The Chocolate Fudge Cafe

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

      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 Outcome^TM  (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.

   EARTH’S SWEET PLEASURES IS ON A QUEST TO CREATE THOUSANDS OF “FAIR TRADE HOMES” FOR WORLD FAIR TRADE DAY, 2010

EARTH’S SWEET PLEASURES is a part of “Fair Trade My Home,” a grass-roots campaign of fair trade companies, individuals and organizations who are inviting friends and fans to join the fair trade movement and make their home a “Fair Trade Home” in honor of World Fair Trade Day, May 8th, 2010. The goal is to create as many self-declared Fair Trade Home’s as possible by having people submit a photo or video showing which fair trade goods they regularly purchase and use in their home. Submissions are being gathered at www.fairtrademyhome.com  Fair trade is an alternative way of doing trade, where the people producing a product are treated fairly, paid fairly, and are being fair to the environment. A home that is committed to the purchase and use of fair trade goods is a “Fair Trade Home.”  What was started in America by one woman with a vision has become a global movement involving over 60 countries, 1.5 million workers. In America, over 1,500 companies and retailers offer fair trade goods, there are 13 fair trade towns, and over 300 college campuses that support fair trade.  The purpose of Fair Trade My Home is to raise greater awareness of fair trade to the American consumer, so that each person will choose to integrate more fair trade purchases into his or her regular buying habits, and cut down on poverty both in America and around the world.  EARTH’S SWEET PLEASURES not only creates fair trade products/supports fair trade, it is actively encouraging the community to join in making homes fair.

ABOUT WORLD FAIR TRADE DAY - World Fair Trade Day is a global celebration of fair trade and will be held in 2010 on May 8th. In North America, Fair Trade Resource Network is leading the World Fair Trade Day 2010 event with complimentary efforts from the Fair Trade the White House campaign. In 2009, World Fair Trade Day involved 65,020 people at 456 events covered by 101 media stories. www.ftrn.org.

ABOUT FAIR TRADE MY HOME - The theme of Fair Trade My Home is an extension of the Fair Trade the White House campaign, a coalition of fair trade vendors and organizations which are inviting the First Lady to join the fair trade movement and make the White House a “Fair Trade Home.” www.fairtrademyhome.com   www.fairtradewhitehouse.com