What is Fair Trade Coffee?
The Logic Behind Socially Conscious Coffee
Fair trade coffee is founded on the principals of social justice and environmental sustainability. Its advent is a reaction to the worldwide exploitation of coffee growers. Coffee is traditionally a volatile market, where world prices can dip well below production levels, even while the cost of a cup of coffee remains the same. When prices fall, small-scale farmers are vulnerable to a cycle of poverty and debt, which is nearly impossible to transcend. The downfall of small farmers opens up the coffee market to huge companies who clear-cut forests, use chemicals and pesticides, and are not required to provide livable wages or safe working environments to employees. Fair trade coffee economics attempts to give the local coffee growers some stability within their livelihood.
The concept of fair trade originated in the 1940's. A handful of church groups created a business model designed to benefit producers in Latin America, Asia, Africa, and the Caribbean. The idea began with handcrafted goods, but today it encompasses coffee, tea, cocoa, fruit, sugar, rice, and vanilla. Fair trade officially began with the formation of the international regulatory agency, Fairtrade Labeling Organizations International (FLO) in 1997. Today there are twenty organizations in 19 countries that belong to FLO, including the U.S. member, Transfair USA.
The FLO and its member organizations are responsible for setting fair trade requirements and certifying companies who want to carry the fair trade logo on their brand. When a company is certified they have agreed to fulfill certain criteria, and are making a commitment to provide the consumer with a socially conscious product.
Fair Trade Coffee Information
What is fair trade coffee? It is coffee grown under the following certification requirements set by Transfair USA.
- Coffee farmers are guaranteed fair prices. There is a price floor of $1.26 for one pound of coffee, with a $.10 premium when world prices increase. Fair trade companies also agree to provide pre-harvest credit so farmers don't have to seek out a third party for unfair loans.
- Both workers and farmers have the right to fair labor conditions. This includes the freedom of association, safe conditions, and livable wages.
- Fair trade requires direct trade between the coffee producer and the coffee importer. No middle man is allowed to step in to take a portion of the profit; it goes directly to the farmers and workers.
- Fair trade farms are run democratically - all employees are involved in the process. The farmers choose how to re-invest their trade revenues.
- Fair trade certification expects community involvement by the farms. A portion of trade revenues are invested into social projects, in education, or for organic certification.
- Fair trade coffee is grown under the umbrella of environmental sustainability. No agrochemicals, pesticides, or GMO's are used; they are replaced by sustainable methods, such as recycling water and using coffee husks as fertilizer. Biodiversity is practiced - most fair trade farmers are able to plant other crops along with coffee. These methods typically result in a much better crop.
Where to Buy Fair Trade Coffee
There are one hundred companies in the United States that are certified by Transfair USA. Some companies, such as Equal Exchange, Peace Coffee, and Dean's Beans carry fair trade beans exclusively, generally organic fair trade coffee. Other companies carry one or more fair grade coffee roasts. You can buy fair trade coffee online, and in most major grocery stores, it is just a matter of looking for the fair trade logo - a black and white figure carrying two baskets. Whole Foods Market, Wegman's, Safeway, Costco, and Trader Joe's all carry fair trade coffee. Also many coffee shops, such as Starbucks Coffee and Caribou Coffee offer some qualified products, you just have to ask for it.
Today fair trade coffee economics are still shaky at best. Farmers are only able to sell about 20% of their crop to fair trade buyers. The rest goes to conventional buyers, typically for $.60 or $.70 a pound. This is because the demand for fair trade coffee is still low. It is, however, the fastest growing coffee in America. As consumers continue to demand socially conscious coffee, companies will make the effort to offer organic fair trade coffee. It is, ultimately, up to the consumer.
Sources
"About Fair Trade." Transfair USA. <http://www.transfairusa.org>.
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