
owned by five main corporations. The dynamic of the coffee
market is beginning to shift though, as consumers begin to
learn about the benefits of various certification programs
such as Fair Trade and Rainforest Alliance.
Along with these new markets come many forms of certification. Certification is raising farming standards, lowering chemical use, and allowing consumers to "vote with their dollars." In the future, certification may play a large role in balancing out the supply chain of the coffee market.
Today, five main corporate giants dominate the world coffee market. This includes Starbucks and the "Big Four", which is comprised of Kraft, Proctor and Gamble, Sara Lee, and Nestle. (Oxfam News, Coffee Companies Under Fire as Millions Face Ruin) Together they buy up over half of the world's coffee supply, and continue to steadily increase their profit margins. At the same time, coffee prices have recently hit a thirty year low. How can this be? Retailers have been using the coffee supply chain to their advantage, taking huge profit cuts while farmers receive grossly low incomes for this valuable cash crop.
Recently attempts have been made to change this, and therefore the dynamics of the coffee market as well. Oxfam has lead campaigns to encourage roasters to pledge to buy a small percentage of their coffee from fair trade supplies. Oxfam and other activist groups have also been spreading knowledge to consumers, in hopes of expanding the fair trade market. By eliminating middlemen through fair trade and fair trade direct, pressuring large roasters, and connecting producers with consumers through use of education and technology, activists have cleared the pathway for a much more balanced coffee market. Sadly, farmers will not see instant benefits, but multiple types of certification have opened up niche markets for dedicated farmers.
The Rainforest Alliance provides farmers with business support, knowledge on sustainable farming practices for resource conservation, and a connection with the consumer. (http://rainforest-alliance.org) A team of Rainforest Alliance experts will pre-assess and then conduct a final assessment on the request of a farmer. There are specific criteria incorporating ecological, economic, and social considerations that farmers must fulfill. Once requirements are met, the farmer will be allowed to display the Rainforest Alliance certification seal. This permits consumers to consciously spend their money, and support environmentally friendly practices.
Like the Rainforest Alliance, the Smithsonian Migratory Bird Center has created a certification program to promote coffee production that is economically, environmentally, and socially responsible. Through research, it has been found that the use of shade trees provides a habitat for many species of birds along with other animals, creates natural mulch, improves soil quality, helps stop soil erosion, protects coffee plants from sun and rain damage, helps with pest control, and reduces the need for chemical fertilizer. (Migratory Bird Center, Smithsonian National Zoological Park) The Smithsonian trains agencies to evaluate farms for certain criteria, and decide if the Smithsonian's Bird Friendly label will appear on the farmer's product. They also certify farms as organic. As of now the Bird Friendly market remains very small.
The United States Department of Agriculture (USDA) uses government-accredited organic certifiers to certify food products as organic. The "USDA Organic" seal is placed on products that are no less than 95 percent organic. They also certify multiple-ingredient foods as organic. This allows consumers to buy healthier products and show their stance on chemical use in farming practices.

Vermont, sell both Fair Trade and certified organic coffees.
Green Mountain Coffee currently donates 5% of its pre-tax
earnings to social and environmental causes.
The growth of certification and therefore many niche markets will depend mostly on the decisions of consumers. More and more shoppers are becoming conscious consumers. Possibility for expansion is present, but it will take time to see if this is just a trend or a lasting change in the way consumers choose to spend their dollars.