Good to the last drop

I am going to make this short. The first wave were post-War War II people who industrialized coffee, bringing us low-quality coffee in a can. Folgers. Maxwell House.

Beginning in the late 1960s and early 1970s, the second wave reacted against factory-made coffee and reintroduced ideas about locally roasted, high-quality coffee available in small shops. Interestingly, Starbucks started as a second-wave company, and then grew into a megalith. Starbucks created the market that enabled the third-wave guys to thrive. Now, however, Starbucks is copying third-wave marketing strategies, selling itself as a farmer-driven company.

After the story on office coffee, I wrote a piece on young coffee entrepreneurs and their impact on the specialty coffee industry for the New York Times. All the experts I interviewed named Peter, Geoff and Duane as the most talented, or among the most talented, young specialty guys in the industry, and the coffees they roasted topped all the "best coffee" lists, so I called them up.

One thing led to another, and I wound up traveling with Peter Giuliano and Geoff Watts to Nicaragua on yet another coffee story for the New York Times. Peter and Geoff's passion for, knowledge of and eloquence about coffee blew me away. Duane is a more elusive person than Peter or Geoff. I didn't travel with him, but I did spend close to a week visiting Stumptown in Portland, [Ore.].

The answer is yes and no, or no and yes, or jeez, can we talk about something else?

Fair Trade is probably the most contentious subject in the world of specialty coffee. Not because its goals are disputed but because the debate has been ugly and those who question how the Fair Trade program operates have been accused by Fair Trade advocates of Bhopal-style corporate crimes against humanity.

The irony is that, as a social justice program, Fair Trade ain't that great. To participate in Fair Trade programs, coffee farmers and coffee roasters both pay pretty significant fees. For example, TransFair USA, the American Fair Trade organization, collects a licensing fee of around 10 cents a pound for every Fair Trade coffee sold by participating roasters here in the United States. On the other end of the production chain, coffee-growing cooperatives pay between $2,000 and $4,000 a year to be certified Fair Trade by FLO, the international Fair Trade group.

In exchange for these fees, FLO guarantees coffee cooperatives a minimum price for their green or unroasted coffee of $1.21 a pound -- $1.41 if the coffee is certified organic. These minimums have not increased in 10 years, although they will inch up next year. Cooperatives also received a "social premium" of 10 cents a pound to invest in a community project such as building a school or medical clinic. In addition to setting payment standards, Fair Trade also certifies that living and health standards on coffee farms meet certain minimal standards. The Fair Trade designation does not address issues of coffee quality.

For much of 2008, commodities prices have been rising and the C-market price for coffee has surpassed the Fair Trade minimum. Bubbles have a way of popping, however, and coffee prices have a way of crashing precipitously, causing tremendous suffering. In the book I quote Rick Peyser, director of social advocacy for Green Mountain Coffee in Vermont. Rick sits on the FLO board and he says you have to think of Fair Trade as a kind of insurance policy for farmers that protects them when coffee prices plummet as they periodically do.

And the truth of the matter? Well, as I say, when it comes to Fair Trade the answer is yes, no and maybe.

I agree with Michael Pollan, who came to the conclusion at the end of "The Omnivore's Dilemma" that the thing to do is buy local. And, I would add, buy delicious -- meaning that high quality which takes an effort to achieve should be rewarded.

Coffee, of course, doesn't grow locally. More and more, however, it is roasted locally. So if you want to make sure that you are buying coffee that rewards farmers fairly, I would say get to know your local roasters. And you don't have to pay a fortune, by the way. In fact, you can purchase a great pound of coffee from which you can brew 30 or 40 mugs of coffee for, say, $13 or $14 a pound. Skip Starbucks for three days and you can afford to buy some of the world's best coffee. Compare that to a bottle of wine that two people polish off in an evening!

To the degree that specialty coffee is a high-end culinary product, McDonald's is more or less irrelevant. I can't imagine a consumer being split between buying coffee at a high-end cafe selling Stumptown's or Intelligentsia's or Counter Culture's coffee and McDonald's.

Who might be hurt by McDonald's foray into what I would call "alleged specialty coffee" is Starbucks. You'll notice, however, that Starbucks is working very hard these days to regain its reputation as the purveyor of super-high-quality coffee.

Next page: Panama's sex queen of a coffee, and why you need a burr grinder