2011-09-23

"Fair Trade Label" vs "UTZ Certified"


Stumbled upon the coffee label called "UTZ Certified" in chain stores?
Wonder if it is another type of Fair Trade certification?
In fact, it is a more lenient labelling system.

There are questions if UTZ is protecting the livelihood of small farmers,
not just those of the secondary producers under large corporations
and the large and medium-sized farming estates.

The major difference of 2 labels is that UTZ highlights
the importance of quality control and transparency within the supply chain
while FT label promotes a standard for socially conscious products.

Under UTZ, coffee beans are still subjected to the volatility of market,
meaning there is no minimum buying price for the small producers.
Microfinance and support for poor growers are lacked.

Many environmental requirements are mandatory
in Fair Trade Label but not UTZ certifications.

Trying to covers all aspects of sustainable coffee
—quality, environmental and social,
it remains to be seen whether UTZ successfully achieved these aims.


Source: Tim Fox (2007).
The Coffee System: What Standard, What Means? "Fair Trade" and "UTZ". 
Graduate School of International Relations & Pacific Studies, UC San Diego.
http://irps.ucsd.edu/assets/020/8416.pdf

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