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Fair Trade vs Free Trade

Trade issues on the front page? From World Trade Organization meetings to NAFTA to International Monetary Fund policies, international trade receives a surprising amount of attention these days. Likewise, the founders of Cooperative Coffees carefully addressed our trade practices in our Articles of Incorporation and in our everyday operating policies. We are committed to fair trade, rather than free trade practices. Free trade can be summarized as the elimination of trade rules in favor of allowing the open, free market to determine who will succeed. Results? With no rules, the poor and disenfranchised often get left behind.

In contrast, Cooperative Coffees adopted self-imposed standards by which we conduct our business with small farmers. Sometimes a few rules are a good thing. Why did we do this? We purposely source our coffee from the little guys and we recognize that many of these partner producers are inherently disadvantaged when operating in an open market. They often do not have access to capital and basic market information. And export channels within their countries are often designed to make it extremely difficult for the producer to directly market their product - forcing them to deal with one or more middlemen. Acknowledging these difficult circumstances, Cooperative Coffees circumvents traditional trade routes and develops direct relationships with producers based on fairness and an open exchange of information.

Several fair trade organizations such as TransFair USA and the Fair Trade Federation are working hard to promote and expand the consumer market for fairly traded products. All participants in the fair trade movement, including Cooperative Coffees, adopt a code of trade practices similar to those summarized on the following page.

Fair Trade Principles

INSURE FAIR WAGES - Producers are paid fairly for their products or paid a fair wage for their work. Sometimes called a living wage, it should at least cover basic needs, including food, shelter, education and health care for their families.

SUPPORT COOPERATIVE WORKPLACES - Cooperatives and producer associations provide a healthy alternative to plantations, large-scale manufacturing and sweatshops conditions.

PROMOTE CONSUMER EDUCATION - Purchasing fairly traded products supports a system of living wages and healthy working conditions. By defining fair trade and conducting business in a manner that respects workers' rights and the environment, the fair trade movement strives to educate consumers about the often hidden human costs of their "bargains." By providing information about producers' history, culture and living conditions, fair traders enhance cross-cultural understanding and respect between consumers and communities in the developing world.

ENCORAGE ENVIRONMENTAL SUSTAINABILITY - Encourage producers to engage in environmentally friendly practices, such as organic farming and the maintenance of shade trees, which manage and use local resources sustainably.

PROVIDE FINANCIAL AND TECHNICAL SUPPORT - Small-scale farmers and artisans in the developing countries lack access to affordable financing, impeding their profitability. When requested, fair traders provide financial assistance either through direct loans, prepayment or by linking producers with sources of financing. They also often provide other critical technical assistance and support such as market information, product feedback and training in financial management. Fair traders establish long-term relationships with their producers and help them adapt production for changing trends.

RESPECT CULTURAL IDENTITY - Encourage the production of products which respect the producers' cultural traditions and the preservation of their cultural identity.

Cooperative Coffees

725 Spring Street
Americus, Georgia 31709 USA
Phone (912) 924-2468
Fax (912) 924-6250
www.cooperativecoffees.com

We invite inquires and are actively
recruiting additional coffee roasters
who share our mission.

Cooperative Coffee

GREEN COFFEES FROM
SMALL FARMER COOPERATIVES

Fair Trade and Organic

Cooperative Coffees,Inc