustainable Coffee Certifications Enough to Secure Farmer Livelihoods? The Millenium Development Goals and Nicaragua’s Fair Trade Cooperatives ´ ´ CHRISTOPHER M. BACONÃ , V. ERNESTO MENDEZÃÃ , MARIA ´ EUGENIA FLORES GOMEZÃÃÃ , DOUGLAS STUARTÃÃÃÃ , & SANDRO ´ ´ RAUL DIAZ FLORESÃÃÃÃÃ Ã University of California, Santa Cruz, USA University of Vermont, USA ÃÃÃ ´ Asociacion de Mujeres Contra La Violencia, Oyanka, Jalapa, Nicaragua ÃÃÃÃ Universidad Nacional Autonoma de Nicaragua, Nicaragua ÃÃÃÃÃ ´ ´ CII-ASDENIC, Edificio Casa Estelı, Estelı, Nicaragua ÃÃ ABSTRACT In December 2001, green coffee commodity prices hit a 30-year low. This deepened the livelihood crisis for millions of coffee farmers and rural communities. The specialty coffee industry responded by scaling up several sustainable coffee certification programs, including Fair Trade. This study uses household- and community-level research conducted in Nicaragua from 2000 to 2006 to assess the response to the post-1999 coffee crisis. A participatory action research team surveyed 177 households selling into conventional and Fair Trade markets in 2006. In an effort to dialogue with specialty coffee industry and mainstream development agencies, results are framed within the context of the United Nations Millennium Development Goals. Findings suggest that households connected to Fair Trade cooperatives experienced several positive impacts in education...
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...Nutrition Culminating Is Fair Trade Fair? there are millions of people around the world that like to start their days off with a cup of coffee, not knowing how that coffee has gotten to them, or how much work is put into a single cup of coffee. Ever since 1995 the consumption of coffee around the world has grown exponentially which had also increased in 2007 with the introduction of Starbucks and other retail coffee chains. Even though coffee retail is a massive business that receives large sums of money, people that actually make the coffee bean do not seem to receive fair wages in the process and end up not being able to provide for their families. In the past decade a movement called the fair trade movement is helping these workers to support their families and earn the right amount of money for selling their product and people should support this cause and hope that it becomes a global epidemic that will put more food on the tables of the hard-working citizens of the world. One of the major reasons that us as a community should support for trade is as I said before so these farmers can provide food for their families, because most of them do not receive a fair wage for their products. if we as a society enforce fair trade we could bring these farmers out of poverty and better improve their quality of life. Even a Latin American coffee farmer was quoted to say “We are able to keep producing because of the more favourable Fair Trade price. We are able to provide food...
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...1. Coffee 1. Coffee This chapter defines coffee according to the H.S. code of the Tariff Schedule (Fig. 1-1), covering green coffee beans, regular coffee, instant coffee, and extracts, etc. Coffee beverages (excluding the products categorized as milk beverages) are discussed in the soft drink chapter instead of this chapter. Fig. 1-1: Scope of coverage for coffee in this chapter Item name Green coffee beans Regular coffee Instant coffee Coffee extracts, essensses Description Seeds prepared by removing the outer and inner skins and pulp from the fruits of coffee tree produce. They are dried in the next processing step. Roasted coffee beans prepared by roasting green coffee beans from coffee tree fruits. This category also includes coffee products prepared by grinding these roasted beans. Coffee in soluble powder, granules, and other solid forms prepared by drying extracts of roasted coffee beans. Concentrated extracts of coffee beans, which are used for industrial or processing purposes, such as canned coffee, coffee candies and other confectioneries, etc. H.S. code 0901.11-000 0901.12-000 0901.21-000 0901.22-000 2101.11-210 2101.12-121 2101.11-100 11-290, 12-110 12-122 I. Points to Note in Exports to and Sales in Japan 1. Relevant Laws and Institutional Regulations (1) Regulations and Procedural Requirements for Importing to Japan The importing of coffee is subject primarily to 1) the Plant Protection Act, 2) the Food Sanitation Act, and 3) the Customs Act. Dried...
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...1. Coffee 1. Coffee This chapter defines coffee according to the H.S. code of the Tariff Schedule (Fig. 1-1), covering green coffee beans, regular coffee, instant coffee, and extracts, etc. Coffee beverages (excluding the products categorized as milk beverages) are discussed in the soft drink chapter instead of this chapter. Fig. 1-1: Scope of coverage for coffee in this chapter Item name Green coffee beans Regular coffee Instant coffee Coffee extracts, essensses Description Seeds prepared by removing the outer and inner skins and pulp from the fruits of coffee tree produce. They are dried in the next processing step. Roasted coffee beans prepared by roasting green coffee beans from coffee tree fruits. This category also includes coffee products prepared by grinding these roasted beans. Coffee in soluble powder, granules, and other solid forms prepared by drying extracts of roasted coffee beans. Concentrated extracts of coffee beans, which are used for industrial or processing purposes, such as canned coffee, coffee candies and other confectioneries, etc. H.S. code 0901.11-000 0901.12-000 0901.21-000 0901.22-000 2101.11-210 2101.12-121 2101.11-100 11-290, 12-110 12-122 I. Points to Note in Exports to and Sales in Japan 1. Relevant Laws and Institutional Regulations (1) Regulations and Procedural Requirements for Importing to Japan The importing of coffee is subject primarily to 1) the Plant Protection Act, 2) the Food Sanitation Act, and 3) the Customs Act. Dried...
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...Mountain Coffee Roasters: A Good Cup of Java In the beautiful mountains of Vermont, you will find the home of Green Mountain Coffee Roasters, Inc. (GMCR). In 1981, Robert Stiller, the company founder, while vacationing at a ski resort in Waitsfield, VT found a cup of coffee so good that he bought the company. At the time, Green Mountain was a small, specialty coffee store, and nobody would have imagined that GMCR would become one of the world's leading specialty coffee makers. Today GMCR is recognized for its award-winning coffees, innovative brewing technology, and socially responsible business practices. Reaching this point, however, was not easy and forced GMCR to master their marketing strategies in order to survive the competition. In a time and age when 'environmentally responsible' has become the latest buzzword in social and environmental responsibility is not a trendy marketing move. It is a key concept that has been part of the company's core commitment and values from the time when it was housed in a tiny storefront cafe. In fact, Green Mountain has been named one of the Top 100 Most Socially Conscious Corporations by Business, Inc. for two years running. The company's production plant has been certified organic since 1997, and they remain committed to offering high quality, completely organically grown coffee as a major part of their offerings. In addition to their commitment to organically grown coffee, GMCR supports sustainable coffee production...
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...competition and a SWOT Analysis. Analyzing the information and making recommendations based on the information gathered will show how Starbucks should keep or change their strategic plans. Focusing on principle concepts will systematically uncover what Starbucks has done well in the past, what current areas could be improved, and if the new changes ultimately weaken Starbuck’s market share in the long term or strengthen them. OVERVIEW Starbucks Corporation: Starbucks is constantly reinventing their stores to keep and attract customers. With coffee houses popping up in every nook and cranny, Starbucks has to be fresh and innovative. New technology that allows coffee customers to download the music playing in Starbucks stores to their iPhones is just the start of a wave of options for impulse purchases. Starbucks has roasters and brands of specialty coffee operating in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company also produces and sells bottled frappuccino drinks, double shot latte drinks and a line of ice creams, pastries and breakfast sandwiches. Currently, Starbucks has actively engaged their dairy suppliers to explore a conversion Of all core-dairy products used in United States stores. Together with local dairy...
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...analysing the Fairtrade standards as well as evidence from the literature with regard to the actual impact of the system. The results show that the standards set by Fairtrade are actually fair for their farmers, however a lack of transparency and traceability hinders their proper implementation. Furthermore, Fairtrade standards appear to have even negative effects on farmers that are not part of their organisation caused by rough price competitions as well as on the society as a whole since it hinders an autonomous development of the poor nations. Key Words: Fair Trade, Standards, Developing countries, Livelihood 1 1. Introduction The rising globalization has brought a lot of opportunities to developing countries since their agricultural products can now easily be purchased from all over the world. Due to poor economic, social and political conditions, their producers are however often underpaid and treated badly, while major corporations make the most profit out of it. While moral concerns about the origin of products are arising more and more within the last centuries in the western world, the willingness to pay extra for good worker treatment is of high interest for international trade. With the aim to support the poorest, Fairtrade international has been established in the 1980ies. Their idea is to offer producers a better deal and improved terms of trade by building partnerships between producers in developing countries and consumers in developed countries. The...
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...Starbucks Coffee Company* On an overcast February afternoon in 2000, Starbucks CEO Orin Smith gazed out of his office window in Seattle and contemplated what had just occurred at his company’s annual shareholder meeting. In prior years, the meeting had always been a fun, all-day affair where shareholders from around the country gathered to celebrate the company’s success. This year, however, Smith and other senior Starbucks executives heard an earful from the activist group Global Exchange. A human rights organization dedicated to promoting environmental, political, and social justice around the world, Global Exchange criticized Starbucks for profiting at the farmer’s expense by paying low prices and not buying “fair trade” beans. Not only did the activists disrupt the company’s annual meeting to the point that the convention hall security police asked the activists to leave, but they also threatened a national boycott if the company refused to sell and promote fair trade coffee. Although Smith strongly disagreed with using the shareholders meeting as a public forum, he knew there was a strong likelihood his company could face serious reprisals if it did not address the issues raised by Global Exchange. Fair trade began after World War II as religiously–affiliated, non-profit organizations purchased handmade products for resale from European producers. During the 1970s and 1980s, the concept evolved further into buying crafts from low-income, third-world producers at a “fair” price...
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...Coffee Perhaps the most popular beverage in the world, coffee is brewed and prepared from the roasted seeds of several species of an evergreen shrub of the genus Coffea. It is cultivated in over 70 countries around the world, primarily in equatorial Latin America, South East Asia, and Africa. The beginning of our love affair with coffee can be traced back to the 15th century and most of the world’s population is well aware of its stimulating effect, thanks to its high caffeine content. Today, coffee is much more than just a drink – it’s the world’s second most tradable commodity after oil, and is a fast growing, already multi-billion dollar industry. Traditionally, coffee has always been grown amongst forest trees, in the shade. However, the yield from such a method of cultivation is low, and as a result, increased demand pressurized coffee producers to opt for alternate methods like sun-grown coffee (explained in detail below), which have ended up harming the environment to a great extent, a fact not many coffee lovers around the world are aware of. The burgeoning coffee culture that has sprung up over the last few decades has led to an overwhelming increase in demand for this liquid gold which has had a knock-on effect on the environment, with monoculture and sun grown coffee being the norm now. And given that most coffee growing regions are also home to some of the most delicate ecosystems on earth, the potential for serious damage is great. Sun-Grown Coffee Originating...
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...RESULTS 4 A) CURRENT MARKET SIZE AND STRUCTURE OF FAIR TRADE MARKET 4 B) PAST MARKET EVOLUTION 6 II- THE COMPANY 8 A) COMPANY’S CURRENT SITUATION AND RECENT HISTORY 8 B) MAIN FEATURES OF COMPANY’S OVERALL STRATEGY 8 C) STRATEGIC PLACE OF THE QUINOA IN OVERALL ALTER ECO STRATEGY 10 III- THE COMPETITION 10 A) IDENTIFICATION OF THE MAIN COMPETITORS 10 B) MARKET POSITION OF EACH COMPETITOR 12 IV- CUSTOMERS 12 A) OVERALL CUSTOMER PROFILE 12 B) CUSTOMER MARKET SEGMENTS 15 C) COMPANY BRAND POSITIONING 16 a) Product value offering 16 b) Service value offering 16 c) How does company position its offering in relationship to competitors in order to attract customers? 16 V- MARKETING MIX 17 A) PRODUCT POLICY 17 B) PRICING POLICY 18 C) DISTRIBUTION POLICY 19 D) COMMUNICATION POLICY 20 CONCLUSIONS 22 A) SWOT ANALYSIS 22 B) RECOMMENDATIONS 22 ANNEXES 25 Executive Summary Alter Eco is a Fair trade company which opened it first small store in PARIS in 1999. Few years later, Alter eco has expended it products range including the tea, chocolate, rice, coffee and few others products and developed the food product for retail chains. It first retailing partners is Monoprix. In 2003, one year after the development of the brand, alter eco launched another products as for example olive oil, hearts of palms and quinoa. More than their new products, they sold also their products in another stores as Cora, match and system U. In 2004, after the increases of the company in...
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...Introduction New Harvest Coffee Roaders is a brand which sells coffee. The firm “was founded in 2000 by RikKleinfeldt and Paula Anderson” (Retrieved from http://www.newharvestcoffee.com/about-us/who-we-are). They are located in the downtown of Providence, Rhode Island, in America but work all over the country. The main goal of this company is to offer high quality product produced in a sustainable process. To that, they firstly worked a lot with Fair Trade which was its main supplier. But as it “doesn’t really fulfill [the brand’s] objective” (Contemporary Business, Boone and Kurtz, 2010, p 565), New Harvest stopped working with them. Actually, the main point for New Harvest was they wanted to be able to select their product in view to control the quality of their final offer. And that was impossible by working with Fair Trade. So New Harvest developed its own sourcing way. That impact on many factors about the firm’s product such as the price but also the quality. Those both factors increase. The price due to the fact that suppliers weren’t helped by Fair Trade and the quality because New Harvest started to select and choice the coffee they bought. This way to sourcing the coffee is totally not concerning by the New York Stock Exchange regulation as prices didn’t follow the settlement of the “Big Board”. They are fixed after a negotiation between farmer and New Harvest according to the laws of supply and demand. The coffee is no longer considered as a commodity. New...
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