fair trade research paper
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Fair Trade: The Coffee Industry
Kristen Manning
York University
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Personal perceptions of value help influence the buying behaviour and decisions
of millions of consumer’s worldwide. The consideration of how the product fits in to a
person’s lifestyle often aids in purchase decisions and weighs the factors of price, quality
and social consciousness. “Global public opinion surveys have identified the growing
influence of personal values in purchase behaviour. The most common, relative to the
food and beverage industry, include Fair Trade” (Government of Canada, 2012).
Consumer awareness surrounding the market for fair trade products has grown over the
past decade. According to a study conducted by the Government of Canada (2012),
there have been significant increases in both regular and occasional purchasers of fair
trade products since 2008. As a result, many retailers and suppliers have adopted
polices and practices that protect workers in foreign countries against exploitation and
corruption. However, producers and retailers within the coffee industry have not
embraced this approach. This paper will investigate the reasons behind the absence of
consumer awareness of fair trade coffee and provide insight into the actions required
toward delivering a sustainable future for the industry.
It is important to understand the concept and processes related to fair trade. Fair
trade is defined by the World Fair Trade Organization (2014) as “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, marginalized producers and workers”. Fair trade, as it
relates to the production of coffee beans, is much like many other agricultural and textile
industries. Under fair trade agreements, farmers are offered a minimum price for their
coffee crops, which covers the costs of production, and protects farmers if the market
price of coffee falls below a sustainable level (Fair Trade Canada, 2014). “Theoretically,
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a fair trade farmer never loses, because when the commodity market price is higher
than the fair trade price, the farmer receives the market price, and the farm or co-op still
receives the premium” (LaPorte, 2013). “Fair trade supports farmers and workers in
gaining more from trade and through this they are empowered to control their lives. It
is an alternative trade approach that is based on partnership; one between those who
grow our coffee and those that consume it” (Fair Trade Foundation, n.d). As stated in a
web document published by Fair Trade USA (2015), fair trade consistently offers better
prices for farmers, especially in rural or developing countries, and helps to improve the
business skills necessary to produce high-quality products that can compete in the
global marketplace. Not only does this trade process ensure that the people involved in
the coffee production are being treated and compensated fairly, it encourages
environmental sustainability (Martineau, 2014). Organizations such as Fair Trade
Canada are continuously monitoring and controlling these markets to ensure all coffee
crops are being grown and produced according to a very strict set of standards and
guidelines.
As a global community, each individual has an opportunity to make a positive,
long-lasting change for the many millions of farmers worldwide. However, the true
success of fair trade depends on independent buying agreements and successfully run
organizations that guarantee producers are abiding by the stringent set of guidelines
and principles. The World Fair Trade Organization (2014) has set out a list of ten
principles which fair trade organizations must follow in their “day-to-day work and
carries out monitoring to ensure these principles are upheld”. A reoccurring theme
within the set of principles is to reduce poverty and gain economic sustainability. “The
organization supports marginalized small producers, whether these are independent
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family businesses, or grouped in associations or co-operatives. It seeks to enable them
to move from income insecurity and poverty to economic self-sufficiency and
ownership” (World Fair Trade Organization, 2014). Another top of mind issue covered
within the principles outlined by the World Fair Trade Organization (2014) is the
commitment to non-discrimination, gender equality, freedom of association, and
ensuring absolutely no forced labour or child exploitation occurs. “The organization has
a clear policy to promote gender equality that ensures women as well as men have the
ability to gain access to the resources that they need to be productive and also the ability
to influence the environment that shapes their livelihoods and lives” (World Trade
Organization, 2014). In addition to protecting the health and safety of all farmers,
guaranteeing equal pay and reducing racial, gender and cultural discrimination, the
organization respects the right of all employees to form and join trade unions of their
choice and to bargain collectively (World Fair Trade Organization, 2014). Establishing
fair trade agreements with struggling farmers will improve their livelihood and success,
and with the assistance of the WFTO, members come to a mutual agreement for better
business practices. Having these formal and universal principles, standards, and codes
of conduct, helps support and sustains one of the world’s largest traded commodities.
For centuries, coffee has been one of the most valuable products in world trade.
Coffee is the world’s second highest traded commodity, behind petroleum, with more
than 25 million coffee farmers in more than 50 producing countries (Global Exchange,
2011). As stated in the Coffee Exporter’s Guide published by the International Trade
Centre (2012), coffee was responsible for trade worth $16.5 billion USD in 2010, with
annual production of 131 million bags (7.8 million tons). “Coffee is indigenous to
Ethiopia, where the beans were first consumed around 500 A.D. Today, the crop is
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enormously valuable to the economies of many developing countries” (Fair Trade
Canada, 2014). In recent years, three countries, Brazil, Vietnam and Columbia, have
produced 55% of the world’s coffee (Jan van Hilten, H., & Fisher, P., 2012). Research has
indicated that Brazil continues to be the world’s number one grower and seller of coffee,
with Vietnam holding the second position after the country rapidly expanded it’s
production in the late 1990’s, bringing Columbia to the third position (Jan van Hilten, H.,
& Fisher, P., 2012).
Coffee is a highly labour intensive crop, farmers risking their livelihood to
produce beans, with very little financial return, keeping growers in a cycle of poverty,
debt and hardship. “Coffee farmers often live in poor rural communities that rely on
coffee harvesting as their primary source of income” (World Vision, 2014). Most of the
coffee-dependent farmers reside in the global South, where it is difficult to escape the
cycle of poverty and labor exploitation, especially in producing countries like Vietnam,
Colombia, Indonesia, and Mexico (Fair Trade Canada, 2011). More than 90% of coffee
production takes place in developing countries, with an industry that flourishes off
cheap labour, paying farmers less than 7% of retail value within grocery store supply
outlets (World Vision, 2014). Coffee may be purchased for $3.50 at a local coffee shop,
however farmers may receive as little as 3 cents (World Vision, 2014). Coffee growers
receive less than a decent wage, making it difficult for families to survive and rely on
their crops each year as a source of income. According to a World Vision Campaign web
document, Coffee’s Hidden Kick: Labour Exploitation in the Global Coffee Industry, it was
stated that “lack of price stability for coffee can lead to situations of labour exploitation,
where workers and their families have little choice but to work in exploitative or
dangerous conditions to earn a small income”. It is even more difficult to escape the
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cycle of poverty when “small family farmers grow over 50% of the world’s coffee” (Fair
Trade Canada, 2011). With small, family operated farms occupying half of the world’s
coffee production; there is an even greater need to implement fair trade and better
business practices.
Despite enormous annual consumption, producers continue to suffer due to the
global economic structure of the coffee industry, which exploits cheap foreign labor and
in an effort to keep consumer prices low (Global Exchange, 2011). It is estimated that
coffee consumption has grown by an average of 1.2% annually since the 1980’s (Jan van
Hilten, H., & Fisher, P., 2012). With consumption continuing to rise, more cafes opening
up, to the expanding retail selection, it is particularly difficult to imagine a world without
coffee. Getting a daily dose of caffeine has become a part of millions of people’s daily
routine. According to the International Coffee Organization, coffee is the world’s most
widely traded tropical agricultural commodity, globally the most widely consumed
beverage, accounting for exports worth an estimated US$ 15.4 billion (2010). Annual
coffee consumption is estimated to be around 400 billion cups worldwide, averaging
12 000 cups per second (Fair Trade Canada, 2011). In our nation alone, Canadian coffee
drinkers' drink an average of 2.8 cups of coffee per day (Coffee Association Canada,
2010). Fair Trade Canada (2011), reported two-cup-a-day coffee drinkers will consume
an annual harvest of 18 coffee trees in one calendar year and with coffee plants taking
four years to produce fruit (coffee beans), it makes growers vulnerable to the volatile
market.
Coffee plays an integral role in the global economy due to the millions of jobs it
provides worldwide, from farmers to baristas, ending in the hands of consumers. Coffee
trade accounts for billions of dollars worldwide. According to the Government of
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Canada (2010), coffee imports accounted for $845.3 million in 2009. As such, it is
important to understand the fair trade business practices impacting the coffee industry.
Levels of consumer awareness surrounding the issues of fair trade in such a large and
vital industry need to be evaluated. It is important to understand and become educated
on the current state of consumer awareness and factors that can influence change
amongst our growing population of caffeine lovers.
Most consumers do not consider where their morning cup of freshly brewed
coffee comes from and who grows it. As previous research details, coffee is a large and
vital export for many developing countries, representing the livelihood of millions of
farmers. It is important to understand how coffee growers are being treated and what
consumers can do to help make a change. It would be highly beneficial to see an
increase in consumer awareness regarding the details and implications of fair trade. It
is in the hands of the consumer to help make a change to eliminate labour exploitation.
In order to gain consumer insights on the issues surrounding fair business
practices within the coffee industry, I conducted a survey amongst my peers. The
objective of the survey was to evaluate consumer awareness on the topic of ‘fair trade’
coffee and to measure whether consumers make a conscious effort to purchase coffee
that is ‘fair trade certified’. To comprehensively examine the results of my own survey,
prior published research was used to compare and contrast findings.
The questionnaire was conducted using SurveyMonkey, a web-based survey tool
in which data was collected after sharing the link amongst personal contacts through
Facebook, Twitter and e-mail. Complete details of the survey, including the
questionnaire and a statistical analysis of the responses is included in the Appendix.
Responses from 100 participants were collected and recorded. Basic demographic
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information including gender, age and highest degree of education, was also collected.
The survey respondents skewed toward well educated, female participants with 70%
being female and 66% (of all respondents) having obtained a university degree or
higher. This group would be representative of a high value consumer demographic for
the coffee industry as well as many other consumer categories. The survey also skewed
toward a younger demographic with 80% of participants falling in the 18 – 29 year age
range. The weighting toward this younger demographic is reflective of the individuals I
am connected to through Facebook, Twitter and e-mail. The research group however,
included a full range of age groups (18-60+ years of age) representing a broad age
demographic.
The research questions queried participants about personal coffee consumption.
It was found that almost 60% of survey participants consumed more than one cup of
coffee per day, with an additional 32% classified as “occasional” drinkers, consuming
less than one cup of coffee per day. It is clear that the overwhelming majority (92%) of
Canadians are consumers of coffee, therefore making the issue of fair trade practices
potentially a topic of interest to millions of buyers. These results can be directly
correlated to a study conducted by the Coffee Association of Canada (2010), finding that
65% of Canadians drink coffee on a daily basis. As stated by the Coffee Association of
Canada (2010), in-home continues to be the dominant place for consumption, with
similar findings in my survey. My research found that 52% consumed the majority of
their coffee at home, while 46% of participants reported purchasing their coffee at
either Tim Hortons or Starbucks.
When asked if the term ‘fair trade’ coffee was a familiar concept, 61% answered
affirmatively, indicating that there is a relatively broad awareness of the fair trade
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concept within the test group. High levels of awareness surrounding the concept of fair
trade practices may be due to the level of education amongst participants, in comparison
to the general public; more than 65% of respondents obtain a university degree or
higher. Among those who indicated familiarity and showed an understanding of the fair
trade terminology, 55% of respondents indicated purchasing certified fair trade coffee,
however, only when it is convenient. An alarming number of participants (45%) stated
they do not actively purchase fair trade coffee because the issue does not concern them.
Among the slight majority (61%) of conscious consumers, most notably none of the
participants purchased fair trade coffee every time. Based on my research, only about
30% of Canadians (respondents) take any action in this issue, and even those are only
occasionally, when it is convenient. There in lies one of the problems. Consumers are
really not showing much interest in this issue.
A strong and compelling correlation between my survey and the research
conducted by the Coffee Association of Canada (2010) can be seen in the following two
questions. After giving survey participants, whom had little knowledge on fair trade
practices, the opportunity to read a brief overview of the concept of fair trade, it was
asked if they then would be more likely to purchase coffee that is stamped with the ‘Fair
Trade Certification’. A high percentage of respondents (74%) answered positively
towards purchasing fair trade coffee. A similar response was reported when asked if
participants would change their buying behaviour to support fair trade practices as it
relates to coffee. Survey results reported roughly 30% of the study group stating that
they will not change their buying behaviour to help support fair trade practices; this
issue does not appear to concern them. However, much like the positive results found in
my survey, “awareness and purchase of cause-related coffee continues to increase
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among coffee drinkers. There continues to be a better conversion from awareness to
purchase Fair Trade coffee than any other cause-related coffee, including organically
grown” (Coffee Association of Canada, 2010). While the research indicates there is an
interest in this subject, consumers have not been driven to change their buying
behaviour.
The question still lingers as to why more consumers are not purchasing certified
fair trade coffee either at the grocery store or picking up a latte on their way to work. As
reported by the Government of Canada (2012), a major barrier for consumers
purchasing fair trade coffee was the limited selection amongst retail outlets and sheer
availability and lack of awareness within cafes and coffee shops. “Canadians expressed
interest in having fair trade products more widely available and showed particular
interest in seeing fair trade offered in restaurants and discount stores” (Government of
Canada, 2012). For the consumers who had no concern or regard to purchasing fair
trade coffee due to a perception of an “increase in price and low quality coffee”, the
World Fair Trade Organization published an article that repudiated those myths.
Most Fair Trade products are competitively priced in relation to their conventional counterparts. Fair Trade Organizations work directly with producers, cutting out middlemen, so they can keep products affordable for consumers and return a greater percentage of the price to the growers.Fair Trade Organizations continuously work to improve quality and consistency. Through direct and long-term relationships, producers and Fair Trade Organizations understand consumer needs and create high quality products. Fair traders have received awards at the International Cup of Excellence and Roaster of the Year competitions (World Fair Trade Organization, 2014).
Fair Trade USA (2015) also published an article stating the quality of fair trade coffee
remains high and prices are competitive with other roasts on the market. Consumers
who believe they are paying a premium for certified fair trade coffee at a retail outlet,
are in fact misinformed. When purchasing a product, like a bag of coffee in the grocery
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store, the fair trade logo indicates that the beans have been produced by small-scale
farmer organizations or plantations that meet social, economic and environmental
standards (Fair Trade Foundation, n.d.). Every purchase stamped with the certification
ensures fair trade standards were followed and met regulations. With each purchase,
the farmer receives payment of the fair trade ‘minimum price’ and an additional fair
trade premium to invest in business or community projects, such as investment into
education, transportation, health care, and sanitation (Fair Trade Foundation, n.d.). In an
article, The Impact of Fair Trade Certification for Coffee Farmers in Peru, published in the
Journal of World Development, concluded that fair trade farmers were also found
successful in expanding their production, “experienced greater satisfaction with the
prices obtained for their crop, and reached improvements in food consumption and
living conditions that resulted in a significant drop in child mortality” (pg. 570). Ruben
and Fort (2009) opined, “fair trade can be said to have accomplished its goal of
improving the returns to small producers and positively affecting the quality of life” (pg.
572). With the tremendous amount of literature published detailing the positive effects
of fair trade business practices, it is a wonder as to why these practices have not become
mainstream within this industry.
Coffee can most certainly be described as the number one drink of choice, with so
many varying flavors, styles and broad distribution. With more than half of the
Canadian population characterized as ‘coffee drinkers’, further research is needed to
determine why consumer awareness and availability of fair trade coffee is relatively low.
Instead of continuing with a downward spiral of cheap labour and exploiting farmers,
the movement of fair trade needs to become more apparent within our society and
global economy.
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After conducting research, comparing results to previous studies, and reviewing
existing literature, it appears consumer awareness of fair trade practices within the
coffee industry is relatively low due to lack of media attention and concern. Further;
consumer buying behaviour is not being influenced sufficiently to create a positive
movement toward fair trade practices. Consumers are not currently compelled to
change their buying behaviour to support fair trade and labour practices. However,
consumer awareness is not absent. At a point in time, this was true for the athletic wear
and apparel industry. Corporations drastically altered their practices and buying
behaviour has been forever changed.
Poor working conditions and exploitation has been known for centuries.
Companies moving offshore to keep labour costs low while reaping the benefits of
successful consumer markets is not a new concept in our global economy. Almost
everyone can recall the Nike controversy that made headlines across our nation. As
stated by Matt Wilsey and Scott Lichtig in an article published by Stanford University,
“no corporation has come under as much criticism as the culture icon of Nike. It was
illustrated that conditions were sub-par in several critical areas of Nike’s factories
overseas and minimal standards needed to be reached” (“The Nike Controversy”, n.d). In
a journal article written by Professor Debora Spar, the corporation had been plagued by
a series of labor incidents and public relations nightmares in the 1980’s and 1990’s:
“underage workers in Indonesian plants, allegations of coerced overtime in China, and
dangerous working conditions in Vietnam” (Harvard Business School, 2002). Much of
these reports were confined to labour activist circles but in the late 1990’s, labour
conditions hit mainstream and received harsh media attention (Spar, 2002). Also noted
in the article published by the Harvard School of Business “stories of reported abuse at
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Nike plants had been carried in publications such as Time and Business Week and
students from major universities such as Duke and Brown had organized boycotts of
Nike products” (Spar, 2002). Debates of labour practices and the unforgiving reports of
exploitation amongst several producing countries had the media and millions of people
attacking Nike, resulting in significant negative commentary within the mainstream
media. As reported by Wilsey and Lichtig in the article, The Nike Controversy, Nike had
“single handedly lowered the human rights standards for the sole purpose of
maximizing profits”. With Nike having such a profound impact on the business world
and global consumer economy, it was crucial that this company make a pivotal change to
improve human rights and establish concrete labour standards. For decades leading up
to the labour exploitation allegations, Nike dominated the footwear and apparel
industry, making it a crucial move to immediately change the way this multimillion
dollar company conducted business practices in offshore factories. Nike could not
afford for their name to be tainted even further; in addition to selling athletic wear, Nike
sells their image. “For Nike to have its image associated with sweatshops in Asia was
more than an embarrassment, the revelations threatened sales. Sales were dropping
and Nike was being portrayed in the media as a company who was willing to exploit
workers and deprive them of the basic wage needed to sustain themselves in an effort to
expand profits” (Wilsey, & Lichtig, n.d).
Due to media reports and social activism, Nike was forced to change their
business practices immediately. Policies, standards and codes of conduct, which were
implemented in all factories, eliminated child or forced labour, poor working conditions,
illegal wages and discrimination.
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Horror exposes, media blasts of labour exploitation, and anti-sweatshop
campaigns proved to make one of the biggest changes with worker’s rights, impacting
one of the world’s largest brands and the iconic ‘swoosh’ trademark. The corporate
culture of the sportswear industry was forever changed.
Coffee farmers are being treated much like workers in sweatshops. Poor working
conditions, discrimination, and little compensation for their crops, makes it hard to rise
above poverty and economic hardship. However, unlike the significant awareness
generated on the topic of labour exploitation at Nike factories, there is a very limited
amount of material that details the poor and negative working conditions for coffee
farmers in the global south. There has never been a worldwide media campaign
surrounding the issues of labour exploitation within the coffee industry. No media
expose has been published with nearly the same magnitude that erupted in the wake of
labour and human rights standards being abused within the sporting goods industry.
Consumer awareness continues to be relatively low surrounding the issues of
exploitation within the coffee industry. Negative media attention has not been in the
front lines of the coffee industry, in fact, based on survey results and prior literature,
consumers are not aware of the poor working conditions for many millions of coffee
growers. Campaigns and boycotts against the retailers who continue to exploit farmers
and choose not to purchase certified fair trade coffee, could potentially make a
compelling change within this ever-growing industry. Raising awareness is the key to
success. Foundations, such as Fair Trade Canada, should endeavor to engage the media
in exposing exploitation stories about the plight of farmers, much like what was
uncovered with the Nike factory workers. Associations supporting Fair Trade practices
might also consider publicly identifying the leading retailers, within the market of both
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coffee shops and products sold within grocery stores. These companies would be
making a positive contribution to changing labour practices by demonstrating and
engaging in marketing campaigns around their commitment to selling only fair trade
coffee. This movement could improve consumer perceptions of their brand and lead to
a competitive advantage.
Major media attention is needed to change the paradigm; consumers need to
become aware of the harsh reality happening in producing countries. The media,
campaigners and social activists targeted Nike because it was one of the world’s best
selling brands. Coffee is the worlds best selling beverage and the second largest
commodity worldwide but nothing as profound has occurred within this growing
industry. Fair trade practices have not been implemented across the coffee industry
because of the fear of lost profits; however, poor business practices can greatly affect
sales and hinder company reputation.
A comprehensive effort by the relevant Fair Trade Organizations aimed at driving
increased media attention is required. A successful campaign would trigger consumer
activism and government action, paving the way for long-term sustainability within the
coffee industry.
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References
Coffee Association of Canada. (2010). Retrieved from http://www.coffeeassoc.com/coffeeincanada.htm
Fair Trade Canada. (2014). Retrieved from http://fairtrade.ca/
Farm Gate Coffee. (2014). Retrieved from https://www.sweetmarias.com/farmgatecoffee.php
Fair Trade Foundation. (n.d.). Retrieved from http://www.fairtrade.org.uk/en
Fair Trade International. (2011). Retrieved from http://www.fairtrade.net/
Fair Trade USA. (2015). Retrieved from http://fairtradeusa.org
Global Exchange. (2011). Coffee FAQ. Retrieved February 2, 2015, from http://www.globalexchange.org/fairtrade/coffee/faq
Government of Canada. Agriculture and Agri-Food Canada. (October 2010). The Canadian Coffee Industry [Ottawa]. Retrieved from http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-product-sector/processed-food-and-beverages/the-canadian-coffee-industry/?id=1172237152079
Government Of Canada. International Markets Bureau. (April 2012). Socially Conscious Consumer Trends, Fair Trade [Ottawa]. Retrieved from http://www.ats-sea.agr.gc.ca/inter/6153-eng.htm
International Coffee Organization. (n.d.). World Coffee Trade. Retrieved February 3, 2015, from http://www.ico.org/trade_e.asp?section=About_Coffee
Jan van Hilten, H., & Fisher, P. (2012). International Trade Centre. The Coffee Exporter's Guide, (Third Edition). Retrieved February 2, 2015, from http://www.intracen.org
LaPorte, N. (2013, March 16). Coffee’s Economics, Rewritten by Farmers. New York Times. Retrieved from http://www.nytimes.com/2013/03/17/business/coffees-economics-rewritten-by-farmers.html
Martineau, C. (2014, February 19). What Does 'FairTrade' Coffee Really Mean? Retrieved February 2, 2015, from http://www.foodrepublic.com/2014/02/19/what-does-fair-trade-coffee-really-mean
Ruben, R., & Fort, R. (2009). The Impact of Fair Trade Certification for Coffee Farmers in Peru. World Development, 570-582.
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Spar, D. (2002). Hitting the Wall: Nike and International Labor Practices. Harvard Business School. Retrieved from http://ardiansyahzein.com/SEMESTER%204/ICA/COMPETING%20CASE/Hiiting%20the%20wal%20-%20nike%20and%20international%20labor%20practices.pdf
Wilsey, M., & Lichtig, S. (n.d). The Nike Controversy. Retrieved from https://web.stanford.edu/class/e297c/trade_environment/wheeling/hnike.html
World Fair Trade Organization (2014). Retrieved from http://www.wfto.com/
World Vision (2014). Coffee’s Hidden Kick: Labour Exploitation in the Global Coffee Industry. Retrieved from http://campaign.worldvision.com.au/wp-content/uploads/2014/03/7280_DTL_Factsheet_Coffee_Web_Single.pdf
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Appendix
Survey: “Wanted: Causal Coffee Drinkers or Caffeine Addicts”Sample size: 100 participants Method: The questionnaire was conducted using SurveyMonkey, a web-based survey tool in which data was collected after sharing the link amongst peers through Facebook, Twitter and e-mail.
1. Are you male or female? a. Maleb. Female
32%
68%
Male Female
2. Age a. <18b. 18-29c. 30-44d. 45-59e. >60
80%
13%
6%
1%
<1818-2930-4445-59>60
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3. What is the highest level of education you have completed?a. High school diplomab. College diplomac. University degreed. Post graduate degree
12%
22%
52%
14%
High School Diploma
College Diploma
University Degree
Post Graduate Degree
4. Do you drink coffee on a regular basis?a. One or more cups a dayb. Less than a cup a dayc. Never
58%32%
10%
One or more cups/day
Less than a cup/day
Never
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5. Where do you consume the majority of your coffee?a. Tim Hortonsb. Starbucks c. Home d. Other, please specify
29%
17%
52%
2%
Tim HortonsStarbucks Home Other
After gathering all responses through the online survey, it was discovered that a couple of individuals sought out their own coffee suppliers (response to Question #5); not name brand labels such as Starbucks, Tim Hortons, Nestle, etc. A participant in the survey left the name of the company they purchase their coffee beans from. The company, Sweet Maria’s Home Roasting Coffee, is an online source for consumers to purchase Green Organic coffee from several different regions. The established business implemented a direct trade buying process called Farm Gate Coffee, which negotiates the price of coffee right at the “farm gate” (Farm Gate Coffee, 2014). After speaking to a company representative, Farm Gate pricing guarantees 50% higher than fair trade minimums, often reaching almost 100% more than that of fair trade prices.
6. Have you heard of the term ‘fair trade’ coffee?a. Yes b. No
61%
39%
Yes No
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7. If you answered ‘yes’ to Question #6, do you actively purchase coffee under fair trade certifications?
a. Yes, all of the timeb. Sometimes, only when it is convenient c. Never, this issue does not concern me
55%
45%Yes, all of the time
Sometimes, only when convenient
Never, issue doesn't concern me
8. If you answered ‘yes’ to Question #6, where did you originally hear about fair trade coffee?
a. Tim Hortonsb. Starbucks c. School or workd. News or media
2%
10%
45%
43%Tim HortonsStarbucksSchool/WorkNews/Media
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9. If you answered 'no' to Question #6; please read the definition and answer the following question. The term fair trade refers to better business practices between coffee farmers, traders and buyers. As it stands right now, coffee farmers are struggling in many producing countries; getting paid next to nothing for their crops. To put this in perspective, on average, farmers receive $1 per pound of coffee. Coffee shops throughout North America serve 30-40 cups per pound of coffee. This equates to roughly $100/pound going into the retailer's pocket. From when the farmer sells their coffee beans, to when we drink our cup of coffee, the cost has risen 100 times that of the original price. Fair trade organizations create trading partnerships that seek greater equity; to ensure the farmers are being compensated with fair wages and proper working conditions. After reading a brief overview of the concept of fair trade, would you be more likely to purchase coffee that is stamped with the 'Fair Trade Certification'?
a. Yesb. No
74%
26%
Yes No
10. After hearing more about this issue, will you change your buying behaviour as it relates to coffee?
a. Yes, I want to help promote fair trade practices b. No, this issue doesn’t concern me
71%
29%
Yes No
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