Equal Exchange also offers preharvest loans so farmers don't have to trade against their crops during the season. Last year, director of purchasing Todd Caspersen lent $1 million to farmer co-ops. He says it's not charity, it's competitive thinking. With fair-trade prices set by TransFair, everyone's paying the same price. So who gets the good stuff? "Well," he shrugs, "if you happen to have a quarter-million-dollar loan out to them, you will." Equal Exchange helps its farmers ride out problems too. A few years back, for example, Beth Ann Caspersen sensed a decline in quality from one of its co-ops. Instead of dropping the co-op altogether, she sent a message by cutting the contract 20%. The co-op improved its sorting and processing, and today Equal Exchange imports more of its coffee than ever before.
Competitors have been taking note. Since 1999, Green Mountain, Starbucks, and Procter & Gamble have all dipped their toes in the fair-trade market. Green Mountain does nearly 20% fair trade, the most of the three. This spring, Dunkin' Donuts introduced 100% fair-trade espresso beans. In response to its new competitors, Equal Exchange has offered the same goodwill it extends to its farmer co-ops, promoting their efforts and urging them to do more. When P&G entered the fair-trade market, Equal Exchange challenged its new rival to match its own yearly volume. It's altruistic, but it's also self-interested. Equal Exchange figures its rivals will expand the market for fair-trade coffee.
In the end, the proof is in the cup. Back at Java Monkey, Equal Exchange's largest cafe client, Gallagher says fair trade wasn't the deciding factor in his decision to carry Equal Exchange; Decatur is far from liberal stomping grounds like Berkeley or Ann Arbor, where fair trade is a natural fit. While Gallagher says the mission behind fair trade is important to him personally -- he even joined Equal Exchange for a 12-day trip to Nicaragua a couple of years back -- to the customer, the coffee is usually all that matters. "More than half of our clientele have no idea they're drinking fair-trade coffee," says Gallagher. "For them, it's just about quality."
Lucas Conley is a Fast Company staff writer.
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