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Fair Trade Coffee
Good for Growers
Fair trade coffee is good, right? Yes! Basically, it circumvents
corporations from leveraging big orders to get the coffee at a low
price that does not benefit the local growers.  With fair trade certified products,
coffee importers buy directly from the growers for a higher price than
standard coffee.
This encourages better working conditions for employees and there is an
economic incentive for producers.
Tips & Tricks
Don't really care about the details, just need some links? Here is the best fair trade coffee
list! That was easy! :) Or jump to Stumptown Coffee.
How Does it Work?
Companies such as TransFair USA offer an independent 3rd party
certification that ensures:
- Coffee importers agree to purchase from the small
farmers included in their Coffee Register.
- Fair trade coffee growers are guaranteed a minimum
"fair trade price" of $1.26/pound FOB for their coffee. If world coffee
price rises above this floor price, fair trade coffee farmers will be
paid a small ($0.05/pound) premium above market price.
- Coffee importers provide a certain amount of credit
to farmers against future sales, helping farmers stay out of debt to
local coffee "coyotes" or middlemen.
- Coffee importers and roasters agree to develop
direct, long-term trade relationships with trade coffee distributors,
thereby cutting out middlemen and bringing greater commercial stability
to an extremely unstable market.
According to Oxofam, an
international relief and development organization, fair trade
certification started in 1988 in the Netherlands to combat dropping
coffee prices in the world market. What started as a way to raise
coffee prices, ended in better economics for struggling coffee growers.
The Fair Trade Labeling Organization (FTLO) now sets standards, and
inspects and certifies growers.
According to FTLO, their are four
standards for fair trade coffee certification, including:
- Fair
labor conditions: Those who work with Fair Trade farms are
able to work with freedom of association, safe working conditions, and
fair wages. Child labor is strictly prohibited.
- Direct
trade: With Fair Trade, importers purchase from Fair Trade
producer groups as directly as possible, eliminating the middle man and
letting the farmer compete in the global market.
- Democratic
and transparent organizations: Through proof of a
democratic market, Fair Trade farmers and farm workers decide how to
invest Fair Trade revenues.
- Community
development: Fair Trade farmers and workers invest Fair
Trade premiums in social and business development projects like
scholarship programs, healthcare services and quality improvement
training.
One of the main reasons I would encourage you to buy fair trade is that
it helps strength poverty-stricken nations by offering higher prices
for higher wages and better standards of living.
Like organic coffee, every time you buy a cup of organic fair trade
coffee or just fair trade, you're helping the local grower in a nation
you probably don't know much about. You're helping a grower put more
money in their employees pockets, which in turn puts food on their
family's table.
Let me know your thoughts on this subject. Feel free to contact me via Twitter.
Include why you do or don't like fair trade. In fact, let me know your
favorite and I'll post if for everyone to see!
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