Fair Trade Coffee - ASOBAGRI Cooperative in Guatemala and Nelligan Coffee in Quebec

In January 2007, Daniel Berthiaume, president of Transit, a fair trade coffee social entreprise in Quebec, visited our partner ASOBAGRI in Guatemala, in a volunteer assignment with Uniterra. Follow the Path of Fair Trade coffee in Guatemala with him.

''The Asobagre Producers Cooperative,which groups together 829 coffee growers, has been
in existence since 1986. The average size of a coffeegrower’splot is 1.5 hectares (one hectare = 2.47 acres).For the past 10 years or so the cooperative has been supportedby the CECI (international education and cooperation centre). It’s managed by a dynamic and well-trained groupand now 100% of its coffee is organic Fair Trade Certified. In addition to guaranteeing members a minimum price,selling Fair Trade coffeeenables the Cooperativeto invest in a training andeducation programmefor its members. This year 71 of them willtake advantage of the programme at Barilla.

One of the problems facing the Cooperative is thepresence of private buyerscollectively referred to as coyotes. They travelthe length and breadth ofthe region soliciting Co-op members. Though members areobliged to sell their produce to the Cooperative, many of them nevertheless choose to sell to the coyotes, who arefinanced by big buyers and can pay up front. The coyotes also peg their prices to those offered by the Co-op. Whenthe difference between the market price and the price ofFair Trade coffee shrinks, the competition becomes fierceand the Co-op loses large quantities of coffee to the coyotes,which can endanger its ability to honour its commitmentsto its clients. This phenomenon is so extensive that the Cooperatives cannot even apply the usual sanction– expulsion – for those who flout their obligations. In someyears the number of wayward growers is so large thatexpulsion would cut too deeply into Co-op membership.Despite this problem, the Co-op has become a vital institutionin the region, and an essential tool for the peasantswho have in the past been kept on the sidelines.Sales of Fair Trade coffeemake it possible to invest intraining and education.''