Notes:
Up until now we've focused on Fair Trade handicrafts. in the min 1980s popularity for these products began to wane and the Fair Trade movement was in crisis. Today we're going to look at what fueled the second wave of popularity for the Fair Trade movement.
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Equal Exchange:
The middle of the 1980s was a tough period for the Fair Trade movement. Fashion trends changed and the popularity of Fair Trade handicrafts and jewelry was waning. If Fair Trade was to regain momentum, it needed to go in a new direction.
In 1986 Equal Exchange launched the first Fair Trade coffee program in America. Their program was called Cafe Nica, and brought Fairly Traded coffee to the United States from Nicaragua. The focus of the Equal Exchange was to form a private business that would in many ways run like a non profit.
Equal Exchanged faced many problems when starting their company. The biggest was that posed by US Customs officials. There was a US trade embargo against Nicaragua that made it difficult to import the coffee. Equal Exchange wanted to help Nicaraguan farmers who were reliant on exports to survive, and who were suffering because of forces outside of their control. Many of the first shipments of coffee were held by customs, and the founders of Equal Exchange had to rely on lawyers and loopholes (the coffee was technically legal because it was roasted in countries other than Nicaragua) to continue. It took several years of struggles before Equal Exchange was profitable.
Takeaway:
Equal Exchange, through their Cafe Nica program, was able to provide a high quality good that Americans would buy, and do it in a way that subscribed to Fair Trade practices. Coffee was an item used by millions of Americans every day, and something that worked symbolically. For many, Fair Trade coffee symbolized a small change in a daily routine that had a big social impact.
Additional Reading:
http://www.equalexchange.coop/story
http://www.equalexchange.coop/1986
