A staff member of the Diocese of Orlando’s Office of Advocacy and Justice, Liz has been committed to Fair Trade for about two years and often gives Fair Trade chocolate as a gift. She recently got an in-depth exposure to Fair Trade through a retreat sponsored by the Fair Trade Fund. As one of 332 fans of CRS Fair Trade, her pledge to buy a product from one of our CRS Fair Trade partners was randomly selected to win a recycled oil drum sculpture. Congrats Liz and thanks to the hundreds of fans who will fulfill the pledge!

The answer is probably, “it depends on the circumstances”. But, with an industry as infamous for child slavery, trafficking, and forced labor as the cocoa industry how can an external auditing system, like Fair Trade, make that call?

A very troubling documentary from the BBC program, Panorama, reported that in September 2009, Kuapa Kokoo, the Fair Trade cocoa co-operative in Ghana which supplies Divine Chocolate, suspended seven out of 33 of their cocoa farming communities after they were found to be using the worst forms of child labor. After taking steps to address these cases, their Fair Trade certification was re-instated.

Fair Trade advocates claim that this proves the system is working. That, unlike non-certified cocoa which cannot be tracked to a particular farm, the Fair Trade system audits the supply chain, giving us access to the farmer and their methods of production. The Fair Trade Labeling Organization does prohibit child labor. However, they require the members of these producer organizations to be small-scale farmers.  They explain, “The majority of the members of the organization must be smallholders (small-scale farmers) who don’t depend on hired workers all the time, but run their farm mainly by using their own and their family’s labour.”

I know, on the surface this all seems reasonable. If the children are your family, it’s ok, if they’re not, it’s not ok. But can third party verification systems really check everyone’s birth records? Can they be expected to police for child labor?

What I find more promising is Kuapa Kokoo’s recently ratified Policy on Child Labor.   The policy lists some specific actions the cooperative is taking to address the child labor issue among its members; such as, internal control systems to monitor and promote compliance with Fair Trade standards; training and community action planning; a child labor awareness campaign; and a remediation team and rehabilitation program for identified victims.

At a recent Kid’s Camp at Kuapa Kokoo, run in partnership with the NGO Trading Visions, the children at the camp helped define what acceptable work is and what is unacceptable.  The following definitions are taken from Tom Allen’s “Report from a child labour workshop in Ghana.”

• “Child work” is work that is limited to a few hours a day, and supervised by responsible adults. It includes doing household chores, learning your parent’s trade, and working at school under the supervision of teachers (e.g. cleaning and sweeping, or tending the school garden).
• “Child labor” is excessive work, unsupervised work, and work that interferes with education and development or exploits the child.

Rather than focusing on just enforcement, Kuapa Kokoo is attempting to change the culture of their community. It’s important to remember that when the inspectors are away and whether they’re your parent or not, if an adult gives a child work to do, it is expected that they obey. What this type of child labor policy can do is lay out for the adults exactly what ways a child may benefit from attending school and having limited work on the farm, and what are the negative consequences they will face within their own community for choosing to use exploitative child labor.

This community effort to address local child labor seems like the key piece to have in addition to pressure from consumers and cocoa buyers. While I still don’t believe the Fair Trade system can  guarantee there is no child labor involved in Fair Trade chocolate, Fair Trade cooperatives do have a more direct connection to consumers and buyers, and are therefore more likely to address this issue in a responsible manner.

But as the “big” cocoa industry players like Hershey, Nestle and World’s Finest try to find ways to certify that their chocolate is child labor free in accordance with the Harken-Engel protocol we’re once again dealing with the question of how outsiders can distinguish between child labor and child work in the first place. And who will bear the responsibility to do the policing; governments, corporations, exporters? Even with clear standards, is it  possible to know what is happening on the farms that we have no connection to?

The theme of WFTD  is Fair Trade My Home linking our lives to the livelihoods of our brothers and sisters around the world.  Producers need to provide for their households.   Consumers like you have the opportunity to bring Fair Trade food, decorations, jewelry and more into your own home in acts of solidarity shopping.     To Fair Trade Your Home is easy and fun. Our friends at the Fair Trade Resource Network have put together a tool kit of resources and come up with several contests to inspire you.

We here at CRS Fair Trade have a contest of our own: every person who takes the Fair Trade My Home pledge–meaning promises to use one product from a CRS Fair Trade partner in the year 2010–will be entered into a raffle to win Haitian artwork from our Work of Human Hands catalog.

Here’s how to participate:

1) Fill out the pledge form attached and return it to fairtrade “at” crs.org before May 10.  Don’t forget to buy a product for your home from our crafts, coffee, and chocolate partners.   WFTD Pledge Card 2010

2) Plan a Work of Human Hands sale, a Raise Money Right chocolate fundraiser, a Fair Trade coffee tasting or other fun event using CRS Fair Trade partner products.   Encourage attendees to take the Fair Trade My Home pledge and return this downloadable WFTD pledge tally sheet to fairtrade “at” crs.org by May 10.

This day and every day Fair Trade gives us a chance to embrace the principles of Catholic social teaching such as care of god’s creation and working for the common good.  Join us in putting principles into practice.

Sarah, Laura and Elizabeth in Ghana. Photo:DeCarlo/CRS

Apparently Elizabeth Cole is also well known to Tom Gibbons of the  Busted Halo blog, who sent in this appreciation:

Hardly a month goes by without spotting St. Austin’s parishioner Elizabeth Cole in the courtyard selling Fair Trade chocolate.  Needless to say, she is a very popular person… especially around Christmas time.

“I took the ‘Just Faith’ course about four-to-five years ago and I was struck with two things.  The first was that I was coming late in life to looking at issues of poverty and the like through a justice lens, beyond looking at them through charity.  The second was that I did not want my son and grandson to wait until they were in their forties for them to look at things from a justice perspective either.”

So from that learning experience, Elizabeth decided to create a curriculum in order to educate children on issues of justice.  Her angle: retelling the Parable of the Good Samaritan by including Cocoa Farmers in the story.  She pitched the idea to one of the small Christian communities at St. Austin and used them as a beta test; along the way, University of Texas students Sarah Yanes and Laura Duca decided to help out.

The very next year—with the encouragement of Austin Diocesan Director  Barbara Budde—Elizabeth entered her program into a competition CRS Fair Trade sponsored in order to discover the best educational program for kids.  The grand prize was 10 day trip to visit Ghana and the cocoa fields.  When she won the top prize, Elizabeth asked if she could also bring Sarah and Laura; because the prize only allotted for one person to go, both the parish and the Diocese of Austin contributed funds for the students to go.

“Amazing… CRS does an amazing job in Ghana.”  When I asked her what was the most important “take away” from her trip was, she replied, “It’s one thing to see these issues at play on paper, but it’s another thing to see it first hand.”  She said that the experience gave her a great motivator to keep doing more.  “This system [of Fair Trade] really does work.”

Elizabeth’s next stop: Michigan, so that she can be trained to become a CRS Fair Trade Ambassador.  The people here at St. Austin’s are very glad that she is; Christmas is only eight months away.”

Last week it happened. I was talking to a group of Yo Pros in Boston and a hand in the back goes up.  I see the quizzical look, and I start to anticipate.  The earnest woman says something to the effect of, “These Fair Trade principles sound great, but when I am at Trader Joe’s how do I know something is Fair Trade?”    I probably let a little sigh escape, not because the question was inappropriate but because after ten years as a Fair Trader I still don’t have a satisfactory answer.

Sure, I was able to first caution that if she limits her Fair Trade shopping to a grocery store, this conscious consumer will miss out on the work of Fair Trade artisans—just the types of products that helped create the Fair Trade movement through Ten Thousand Villages and SERRV a generation ago.  But that’s not what she wants to know really.  She wants to do the right thing as a shopper, and she’s asking CRS Fair Trade to guide her.

So I whip out my trusty Powerpoint slide on “CRS Fair Trade Standards for Partnerships” and flash two logos on the screen: The Fair Trade Federation (FTF) logo used by North American organizations who qualify as  “fully committed to fair trade.”  

Right next to it, is Fair Trade Certified™ label used by companies in the US on products that meet international fair trade standards.  

I go on to explain that all partners in the CRS Fair Trade network must either be a member of the FTF or have each and every one of their products licensed by TransFair USA.

This leads to a discussion of how CRS Fair Trade believes strongly in “third party verification.”  How in order to promote values such as transparency and accountability, we require all of our partners to prove their commitments to Fair Trade through 100% certification or by meeting all the standards of FTF.  I allow as how this independent verification process is akin to Catholic Relief Services having to meet the 20 charity standards of the Better Business Bureau. Or at the individual level, how all taxpayers have to prove they have paid their fair share of taxes by April 15.

Typically there is a little back and forth about the difference between a Fair Trade company and a Fair Trade product.  About why you don’t see FTF’s labels on products, for example, and how it is that Starbucks can sell the most Fair Trade Certified coffee in the country, but isn’t eligible to be a CRS Fair Trade partner.

So far so good.

But I feel haunted by this question, stalked a bit, if you will, because I know that the FTF and TransFair USA systems aren’t enough.   Over the past year, with current and potential partners, CRS Fair Trade has wrestled with challenges such as:

• Producer organizations practicing direct trade with faith communities based on deep and committed personal relationships.  Who are we to say, for example, that Juan Ana coffee from Guatemala doesn’t embody Fair Trade principles?     But will we do direct traders who are competing in a global and diverse marketplace any favors if we don’t encourage them to prove their practices?  And can direct trade really provide long-term, large-scale solutions to poverty beyond specific person-to-person partnerships?
• Artisan organizations looking for sellers in the United States but lacking the capacity, the experience,  or even geographic location to meet the requirements  of FTF membership and, by extension, participation in the vast US marketplace.   Should we guide artisan groups to global associations such as the World Fair Trade Organization even when we recognize that WFTO itself is strained by capacity concerns?
• US companies embracing new certification approaches such as Fair for Life created by the European-based Institute for Marketecology.  I’ve talked to the folks at IMO and they seem committed to earth and people friendly practices, but should CRS Fair Trade move beyond the traditional vanguards of Fair Trade? How do we conduct due diligence to verify that IMO meets the standards it says it does? On another note, why do we favor fair trade certification in the US over environmental standards such as Rainforest Alliance, when CRS partners with RA and others to help  farmers reach large commercial markets globally?
• Companies claiming to be Fair Trade when they are not.  I was confronted with this today personally.  I was ordering Fair Trade flowers for a special occasion and asked the customer service rep which flowers were Fair Trade and which weren’t.  He apologized but said they don’t sell any Fair Trade anymore because the system is “good for the workers but not so good for businesses. It is very complicated and cuts our profits.”  I asked him why he still has the TransFair logo on his home page, and he said he didn’t…oh, wait, yes he did.  And, sure, he will take down that FAQ section touting the benefits of Fair Trade.  This is where I started to sigh again.  Some companies misuse the label on products, no doubt about it.   By embracing the TransFair label for coffee and chocolate are we, by implication,  giving a “halo” effect to the label in general?   What can we do to help bolster the integrity of TransFair USA, or other leaders like WFTO for that matter, as they play the role of standard setters and certifiers?

Of course, there are many dimensions to these challenges, and the CRS Fair Trade has the privilege of grappling with them in a movement full of trustworthy and tested partners and allies.  I’m not complaining so much as asking for input.  Pick a challenge and comment on it.  Help us know how to help our “followers”, our supporters, and the producers we serve.

If you haven’t noticed yet, we’re focusing on chocolate this month. Whether you gave chocolate as a Valentine’s gift or you gave it up for Lent, chocolate is on a lot of people’s minds this February. When we talk about chocolate, we usually are talking about our chocolate partners, SERRV, who sells Divine Chocolate, and Equal Exchange. Both of these companies are fully-committed to Fair Trade. From our relationship with them we know which cooperatives they source their cocoa from and the relationship they have with their farmer partners and their customers in the U.S.  We’re confident about their operations and we’re confident promoting them.

When you get beyond the CRS Fair Trade world, however, things aren’t always so clear. The overall demand for Fair Trade chocolate is on the rise and that is a good thing.  However, the price of cocoa has rallied and is well-over the Fair Trade guaranteed minimum. For instance, the Fair Trade minimum price for cocoa is $1600/ton + $100 social premium. The current cocoa price has consistently been over $3000/ton. Fair Trade growers are receiving the market price + the $100/ton social premium, so it’s a good time for them.

Photo credit: David Snyder for CRS.

For chocolate makers, companies and consumers, it’s another story. The increasing price of cocoa and cocoa related products like cocoa butter has meant the profit margin for chocolate has dropped across the board. Chocolate companies have had to look for cheaper substitutes for their ingredients, increase chocolate prices and in some cases, decreased the size of their bars. For Fair Trade chocolate companies, many of their ingredients are also Fair Trade and cannot be substituted, nor do they have large profit margins from other products, like Kraft or Nestle may, to help control costs. This means Fair Trade chocolate prices will rise at the same time many Americans are cutting out luxury spending.

With no end of the cocoa rally in sight, it also means there’s little price difference between Fair Trade certified and non-Fair Trade cocoa. While there’s certainly an ethical motivation for mainstream companies to switch to Fair Trade, with the recent price parallels, we have seen a few taking advantage of this opportunity. For instance, last year Cadbury’s in the UK declared they would use Fair Trade cocoa  in their big seller, the Dairy Milk bar, in 5 of their markets. This February, Kraft acquired control of Cadbury’s and has indicated they will keep Cadbury’s Fair Trade commitment for the Dairy Milk bar.  Late last year, Nestle’s also declared their Kit Kat bar in the UK would convert to Fair Trade chocolate.  While much of this is happening in the UK, we shouldn’t be surprised when it trickles over to the U.S.

Photo credit: David Snyder for CRS.

So what will happen when it does? As the Fair Trade chocolate market grows, without a doubt, more cocoa growers will benefit from a Fair Trade price and the social premium. While this is a very good thing, there is some skepticism as to whether or not corporations will offer the same transparency regarding their relationships with cooperatives as Equal Exchange, SERRV and Divine Chocolate do. While CRS Fair Trade would be happy to see more farmers benefiting from Fair Trade terms, we will not partner with a chocolate company that doesn’t purchase all of its cocoa under Fair Trade terms.  We have to ask: What terms is the rest of the cocoa purchased under?

These things are important to us because we want to support “the gold standard” of business, businesses we feel model the principles of Catholic social teaching.  We wonder how will our fully-committed partners fare when they are faced with a Fair Trade Kit Kat bar? Do the differences in models and impacts on companies make a difference to you?  What should the role of CRS Fair Trade be in the Fair Trade chocolate future?

Let us know what your perspectives are.

To see the sale, visit the Equal Exchange Interfaith Program online store.

Photo courtesy of Equal Exchange.

With the school season upon us, CRS Fair Trade offers some ideas for learning more about Fair Trade:

• View a video and download a reflection guide about the coffee farmers of La Fem in Nicaragua.  You’ll hear directly from two cooperative leaders about why Fair Trade is important to them and their families.  These materials are made possible thanks to a partnership between CRS and RENEW International.
• Send student off in style and solidarity with a uniform from Fair Trade Uniforms.  Over the years, students have led the way in confronting sweatshop abuses.  CRS Fair Trade is proud to recommend this  clothing project of the Sisters of the Good Shepherd.
• Raise Money Right because youth fund-raising is about more than just dollars.  With Divine and Equal Exchange Fair Trade chocolate you can earn dollars for your local causes and support  farmers globally.

Whether as consumers here in the States or as members of producer families, children are often the beneficiaries of Fair Trade.   Help your students experience the fun and justice of Fair Trade this school year.

Children of cocoa farmers attend summer camp. Photo by Jackie DeCarlo/CRS

The Catholics Confront Global Poverty initiative helped shape good ideas for celebration through a national webcast on August 25, 2009.   CRS Fair Trade, along with Jill Rauh of the US Conference of Catholic Bishops, grounded the discussion in the call of Catholic social teaching to promoting economic justice.  We then explored what Fair Trade means and the opportunities CRS Fair Trade offers for converting your parish to Fair Trade coffee, Raising Money Right through chocolate, or hosting a community Work of Human Hands crafts sale.

October is a great month to implement or launch Fair Trade activities, so be sure and check out the webcast for organizing ideas.  Also check out our free resources for your community.

Photo by CRS

This group of students and adults–who had used Fair Trade chocolate as a fun, tasty tool for awareness and education back home–were humbled and chastened by the grim tour of a place where human beings had been treated as property, forced in squalid cells while waiting for transport to a life of enslavement.   Even two years after the trip, I recall the empty and shameful feelings that the brief time of glimpsing slave trade relics stirred in me.

I wonder what President Obama’s reactions—both personal and political—will be to his time in Ghana, and I am curious about the response of his hosts.  Apparently the arrival of our first African-American president is being much anticipated by the people of Ghana, who are rolling out quite a welcome mat of festivities.  I also suspect Pope Benedict, who is meeting with Obama before the trip to Africa, is looking forward to their conversation just days after his encyclical on charity and truth has been published.

While I am no expert on diplomatic or theological discussions, based on my time in Ghana and my experience with Fair Trade, I suggest a few passages from Chapter Two of the encyclical to get the conversation between Pope Benedict XVI and President Obama started:

•    In anticipation of Obama’s time in a former British colony: “Paul VI hoped to see the journey towards autonomy [and decolonization] unfold freely and in peace. More than forty years later, we must acknowledge how difficult this journey has been, both because of new forms of colonialism and continued dependence on old and new foreign powers, and because of grave irresponsibility within the very countries that have achieved independence.”
•    Regarding strategies to confront the global economic crisis:  “It is important to distinguish between short- and long-term economic or sociological considerations. Lowering the level of protection accorded to the rights of workers, or abandoning mechanisms of wealth redistribution in order to increase the country’s international competitiveness, hinder the achievement of lasting development. Moreover, the human consequences of current tendencies towards a short-term economy — sometimes very short-term — need to be carefully evaluated. This requires further and deeper reflection on the meaning of the economy and its goals, as well as a profound and far-sighted revision of the current model of development, so as to correct its dysfunctions and deviations.”
•    Learning lessons of development: “The right to food, like the right to water, has an important place within the pursuit of other rights, beginning with the fundamental right to life. It is therefore necessary to cultivate a public conscience that considers food and access to water as universal rights of all human beings, without distinction or discrimination.  It is important, moreover, to emphasize that solidarity with poor countries in the process of development can point towards a solution of the current global crisis, as politicians and directors of international institutions have begun to sense in recent times. Through support for economically poor countries by means of financial plans inspired by solidarity ….not only can true economic growth be generated, but a contribution can be made towards sustaining the productive capacities of rich countries that risk being compromised by the crisis.”