The Limitations of Fair Trade and Japan’s Role in the Coffee Industry
The Limitations of Fair Trade and Japan’s Role in the Coffee Industry
Author: Masatoshi
Writing Workshop I, Sophia University
Publication permission granted in August 2025
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“The rich get richer, and the poor get poorer.” This quote reflects the structural inequalities in the global coffee industry. While mainstream approaches, particularly Fair Trade have been implemented, structural inequalities remain deeply entrenched. For example, this year, Brazilian workers sued a Starbucks supplier over “slavery-like conditions,” including a nearly 16-year-old boy who was forced to work unpaid from 5:30 a.m. to 6 p.m. under the scorching sun, with only a 20-minute lunch break (Rogero). While some may argue that Fair Trade has sufficiently addressed global inequalities, the persistent structural issues and recent labor abuses show that it falls short, making it imperative for countries like Japan to adopt alternative solutions.
To begin with, Fair Trade has been promoted since the 1960s to improve producers’ livelihoods (Sylla 40). However, despite Fair Trade efforts, structural inequalities, including exploitative labor conditions, remain ingrained. For example, between 1995 and 2020, 2,808 people were rescued from slave-like labor in Brazilian coffee plantations with most rescues in the last five years (Oxfam Brasil). This indicates that Fair Trade has failed to address fundamental issues such as poor labor conditions. Moreover, the limitations of Fair Trade have been critically examined by Senegalese economist Ndongo Samba Sylla. According to him, one reason Fair Trade has failed to resolve inequalities is that Fair Trade certifications are not sufficiently issued in countries that are heavily dependent on coffee exports (Sylla 132). For example, in Ethiopia, where coffee exports accounted for 34 percent of export revenue, only 3 Fair Trade certifications were issued. In contrast, Peru, where coffee made up less than 2 percent of export revenue, received 57 certifications (Sylla 133). Given these circumstances, what alternative solutions can Japan, the fourth largest coffee consumer worldwide (World Population Review, Coffee Consumption by Country), adopt to address the ongoing inequalities?
As a viable solution, the Japanese government should increase investment in producing countries by supporting coffee processing technologies and transport infrastructure. Regarding technological assistance, this is imperative because it enables producers to add value directly and certify quality, allowing them to sell at higher prices (Oxfam 48). This allows producers to earn higher incomes, making it easier for them to escape exploitative working conditions. In fact, considering these advantages, the Japanese government provided farmers in Nepal with an agricultural processing center in 2022 (Embassy of Japan in Nepal).
Moreover, the investment in infrastructure is essential because inadequate road infrastructure raises transportation costs, thereby imposing a substantial burden on producers. Notably, even in Colombia, the world’s fourth-largest coffee producer (World Population Review, Coffee Producing Countries), coffee beans have been transported through remote areas without adequate roads, which significantly raises logistics costs for producers (Lerner et al. 9). Transporting coffee within Colombia is more expensive than importing it from countries like China (Lerner et al. 10). Undoubtedly, to further promote investment, it is vital that individuals speak out on social media, which now serve as a cornerstone for national policies.
Some may argue that the Japanese government support fosters dependency rather than promoting their self-reliance. They may believe that foreign aid makes farmers reliant on continued assistance instead of building their own capacities. However, this concern overlooks the potential of well-designed government support. When the government investment focuses on capacity building, it enables farmers to become more independent eventually. For example, in a JICA-supported project with the Maya Vinic coffee cooperative in Mexico, the project provided technical training and assistance in coffee roasting and cafe management (Ministry of Foreign Affairs of Japan). As a result, the farmers acquired the skills necessary to process and market their coffee independently, eventually opening a cafe that served their local community. This case demonstrates that well-designed government support does not lead to dependence but rather fosters lasting independence.
In conclusion, Fair Trade has shown limitations, and structural inequalities remain deeply entrenched. As alternative solutions, the Japanese government should increase its investment in producing countries through technological assistance and infrastructure development. Undoubtedly, citizens must make their voices heard on social media to encourage additional investment. Instead of a structure where “the rich get richer and the poor get poorer,” we should collectively strive for a structure where “both the rich and the poor can prosper.”
(696 words)
Works Cited:
“Coffee Consumption by Country 2025.” World Population Review, worldpopulationreview.com/country-rankings/coffee-consumption-by-country. Accessed 13 July 2025.
“Coffee Producing Countries 2025.” World Population Review, worldpopulationreview.com/country-rankings/coffee-producing-countries. Accessed 13 July 2025.
Ferroni, Gustavo, et al. Coffee Stain: Coffee Workers in the State of Minas Gerais, Brazil and Supermarkets’ Corporate Social Responsibility. Oxfam Brasil, July 2021, pp.18, www.oxfam.org.br/justica-rural-e-desenvolvimento/por-tras-do-preco/mancha-de-cafe/. Accessed 13 July 2025.
“Japan Hands Over the Agricultural Processing Center for Coffee Beans in Kavrepalanchok District (September 5, 2022).” Embassy of Japan in Nepal, www.np.emb-japan.go.jp/itpr_ja/11_000001_00786.html. Accessed 13 July 2025.
Lerner, Daniel Grandisky, et al. “When Unfair Trade Is Also at Home: The Economic Sustainability of Coffee Farms.” MDPI, vol.13, no.3, 2021, pp.9-10, www.mdpi.com/2071-1050/13/3/1072. Accessed 13 July 2025.
Ministry of Foreign Affairs of Japan. “An Indigenous Union Makes Inroads into Coffee Industry – JICA Partnership Program and a Café in Mexico.” Japan’s Official Development Assistance White Paper 2013, www.mofa.go.jp/policy/oda/white/2013/html/column/column19.html. Accessed 13 July 2025.
Rogero, Tiago. “‘Morally repugnant’: Brazilian workers sue coffee supplier to Starbucks over ‘slavery like conditions’. ” The Guardian, 24 Apr. 2025, www.theguardian.com/world/2025/apr/24/starbucks-brazil-coffee-forced-labour. Accessed 13 July 2025.
Sylla, Ndongo Samba. The Fair Trade Scandal: Marketing Poverty to Benefit the Rich. Pluto Press, 2014, pp. 40, 132-133.