Paul Rice

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Paul Rice
EducationYale (BA, Economics and Political Science) | University of California, Berkeley - Haas School of Business (MBA)
Occupation(s) Founder and CEO of Fair Trade USA
HonoursSocial Capitalist of the Year, Fast Company (2005-2008)

Paul Rice is the Founder & CEO of Fair Trade USA, the leading third-party certifier of Fair Trade products in North America. Since launching Fair Trade USA (formally called TransFair) in 1998, Rice has brought Fair Trade into the mainstream and built a movement to expand its impact. [1] He has challenged and collaborated with hundreds of companies to rework their global supply chains to obtain high-quality products that support community development and environmental protection. [2]

Contents

His work as a social entrepreneur has helped over 1 million farming and producing families to receive a fair price for their crops and to compete in the global marketplace through direct, long-term contracts with international buyers. [3] With thousands of certified products found in 200,000 retail locations today, [4] Fair Trade USA's Fair Trade Certified label is considered to be the leading mark of sustainability and responsible sourcing in North America. [5] [6]

Rice has been criticized in recent years for his decision to resign Fair Trade USA's membership from Fairtrade Labeling Organization (FLO), the international fair trade labeling organization. [7] While he argues that the split was necessary for expansion, some critics worry that scaling Fair Trade will dilute its impact. Rice is committed to expanding Fair Trade to impoverished laborers, whether or not they work on a cooperative through his “Fair Trade for All” platform. [8]

Early life and education

Rice was raised in Dallas and Austin, Texas, the son of a single mother. [9] He graduated from St. Mark's School of Texas.

He was an entrepreneurial boy, selling newspapers, mowing lawns, and gardening in his community. [10] By saving his earnings, Rice was able to self-finance most of his college tuition at Yale University, where he enrolled in 1978.

At Yale, Rice studied Political Science and Economics, which sparked an interest in the issues of global hunger, poverty, and underdevelopment, particularly as they related to rural farming. [11] At nineteen, he took a year off from school and went to China to learn about land reform and the peasants' struggle to organize cooperatives. This experience cemented his decision to enter the field of international development after graduating in 1983. [11] Upon graduation, he spent over a decade working with agricultural farmers in Nicaragua, before returning to the US for a graduate degree. In 1990 Paul founded PRODECOOP, which became one of the largest organic coffee exporters in the world. [12] After training the next CEO, Paul returned to the states in 1994, to earn a Master's of Business Administration at the UC Berkeley Haas School of Business. [13] [14] During his time there he developed the Business plan for TransFair or otherwise today known as Fair Trade USA. [15]

Career

Rural Development Specialist

After college, Rice bought a one-way ticket to Nicaragua to work with smallholder farmers, thinking he would stay only one year. [16] As it turned out, Nicaragua became home to Rice for 11 years. There, he became a specialist in rural economic and cooperative development. [17] Traveling throughout the country, he helped hundreds of smallholder farmers organize cooperatives. [11]

PRODECOOP

In 1990, still in Nicaragua, Rice founded PRODECOOP, the country's first Fair Trade, organic coffee export cooperative. Within three years, the coop grew from 24 families to over 3,000. [18] Through the cooperative, these farmers got direct access to the global market and received higher compensation for their work. The additional income enabled them to improve the quality of life in their entire community. [8] Throughout this experience, Rice became convinced that the market—rather than foreign aid—was the most sustainable mode of poverty alleviation. [19]

After serving as CEO of PRODECOOP for four years, Rice transitioned leadership to a native woman who was the first female to lead a coffee company in the male-dominated Nicaraguan coffee industry. [11] PRODECOOP is now led by General Manager Merling Preza who is an advocate for the cooperative model, fair trade and sustainability for coffee families around the world. [20]

Subsequently, Rice served as strategy consultant and development advisor to 22 cooperative enterprises throughout Latin America and Asia, helping them become more competitive, democratic, and self-reliant. [21] His years of first-hand experience abroad in the areas of global supply chain transparency, social auditing, sustainable agriculture, and cooperative enterprise development led him to found Fair Trade USA.

Fair Trade USA

After 11 years working with cooperatives, Rice returned to the US to expand the market for Fair Trade goods. The products would be certified as Fair Trade by his start-up, Fair Trade USA. Rice opened the first "national headquarters”—a one-room office in a converted warehouse in downtown Oakland—in late 1998. [10] He started off working with just a handful of mission-driven coffee companies. After gaining traction with coffee, Rice expanded the certification across new product categories, including fresh produce, spices, and cotton. [8]

Since launching the Fair Trade Certified™ label in 1998, Paul has helped establish Fair Trade as one of the fastest-growing segments of the food and apparel industries. To date, Fair Trade USA has partnered with over 1,500 leading companies, including Green Mountain, Nespresso, Whole Foods, Costco, Sam's Club, Walmart, Kroger, and Target. Fair Trade USA now certifies coffee, tea, cocoa, sugar, coconut, fresh produce, and seafood. Recently, through groundbreaking partnerships with Patagonia, Athleta, Williams-Sonoma and J. Crew, Fair Trade has begun certifying apparel and home goods, improving the lives of factory workers.

In 2022, consumer recognition of the Fair Trade Certified label hit 65%. To date, Fair Trade USA and its partners have generated over $1 billion in additional income for farmers and workers in 51 countries, allowing them to care for the environment and steadily improve their livelihoods. By offering these individuals the opportunity to earn a livable wage, Fair Trade USA has helps them fund a range of community development projects, including water sanitation, health, and education programs. [22]

In 2011, Rice came under fire for his decision to resign Fair Trade USA's membership from the Fair Trade Labeling Organization (FLO), the international fair trade labeling organization. [7] While FLO only certifies small cooperatives (in coffee), he wanted to expand certification to farm workers and independent smallholders that were previously excluded from Fair Trade. The move was controversial, given Fair Trade's tradition of working with small scale farmers. After the split, Fair Trade USA launched the “Fair Trade of All” campaign, an agenda for doubling the impact of Fair Trade and including more people in its benefits. [8]

Honors and awards

He has received numerous honors and awards for his pioneering work as a social entrepreneur in the Fair Trade movement, including:

Speaking

Rice has become a distinguished speaker and leader in economic development, social enterprise, and corporate responsibility. Some of his engagements include:

See also

Related Research Articles

<span class="mw-page-title-main">Fair trade</span> Sustainable and equitable trade

Fair trade is a term for an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. The fair trade movement combines the payment of higher prices to exporters with improved social and environmental standards. The movement focuses in particular on commodities, or products that are typically exported from developing countries to developed countries but is also used in domestic markets, most notably for handicrafts, coffee, cocoa, wine, sugar, fruit, flowers and gold.

<span class="mw-page-title-main">The Fairtrade Foundation</span> Charity promoting and licensing Fairtrade certification in the United Kingdom

The Fairtrade Foundation is a charity based in the United Kingdom that aims to help disadvantaged producers in developing countries by tackling injustice in conventional trade, in particular by promoting and licensing the Fairtrade Mark, a guarantee that products retailed in the UK have been produced in accordance with internationally agreed Fairtrade standards. The foundation is the British member of FLO International, which unites FLO-CERT, 25 National Fairtrade Organisations and 3 Producer Networks across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.

<span class="mw-page-title-main">Demeter International</span> Certification organization for biodynamic agriculture

The Biodynamic Federation Demeter International is the largest certification organization for biodynamic agriculture Its name is a reference to Demeter, the Greek goddess of grain and fertility. It is a non-profit umbrella organisation with 46 members organisations in 36 countries, and over participating 6,500 farmers around the world, representing both the global biodynamic movement and the Demeter certified biodynamic farms. The organization incorporates 19 certifying Demeter organizations, and the rest of the certification is done by the international certification committee.

<span class="mw-page-title-main">Rainforest Alliance</span> International sustainable agriculture organization

The Rainforest Alliance is an international non-governmental organization (NGO) with staff in more than 20 countries and operations in more than 70 countries. It was founded in 1987 by Daniel Katz, an American environmental activist, who serves as the chair of the board of directors. The NGO states that its mission is "to create a more sustainable world by using social and market forces to protect nature and improve the lives of farmers and forest communities." Its work includes the provision of an environmental certification for sustainability in agriculture. In parallel to its certification program, the Rainforest Alliance develops and implements long-term conservation and community development programs in a number of critically important tropical landscapes where commodity production threatens ecosystem health and the well-being of rural communities.

<span class="mw-page-title-main">International Fairtrade Certification Mark</span> Certification mark

The 'International Fairtrede Certification Mark is an independent certification mark used in over 69 countries. It appears on products as an independent guarantee that a product has been produced according to Fairtrade political standards.

<span class="mw-page-title-main">Fair Trade USA</span>

Fair Trade USA, formerly "TransFair USA", is a 501(c)(3) non-profit organization that sets standards, certifies, and labels products that promote sustainable livelihoods for farmers and workers and protect the environment.

<span class="mw-page-title-main">Fairtrade Canada</span> National non-profit certification and public education organization

Fairtrade Canada, formerly TransFair Canada, is a national non-profit certification and public education organization promoting Fairtrade certified products in Canada to improve the livelihood of developing world farmers and workers. It is the Canadian member of FLO International, which unites 24 fair trade producer and certification initiatives across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.

The fair trade movement has undergone several important changes like the operation for ten thousand villages to open their businesses since early days following World War II. Fair trade, first seen as a form of charity advocated by religious organizations, has radically changed in structure, philosophy and approach. The past fifty years have witnessed massive changes in the diversity of fair trade proponents, the products traded and their distribution networks.

The fair trade debate concerns the ethics and economic implications of fair trade, a term for an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. The benefits of fair trade for farmers and workers can vary considerably and the social transformation impacts also vary around the world. However the main concerns from critics is that fair trade may give an unfair advantage to some producers over others.

<span class="mw-page-title-main">Adina World Beat Beverages</span>

Adina World Beat Beverages is a manufacturer of coffee, tea and juice drinks based in San Francisco, California. The company was founded in 2004 by Magatte Wade, Greg Steltenpohl and Dominique Leveuf. Adina is led by "an international team of entrepreneurs from Odwalla, SoBe and Peet's Coffee" and has worked to preserve traditional beverage recipes from around the world from "being replaced by cola drinks distributed by multinational corporations".

<span class="mw-page-title-main">Fair trade coffee</span> Coffee certified as produced to fair trade standards

Fair trade coffee is coffee that is certified as having been produced to fair trade standards by fair trade organizations, which create trading partnerships that are based on dialogue, transparency and respect, with the goal of achieving greater equity in international trade. These partnerships contribute to sustainable development by offering better trading conditions to coffee bean farmers. Fair trade organizations support producers and sustainable environmental farming practices and prohibit child labor or forced labor.

Direct trade is a form of sourcing practiced by certain coffee roasters, chocolate makers, tea sellers, gemologists and more who build direct relationships with the farmers, artisanal miners and processors who sell their products. There is no single set of direct trade standards, and specific trade practices vary as a reflection of business and ethical priorities of the roaster or maker. Generally speaking, however, direct trade practitioners view their model as one of mutually-beneficial and transparent trade relationships.

Komaza is a distributed forestry company that partners with smallholder farmers in Kenya to plant trees for sale as sustainable wood products. They provide farmers with the support across the entire value chain, from supplying seedlings and other planting inputs to establish tree farms, up to harvesting, processing and selling mature trees to local markets. Komaza has planted nearly 7,000 tree farms and currently employs over 100 full-time staff.

David Green is an American social entrepreneur. His work has focused on making technology and health care services more accessible and sustainable.

<span class="mw-page-title-main">Fair trade certification</span> Product certification within the market-based movement fair trade

A fair trade certification is a product certification within the market-based movement of fair trade. The most widely used fair trade certification is FLO International's, the International Fairtrade Certification Mark, used in Europe, Africa, Asia, Australia and New Zealand. Fair Trade Certified Mark is the North American equivalent of the International Fairtrade Certification Mark. As of January 2011, there were more than 1,000 companies certified by FLO International's certification and a further 1,000 or so certified by other ethical and fairtrade certification schemes around the world.

Sustainable coffee is a coffee that is grown and marketed for its sustainability. This includes coffee certified as organic, fair trade, and Rainforest Alliance. Coffee has a number of classifications used to determine the participation of growers in various combinations of social, environmental, and economic standards. Coffees fitting such categories and that are independently certified or verified by an accredited third party have been collectively termed "sustainable coffees". This term has entered the lexicon and this segment has quickly grown into a multibillion-dollar industry of its own with potentially significant implications for other commodities as demand and awareness expand.

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<span class="mw-page-title-main">Peace Coffee</span>

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The Federación Campesina del Cauca is a non-profit, member-owned federation of coffee grower associations based in the Cauca Department of Colombia. It was found in 1971 as a congress of farmers, but has since formalized into a cooperative serving the interests of 630 coffee farmers from six local sub-groups. The federation was licensed FLO Cert in 2004, and has since acquired certification for producing both conventional and organic coffee.

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