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CLAC Coffee Network Round Table
Following their 2008 regional gathering in Managua, the Coordinator of Small-Scale Producer from Latin America (CLAC) hosted a gathering of their Coffee Network to discuss some of the important issues facing Fair Trade. Cooperative Coffees was among the invited importers participating in this August 29 Round Table.
The CLAC’s roots go back to 1996 when it’s predecessor, the CLA was founded. By 2004, CLA was established as a legal entity, incorporating a variety of small-scale farmer representations and products such as honey, plantain, cocoa, juice, fruit, etc. At present day, CLAC is comprised of twelve different product networks including, of course, coffee. Each network functions autonomously of the CLAC but meet regularly and coordinate with the Regulatory Council. Together, they discuss and determine the regulations and functioning of Fair Trade of each product network. They also exchange their experiences and ideas about quality control, commercialization, and certification processes of their products. CLAC is constantly looking for and analyzing potential alternative markets. |  |
The Coffee Network currently counts a membership of some 155 coffee producer organizations in 14 producer countries from Latin America and the Caribbean. Four international buyers and about 15 producer groups -- CC partners CECOSEMAC and CECOCAFEN among them -- were invited August’s Round Table meeting in Nicaragua. The meeting exemplifies CLAC's intention to increase communication between diverse participants all along the Fair Trade path.
"This was a fantastic opportunity for us to hear from cooperative leaders, other Fair Trade importers and representatives from FLO and TransFair USA and to get an overview from CLAC itself about their priorities and concerns within the Fair Trade movement," CoopCoffees Producer Relations Manager Monika Firl says. "We discussed creative proposals around stabilizing supply, pricing options, improving productivity and increasing the producer's voice within Fair Trade."
Following is a glance at some of the topics discussed:
Supply:
Pricing:
The rules around contracts and pricing for Fair Trade were established at a time when market conditions were radically different from the current situation. In 1989 coffee prices were at an all-time low, and remained there for a prolonged period. Under those conditions, writing and negotiating Fair Trade contracts was very simple. But in today's volatile marketplace – NEW mechanisms need to be devised that attempt to minimize risk for both sides. We need to review existing rules in the new context of the market.
Some of the ideas discussed include: setting the base price as a monthly average – calculated from the daily market prices 30 days prior to the BL dates; long-term relationships with stable communication and good differentials, hedging on the NY market.
Producer Voice:
The challenge remains within the Fair Trade system to have the producer voice better represented in the formation of policy and new directions. Some of the ideas being discussed within FLO include – greater representation of producer coops on Directive Boards, decentralization of operations and independent organizational strengthening projects conceived and administered by the CLAC.
"We hope to promote this kind of exchange between producers and buyers at least once or twice per year," said Raul Aguilar, current President of the CLAC. "This is not an exclusive proposal open only to the representatives who are able to be here with us today; rather the idea is bring different points of view to the table as we are able at diverse forums planned throughout the year. This is open to participants all along the production and market channels. This is an example of the "New Model" we are attempting to construct within Fair Trade," he added.
