Partnering for sustainability: Business–NGO alliances in the coffee industry

Abstract

The movement to promote coffee produced in a sustainable way is one of many efforts aimed at linking social responsibility and market capitalism. In the wake of a worldwide coffee crisis in which prices have fallen to levels that do not support small-scale production or provide living wages for plantation workers, non-profit certifying and labelling organisations are working to develop a market that is sustainable for workers and the environment. They seek to influence cultural and political values in such a way that consumers and corporations in the North will have to respond to them by incorporating the welfare of Southern workers and ecosystems into their purchasing decisions. This paper discusses and evaluates current strategies to link producers and consumers within this movement, all of which involve a great deal of education. It argues that partnerships between businesses and NGOs are essential for broadening the corporate base of the market for fairly traded coffee and promoting norm change among consumers, and discusses the challenges and opportunities that such partnerships create.

Notes

1 I use ‘NGO’ to refer to local, national, and international NGOs.

2 The internationally accepted criteria for Fair Trade coffee are: (1) purchase directly from small farmers organised into democratically managed cooperatives; (2) guarantee a floor price when market prices are low; (3) offer farmers credit (an obligation of the importer); and (4) promote long-term relationships between importers and farmer cooperatives.

3 As stated by the Rainforest Alliance (2003), ‘[t]he certification standards guide farmers toward true sustainable agriculture and give independent auditors a yardstick with which to measure improvements. Farms that meet the standards are awarded the Rainforest Alliance Certified ^TM seal of approval, which is a prestigious badge that can be used to market farm products. This program is unusual in that it includes both social and environmental standards and unique in that it is managed by a coalition of local groups that understand their culture, ecology, farming traditions and governments.’

4 ‘Starbucks exclusive single-origin coffees purchased directly from the source’ (Starbucks Corporation 2003).

5 This, Nestlé spokespeople told interviewers from Oxfam International, is because the company has incurred large fixed costs such as expensive processing plants and manufacturing technology for its instant coffee. When the price of green beans gets too low, it is difficult for Nestlé to compete with companies that have not made such sizeable investments (Gressler and Tickell 2002:27).

6 The Sustainable Agriculture Network (SAN) encompasses more than 750 national and international subscribers and is closely associated with the US Department of Agriculture's Sustainable Agriculture Research and Education (SARE). The network includes producers, members' administrative councils and technical committees, and NGOs throughout the USA that are working to promote sustainable agricultural systems.

7 Some activists are also suspicious of large speciality roasters—let alone the ‘big four’—buying into fair trade. Laure Waridel (2002:105), co-founder of the Canadian NGO Équiterre, remarks that ‘some roasters appear to be using fair trade to shield themselves against criticism from consumers and are making little effort to promote their fair-trade brands. Some appear to have adopted fair-trade coffee in order not to lose customers rather than as a means of assuming their responsibility towards coffee farmers. They talk about it as a new trend, like flavoured coffees. Some retailers show a serious lack of information in answering questions about fair trade’.

Additional information

Notes on contributors

April Linton

April Linton is Assistant Professor of Sociology at the University of California, San Diego. Her work encompasses many aspects of globalisation, including international migration, transnational social movements, and the intersecting effects of policies on trade, development, and the environment.