The truth is, we make global decisions every day. When we drive our cars, we change the climate of Mongolia. When we throw away an old computer, we could impact the environmental health of a third world neighborhood. And when we choose which bananas, chocolate, or tea we’re purchasing (whether online or in a grocery store), we’re making decisions that affect the livelihood of families all around the world. This is often an unsettling realization for us, and as person who cares, it’s probably unsettling for you, too. But as transparency in business grows, we can begin to understand just how each swipe of our credit card changes the world – and a great place to start learning is by understanding Fair Trade certification.

Fair Trade Certification: Just the Facts

What all Fair Trade certification systems have in common is that the farmer groups earn a fair price for their product (which is often above market price). They also enjoy freedom of association, safe working conditions, and a living wage.  To allow these producers to be competitive in the global marketplace, efforts are made for importers to purchase directly from the producers in order to cut out middlemen, and support the development of their business. Genetically modified organisms (GMOs) are disallowed in most Fair Trade initiatives (and always disallowed in certified organic products), and pesticides and fertilizers are prohibited if found to be unsafe for workers. For more information on these standards, be sure to check out an article we wrote during last year’s Fair Trade Month, “8 Things You Need to Know About Fair Trade.”

Over the last 20 years, we’ve witnessed Fair Trade products expand from specialty retail ‘world shops’ to the shelves of major chain grocery stores and mainstream cafes. In that timeframe, the Fair Trade movement has gone from the fringe of conscious consumerism, to nearly a household name. In fact, from just 2008 to 2009, the sale of Fair Trade certified products grew an incredible 15%! These products are now being produced in 58 countries by 827 organizations, making up 20-50 percent of the market share in products like coffee and chocolate (Source: FairTrade.net). To learn more about the development of Arbor Teas’ Fair Trade tea suppliers, check out our Fair Trade Tea Growers page.

Looking Forward: The Future of Fair Trade

Will we see a time when Fair Trade’s market share approaches 100 percent? The increasing global transparency suggests that this is almost becoming fathomable. Tools like the internet allow a consumer to track down exactly where the product in question is coming from, quickly explore the environmental and labor standards in the producing country, and make a decision about whether or not they want to participate in that economy. But this relies on two things: (1) a transparent supply chain, and (2) consumer education.

In most cases, producing goods sustainably costs more money – plain and simple. Without consumer education, could we reasonably expect a customer to purchase a more costly item simply because of a symbol on its packaging? For instance, when Wal-Mart introduced Marine Stewardship Council (MSC) certified fish in 2006, they found themselves unable to set a premium price on these products – their customers simply ignored the labeling they didn’t understand, and would almost always choose the cheaper product (Source: The Greening of Wal-Mart, Stanford Graduate School of Business).

But how do we, as a society, educate consumers? Let everyone fend for themselves, decoding the myriad symbols we encounter in the grocery store? In many mainstream stores, you probably couldn’t even find an employee that could confidently define many of these. And keep in mind, not everyone will have the access or skills to find this information online. Consequently, we think that consumer education should be a fundamental part of our academic upbringing. Educators teach students about the workings of their government so that we can be thoughtful, engaged citizens – why not explore the realities of our global economy so that we can all be thoughtful, engaged consumers?

If consumers demand information on where their products are coming from, and make purchasing decisions based on this information (or lack thereof), businesses will accommodate. The truth is that in an educated market, it’s competitive to be sustainable and transparent. Choosing to work exclusively with fair, sustainable suppliers might be expensive, but when consumers understand that purchasing decisions are ethical decisions, not doing so becomes a competitive disadvantage. If we can present this view to young people as they are just beginning to make their own choices about how to spend their money, we could transform the entire way this country (perhaps the world) does business – in just one generation.

Looking to the future, we‘re hopeful that both the demand for, and positive impact of, Fair Trade tea (and other Fair Trade products) will continue to grow. We very proud to offer a catalog of 56 Fair Trade Certified Teas, and are grateful for the growing number of customers (like you!) who care as much about Fair Trade as we do!

The Oothu Singampatti Tea Estates cover the rolling hills of Tirunelveli in the Nilgiris district of southern India. The group of estates are surrounded by the tropical evergreen forests of the Kalakkad and Mundanthurai Tiger Reserve.  Situated at the southern end of the Western Ghat mountain range, the Oothu Tea Garden is surrounded on all sides by rainforest that hosts a rich diversity of unique wildlife. Jungle corridors among the tea fields have been carefully preserved in order to maintain this rare natural ecosystem. A pioneer in sustainable tea production, Oothu was the first tea garden in India to adopt biodynamic principles and among the first in the country to become certified organic. Fair Trade Certified since 1995, Oothu Singampatti continues to make a significant social impact on the community

The Fair Trade price has enabled workers at Singampatti Group to establish various programs, including:

1)    Education — The Oothu Singampatti Estates provide scholarships, focusing on deserving children and those from the most impoverished families within the organization.

2)    Health — Health programs, implemented with Fair Trade revenue, contribute to primary care and also allow for specialized treatment that was previously unavailable to estate families. Additionally, life insurance now covers all workers and their families, and funeral expenses are provided.

“Fair Trade has reduced my burden by providing me the finances, which help me put my son in special care. I am thankful to the consumers who pay the extra premium, which reaches people like me and makes a difference.”  — Sita, Oothu worker with a son diagnosed with cerebral palsy

1. Two primary organizations are responsible for operating the Fair Trade program in America.  The first, Fairtrade Labelling Organizations International (FLO), provides the international oversight for Fair Trade efforts across the globe.  FLO is responsible for establishing the internationally-recognized Fair Trade standards, and then certifying those producers who operate in accordance with them.
2. The primary components of FLO’s Fair Trade standards are (excerpted from TransFair’s website):
   -  Fair price: Democratically organized farmer groups receive a guaranteed minimum floor price and an additional premium for certified organic products. Farmer organizations are also eligible for pre-harvest credit.
   -  Fair labor conditions: Workers on Fair Trade farms enjoy freedom of association, safe working conditions, and living wages. Forced child labor is strictly prohibited.
   -  Direct trade: With Fair Trade, importers purchase from Fair Trade producer groups as directly as possible, eliminating unnecessary middlemen and empowering farmers to develop the business capacity necessary to compete in the global marketplace.
   -  Democratic and transparent organizations: Fair Trade farmers and farm workers decide democratically how to invest Fair Trade revenues.
   -  Community development: Fair Trade farmers and farm workers invest Fair Trade premiums in social and business development projects like scholarship programs, quality improvement trainings, and organic certification.
   -  Environmental sustainability: Harmful agrochemicals and GMOs are strictly prohibited in favor of environmentally sustainable farming methods that protect farmers’ health and preserve valuable ecosystems for future generations.

   Together, these standards intend to make sure that farmers and workers in developing countries receive compensation and benefits that are commensurate with the market value of the products they produce, and that they are provided a safe and just work environment.

3. The primary way Fair Trade products are tracked and identified in the marketplace is through the use of the Fair Trade logo.  Only those products that have been made by certified producers in accordance with FLO’s Fair Trade standards, and then sold by appropriately licensed sellers (see below), can bear the Fair Trade logo.
4. The second organization responsible for running the Fair Trade program in America is TransFair USA.  TransFair is primarily responsible for tracking the purchase and sale (within the United States) of products made by Fair Trade Certified producers abroad.  They are the sole organization in the USA that licenses wholesalers and retailers to legitimately use the Fair Trade logo (one of 20 member-organizations of FLO around the world).
5. In addition to being able to yield a higher market rate for their products, Fair Trade Certified producers benefit from the Fair Trade program by receiving a premium that is assessed on every pound of Fair Trade Certified product purchased by importers/resellers.  This money goes directly back to the producers, who (as mentioned above) democratically decide how it is to be invested in social welfare programs (health care, education, infrastructure, etc.) benefitting their community.
6. On the international side, FLO inspects Fair Trade producers on an annual basis, not only to check work conditions, wages, use of Fair Trade premiums and the like, but also to make sure they have a viable plan for selling their product.
7. On the domestic side, TransFair performs quarterly audits of all companies licensed to sell Fair Trade Certified products.  These audits ensure that the quantities of all Fair Trade imports into the USA are properly accounted for through the whole supply chain.  In doing so, they aim to prevent the fraudulent sale of non-Fair Trade products as “Fair Trade,” and to make certain that producers receive all Fair Trade premiums that they are due.
8. The Fair Trade program only applies to the developing portions of the world.  Because Japan’s existing trade practices are considered fair, no products from that country are included in the Fair Trade program.  This is noteworthy to tea lovers because so many tea varieties hail from Japan.  Japanese teas bearing the Fair Trade logo are either erroneous-labeled or fraudulent.

If this seems like a lot of red tape, rigmarole and paper chasing to bring socially-responsible goods to market, you’re right.  It’s not easy, and that’s one of Fair Trade’s biggest criticisms.  That said, there is no other program around that can fairly and accurately account for goods made in a socially-responsible fashion all the way from the field or factory to a shopping cart half-way around the world.  It’s an evolving process, one that we hope will continue to make an bigger and bigger impact on the lives of those who make so many marvelous – even essential – products for the rest of the world to enjoy… like Fair Trade Certified tea!

As many of you may know, October is Fair Trade Month.  With another October fast approaching, we wanted to share a few ways that you can help promote Fair Trade in your community.  Of course, we strongly encourage you to buy Fair Trade tea, but Fair Trade matters across a wide variety of products, including coffee, chocolate, vanilla, sugar, honey, fruit, rice and wine.  Here are a few ideas to get you started:

• Learn more about Fair Trade and how it makes a difference.
• Vote with your dollar – buy Fair Trade Certified goods wherever possible.
• Ask retailers in your community to carry Fair Trade Certified products.
• Introduce new audiences to Fair Trade Certified products – at home, at work, in school, on campus, at your place of worship, etc.
• Give Fair Trade Certified products as gifts.
• Get involved in Fair Trade – host a party, volunteer, donate, etc.

Knowing that Fair Trade helps improve the standard of living for millions across the globe makes Fair Trade Month an easy holiday to celebrate!

Traditionally, the Fair Trade system operates by rewarding certified producers with a premium that is collected in addition to the wholesale cost of their products.  These premiums are then reinvested into the producer’s communities for their social and/or environmental betterment.  However, beginning in February of this year, FLO International will (for the first time ever) introduce minimum prices for certain Fair Trade Certified teas.

A Diverse Tea Marketplace

Tea is one of Fair Trade’s most diverse products, with grades and types of tea ranging from the fine-grade mass-market teas that are used in tea-bags to high quality specialty leaf and organic teas (such as those featured by www.ArborTeas.com). Market prices for tea vary tremendously, not just according to grade and type, but also depending on what production methods are used and the geographical origin of the tea.

A Challenging Environment for the Tea Producer

FLO’s decision to introduce minimum prices reflects concerns over downward trends in global market prices for tea over the past five years. Faced with global oversupply of tea, producers in many regions are now selling much of their product at below the cost of production. FLO anticipates that the new pricing system for tea will help tea farmers around the world to meet their costs of production, and to support the sustainable development of their business, even if market prices fall still further.

How will this affect Arbor Teas customers?

The new minimum prices for tea will apply only to those teas which are typically sold at lower prices, where minimum prices can make a real difference to producers’ income security. Specifically, FLO is introducing prices only for non-organic teas produced using the crush-tear-curl production method, and for certain lower grades of tea produced using the orthodox production method.  As Arbor Teas customers are aware, we carry only high-quality, organic leaf-grade teas, produced in the orthodox fashion, so the minimum prices that are currently being established by will have no direct effect on our customers.  It is possible, however, that FLO will introduce minimum prices for specialty organic and leaf-grade teas in the future, so stay tuned for further updates on this topic.

The minimum prices being established by FLO International will vary according to the country and region of origin, reflecting the diversity in cost of production and market prices for different origins.  As with all Fair Trade Certified products, it is expected that many such teas will continue to trade at market prices considerably above the new minimum price levels.

According to a recent article in Sri Lanka’s English-language newpaper, The Sunday Times, that country’s Fair Trade Certified tea producers have continued to receive growing demand for their products, particularly in Western Europe. We are very proud to carry an exceptional example of that country’s organic and Fair Trade Certified tea production – our Greenwood Estate Ceylon Black Tea.

Happily, this growth in demand is echoed throughout much of the Fair Trade Certified tea marketplace.  According to the Sunday Times, 82 producer organizations in 13 countries reported selling a total of 2,614 tons of Fair Trade Certified tea in 2005, which grew by 48% to 3886 tons in 2006.  Very encouraging growth, indeed!

Arbor Teas is, of course, thrilled to be part of this exciting (and very satisfying) dimension of the tea industry — not just for what it means for our bottom line, but what it means for our industry and those who produce these wonderful teas.

Within the tea industry, there seem to be two distinct perspectives on the subject of ethically-produced tea. These are represented by the two most visible labeling programs in the marketplace — TransFair USA’s Fair Trade Certified® program and the Ethical Tea Partnership.
What is Fair Trade Certified® Tea?
Fair Trade Certified® teas are those which have been certified by TransFair USA to meet the international Fair Trade standards established by Fair Trade Labeling Organizations International (FLO). These standards include:

• Fair prices,
• Fair labor conditions,
• Direct trade,
• Democratic and transparent organizations,
• Community development, and,
• Environmental sustainability.

These Fair Trade standards empower farmers and farm workers to lift themselves out of poverty by developing the business skills necessary to compete in the global marketplace. By guaranteeing minimum floor prices and social premiums, Fair Trade enables producers to invest in their farms and communities and protect the environment.

What is the Ethical Tea Partnership?
As I understand it, the Ethical Tea Partnership (ETP) is an alliance of tea packing companies that have joined together to monitor the conditions of tea production around the world, encouraging improvement where needed. At the core of this program is an independent

monitoring network that checks living and working standards on tea estates. Six key areas of estate life are reviewed, including:

• Employment (including minimum age and wage levels),
• Education,
• Maternity,
• Health & Safety,
• Housing, and,
• some areas of Basic Rights.

Unlike Fair Trade, ETP monitoring is free to all estates who take part. ETP is unique in this respect.

So Why Has ArborTeas.com Chosen to Support Fair Trade?
While there are definite pros and cons to both programs, there are certain things about the Fair Trade Certified® program that (in our minds, at least) tip the scales in its favor. Specifically:

1. Buying a product under the ETP Label does not guarantee that the product in question was produced in compliance with a particular set of ethical standards — just that the producers have committed to “work towards improvement” in the ETP’s focus areas.
2. No hard and fast compliance milestones or thresholds must be met for a product to be included in the ETP program. As I understand it, a producer could participate indefinitely without ever achieving full compliance with a recognized set of ethical standards.
3. ETP does not address environmental sustainability.
4. While ETP’s monitoring is undertaken by an independent third-party, the program as a whole is driven/managed by members of the tea-packing industry, not an independent third-party such as TransFair USA.

As avid tea drinkers, and folks who make their living in the tea industry, we feel a deep responsibility to support a higher standard of living and a sustainable future for the individuals who bring us these fantastic products. We also believe that consumers deserve access to products which they can be assured have met definite ethical production standards. So, until it can be demonstrated to us that ETP-labeled products explicitly comply with a set of acceptable standards, we will continue to whole-heartedly support TransFair USA and their Fair Trade Certified® program.