The countries known for growing the best coffee in the world are all in a specific climate found in regions near the equator. Unfortunately, many of these countries face economic uncertainties and as a result the global price of coffee is inconsistent. Quite simply, fair trade means a fair price. Fair trade coffee addresses many of the obstacles these developing countries face and provides stability for farmers by offering a ‘Fairtrade Minimum Price.’ The Fair Trade Certified label on coffee indicates that the farmers who grew the coffee and worked on the beans received a fair, living wage and price for the product.
Fair trade is a movement that promotes fair pay and ethical treatment for producer groups in developing countries when they export their goods to developed countries at set minimum prices. Coffee beans qualify as fair trade when they meet the 10 fair trade labor and sustainability standards and receive a certification from nonprofit, third-party fair trade associations. These include prohibiting the use of child labor and forced labor, maintaining safe and healthy working conditions, and respecting the environment by using responsible production methods. In order to maintain certification, fair trade companies must also complete an annual assessment.
Fair trade coffee creates transparency around where our coffee is sourced and addresses the challenges producers face in each region. In areas where employment opportunities are scarce, people are left with no other option than to work long hours for low wages, often in unsafe conditions. Middlemen, or commodities traders, pay farmers lower prices than their goods are worth to raise their profits. As a result, farmers, their families, and their communities suffer. The decision to purchase fair trade coffee has a positive impact on people around the globe, by providing them a living wage and a better chance at a quality life.
The Fairtrade Minimum Price has historically been approximately 40% greater than the current coffee market price. Its increase provides farmers with price risk management support to offset steep inflation and costs incurred by climate change adaptation. Fair Trade Certified also indicates the product that you are buying is of high quality, as those farmers and producers avoid cost-cutting practices and refuse to sacrifice quality. Farmers are inspected to ensure they are surely maintaining high standards should they use the fair trade label on their products.
Smaller, private coffee producers have fewer resources but tend to benefit more from fair trade practices that the bigger brands are lacking. Small farmers are also more likely to take an interest in their community, culture, and fellow coffee growers. Fair trade has become a global movement that aims to create sustainable jobs by providing fair wages, rights and resources to small coffee growers.
