24 November 2006

Christmas -- Fair Trade Spices

There is a growing market for fair trade products like chocolate, bananas, and coffee. But, there are so many other products where the fair trade principle applies.

Steenbergs is one way that you can obtain fairtrade vanilla, white and black pepper, cloves and nutmeg for all of your Xmas cooking.

Pepper In India is traditionally grown in smallholdings of 5 hectares. Many growers grow pepper intercropped with coconut, coffee and other spices, so annual production is around 1 tonne of black pepper per family. These small producers face fluctuating pepper prices which have been on a downward trend in recent years – black pepper now is worth less than in 1990. This is a result of pricing pressure, coupled with increased exports from countries like Vietnam, which has grown its share of global trade from 0% to 37% since 1990. Low prices have resulted in lack of investment as growers sell their crop below production cost. We estimate that the cost of sustainable production for black pepper is £1,645 where the market price is £1,115 per tonne. Constant pricing pressure is destroying these fragile rural economies, reducing environmental standards, health and education in parts of Kerala and elsewhere.


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