Archive for the ‘Direct Trade vs. Fair Trade’ Category

Green Festival, San Francisco, Nov. 12-13, 2011

Saturday, November 5th, 2011

About Green Festival

At Green Festival®, a project of Green America and Global Exchange, we’re celebrating what’s working in our communities and around the world – for people, business and the environment.

Think of Green Festival® as a walk through a sustainable community. It begins with finding solutions to help make our lives healthier-socially, economically and environmentally. Individuals, business and community leaders come together to discuss critical issues that impact us at home and abroad. Organizations and businesses showcase programs and products that restore the planet and all that inhabit it. Neighbor-to-neighbor connections are formed and skills are shared to empower people to create positive change in the world.

Join us at the nation’s premier sustainability event, where you will see the best in green. Enjoy more than 125 renowned authors, leaders and educators; great how-to workshops; cutting-edge films; fun activities for kids; organic beer and wine; delicious vegetarian cuisine and diverse live music. Shop in our unique marketplace of more than 300 eco-friendly businesses-everything from all-natural body care products and organic cotton clothing to Fair Trade gifts and beautiful kitchen tiles made from renewable resources.

See the most recent developments in renewable energy and green technology; sample Fair Trade chocolate, tea, coffee and oils (yes, they really do taste better); and learn how to invest in your community, green your home and avoid products made without consideration of the earth or its people.

For more information visit the Green Festival website: www.greenfestivals.com

Direct Trade vs. Fair Trade – Importing Cacao

Thursday, March 4th, 2010

 Shawn Askinosie of Askinosie Chocolate talks about Direct Trade vs. Fair Trade

 Shawn Askinosie with Equadorian Farmers     The following is an excerpt from the FAQ page of Askinosie Chocolate’s website.  Shawn Askinosie, the founder, has traveled extensively in cacao-growing regions and he has a direct relationship with the farmers he purchases cacao from.  I really appreciate his “first-hand” explanation of “direct trade”, and the sharing of his experiences importing cacao into the U.S.  (Shawn is the tall one in the back of the photo.)

I shop fair trade as much as possible. How do you pay your farmers and how do they share in the profits? 
I love the Fair Trade idea.  I believe that we have to be vigilant that Fair Trade does not become a marketing gimmick or reduced to a bumper sticker.  We must ask the questions and dig deeper to find out how the company treats those that supply them raw materials AND how they treat their own employees. Fair Trade has been scrutinized because some question if the money ever finds its way to the farmer in the field and not coop bureaucrats. My chocolate is not “certified” Fair Trade mainly because the farmers I deal with cannot afford the certification and they are very loosely organized. They are very poor. I go way beyond Fair Trade and here is how I do it:

  1. I deal DIRECT with the farmers 100%.  I have a rule that I will not buy beans from farmers I have not met – in person.  This is hard because I travel a lot and while it is fun it’s not always easy.  The travel is not the hard part; it is the complicated nature of importing that I do myself.  I have a local company that handles shipping and customs clearing, but other than that it is all me.  I am the only chocolate factory in the US (that I am aware of) that sources 100% of their beans direct. There may be one other person who does this, but I cannot verify this and he is a much smaller company.  When I go to these origins I see the farms and determine myself the issues that a Fair Trade certifier would look at. The main thing is that I am building relationships with the farmers and their families.  This is hard and takes time, but it is worth it.
  2. I pay far above the Fair Trade market price (which is set above the world market price) for beans.
  3. I have implemented a program called Stake in the OutcomeTM  (a profit sharing program for the farmers) which is described on our website at “The Farmers”.  This guarantees to the farmers open books.  This is not a negotiation tactic to get them to lower the price on the beans; it is in ADDITION to what I pay them for the beans.  I know the name of every farmer who contributed to the crop in both locations.  This is something that I doubt any other chocolate maker in the world can say.  You can’t share with someone if you don’t know their name.  I distributed my first profits in Ecuador in December 2007 and in Mexico in January 2008.  These were, by far, my best days yet in the chocolate business!  They said that nobody had ever come back to thank them, let alone share money with them and show the books.  
  4. Why is Stake in the Outcome important?  This directly affects the quality of the cocoa beans I buy.  It affects quality in a way that Fair Trade never will. One day farmers will give me higher quality beans to my specifications when they see that they will make more money if I make more money.  They will literally share in my success.  I have a very detailed specification now for the beans I buy, but I know that what I buy will be even higher quality than what I have now.  I have done this with my law practice for nearly a decade.  My secretaries, for example, knew the details of our income statement and made more money when I did.  Why should companies in the US buy raw materials, jack up the price, and not share the profits with those who they source from?  My prayer is that one day a small company from another industry will ask me how to implement this model.  If I can inspire even one other company to adopt Stake In the Outcome, then I will have been a success in this business.  I have had the “career” and it is not about that now.  If I was doing this business to get rich I would have stayed in my law practice.  This program will not change the world but it might change the life of a farmer or two or three.