fair trade coffee
some of our usda certified organic coffees are also fair trade certified. the fair trade coffees are designated by the fair trade usa logo .
in the first decades, fair trade products were sold mainly by fair trade organisations that had fair trade as the central ethos guiding their activities. in the seventies and eighties, fair trade products were sold to consumers mainly in world shops or fair trade shops .
every purchase supports something. fair trade exists so we can support what’s fair .
generically, “fair trade” is primarily concerned with alleviating poverty through greater equity in international trade; many products besides coffee can be certified as “fair trade. ” the main fair trade organization and standards - setter is
green mountain coffee roasters, which calls itself the largest buyer of fair trade coffee in the world, said that it would continue to work with fair trade usa as it sought to increase the amount of fair trade coffee it used .
there are other labels, of course: fair trade; organic; direct trade .
what does fair trade certified mean? could serving fair trade coffee in your business be beneficial? learn the definition and some of the pros and cons .
choosing fairtrade coffee means helping coffee farmers around the world to get a fair deal .
now that you have an overall understanding of what the fair trade movement and fair trade certification are, let’s explore what this means if you are a business owner considering buying and serving fair trade certified coffee, or finding ethically sourced coffee in general .
roasting 100% fair trade organic coffee since 2003. in addition to freshly roasted certified coffees, we offer a coffee of the month club, coffee gifts, wholesale coffee and a coffee fundraiser .
fair trade the term is used to' refer to the fair trade movement as a whole' and to' describe both labelled and unlabelled goods, the work of alternative trade organizations (atos), fair trade federations and networks' .
wal - mart and whole foods also sell fair trade coffee and use fair trade ingredients in store - brand products; both companies said they were evaluating the situation .
each roaster operates independently. some tout the fair trade logo, others emphasize selling organic coffee .
if you' re specifically interested in helping small farmers, maybe you should look for fair trade coffee. its whole focus is small coffee producers. traditionally, all fair trade coffee has come from cooperatives of small producers .
the fair trade movement came to being to raise awareness on trade injustices and imbalances of power in the conventional trade structures, and to advocate changes in policies to favour equitable trade. sale points of fair trade products became one of the effective methods of campaigning. it was the fair trade shops that started including producer stories in product packaging to raise awareness on fair trade. world / fair trade shops mobilised consumers to participate in campaigning activities for more global justice .
however, on september 15, 2011, fair trade usa announced its resignation from fair trade international, the international association of fair trade organizations (the fairtrade international logo is shown at right). the resignation took effect on december 31, 2011, and fair trade usa embarked on a different course from the rest of the world' s fair trade organizations .
fair labor conditions: workers on fair trade farms enjoy freedom of association, safe working conditions and fair wages. forced child labor is strictly prohibited .
during its history of over 60 years, fair trade has developed into a widespread movement. thanks to the efforts of fair trade organisations worldwide, fair trade has gained recognition among politicians and mainstream businesses. more successes are to be expected, as fair trade organisations develop into stronger players and mainstream companies become more and more attuned to the demand for fair trade in the marketplace. watch this space as we continue to write fair trade history !
fair trade - certified coffee is growing in consumer familiarity and sales, but strict certification requirements are resulting in uneven economic advantages for coffee growers and lower quality coffee for consumers. by failing to address these problems, industry confidence in fair trade coffee is slipping .
democratic and transparent organizations: fair trade farmers and farm workers decide how to invest fair trade revenues, and proof of a democratic process is required .
traidcraft has been at the forefront of fair trade for over 35 years, passionate about trade justice since 1979 .
but there are compromises with fair trade, too. it doesn' t focus primarily on environmental practices on the farms, and some buyers complain that fair trade coffee isn' t always good - quality coffee .
fair trade. inspired by humanitarian concerns, fair trade labeling helps to ensure that the workers on coffee farms get paid fairly for the work they do. the higher prices that fair trade products earn help to provide an alternative to the price leverage that large coffee buyers can wield. however, a fair trade label does not convey any specific information about environmental practices .
this version of the history of fair trade was prepared and edited on behalf of wfto with the input and advice of a number of fair trade pioneers .
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 .
coffee from individual fair trade farmers is collected and washed on the spot or dried. the scfcu acts as a quality monitoring body throughout the process. after being washed or dried the coffee is prepared for sale in a camp near addis abeda. the separation of fair trade coffee and conventionally traded coffee is thoroughly controlled. the traceability of fair trade coffee is given at any time .
“the fair trade certification process can be laborious and expensive for small farms. ”
while fair trade certification is one available option, there are many coffee companies that combine multiple missions and strive to have an overall socially and environmentally friendly company without exclusively dealing in fair trade products .
fair trade usa is another certifier of fair trade coffee and products in the u. s. once the u. s. member of the international system, it resigned in early 2012 and is now independent. under fair trade usa, independent producers and estates can gain certification .
much like organic certification, fair trade certification lets you know about the origin of a product. fair trade certified products come from all over the world, but share a common history. farmers who grow fair trade products receive a fair price, and their communities and the environment benefit as well .
rink dickinson, the president of equal exchange, an importer of fair trade coffee, chocolate, tea and bananas .
the company is participating in a pilot project with fair trade usa involving a 500 - acre organic coffee plantation in brazil, a farm that previously would have been too large to get fair trade certification .
complete and return an application to your fair trade contact to begin the audit process .
about two dozen countries have fair trade labeling organizations that license companies to market fair trade products. fairtrade international provides a uniform logo for use on packaging in most countries .
fair for life is a brand - neutral third party certification program for social accountability and fair trade in agricultural, manufacturing and trading operations. the program complements existing fair trade certification systems. social accountability and fair trade have become important indicators to select business partners in a global market place. the fair for life social & fair trade certification program offers operators of socially responsible projects a solution for objective inspection and certification by a highly qualified external verifier. it combines strict social and fair trade standards with adaptability to local conditions .
networking between fair trade organisations is crucial to their success. all over the world, networks have been established. regional networks include the asia fair trade forum (now wfto asia), co - operation for fair trade in africa (now wfto africa and middle east), the association latino americana de comercio justo (now wfto latin america) and ifat europe (now wfto europe). national networks also grew like ecota fair trade forum in bangladesh, fair trade group nepal, associated partners for fairer trade philippines, fair trade forum india, kenya federation for alternative trade (kefat), etc .
5. relatively little fair - trade coffee originates from the poorest countries. the poorest coffee - growing countries are in africa: ethiopia, kenya, and tanzania. fair - trade exports from these countries represent less than 10 percent of coffee marketed through fair trade, while the share of fair - trade coffee from middle - income countries such as mexico, brazil, and colombia is many times higher. effective poverty interventions should be targeted at most poor, not the medium - poor .
over time, four organizations were borne out of fair trade certification. transfair in germany, the fairtrade foundation, transfair usa, and rattvisemarkt. they joined together to form fairtrade labeling organizations international, which sets fairtrade standards for coffee growing and packing to this day. other international fair trade networks include the world fair trade organization, the network of european worldshops and the european fair trade association .
the fair trade accountability watch allows you to report non - compliance issues of our members .
fairtrade labelling organizations international .
about fair trade .
2006 (may 16, urltoken
in 1973, fair trade original in the netherlands, imported the first fairly traded coffee from cooperatives of small farmers in guatemala. now, more than 30 years later, fair coffee has become a concept. meanwhile, hundreds of thousands of coffee farmers have benefited from fair trade in coffee. in europe, fair trade coffee became a popular choice for many consumers. presently, between 25 to 50% of turnover of northern fair trade organisations comes from this product. after the success of coffee, many fair trading organisations expanded their food range and started selling commodity products like tea, cocoa, sugar, wine, fruit juices, nuts, rice and spices. consumers welcomed these products like coffee .
gourmesso fair trade coffee from ethiopia supports the sidama coffee farmers cooperative union and its projects. in addition to enjoying the perfect coffee moment, just by purchasing coffee like the etiopia blend forte you help support related reforms and progresses in the different regions of origin. try for yourself and enjoy the perfect espresso from the birthplace of coffee. in addition to fair trade coffee from ethiopia you will also find many other fair trade certified coffees that will delight you in our gourmesso online shop .
if organic coffee is purchased under a fair trade contract (see below), the producing cooperative receives a price premium of 15 cents a pound. outside a fair trade contract, producers can use the certification to negotiate a better price for their coffee .
christian mora is the general manager of afaorca, a fair trade coffee cooperative in costa rica. dan charles / npr hide caption
parallel to the development of labelling for fair trade products, the international fair trade association (now wfto) developed a monitoring system for fair trade organisations. in order to strengthen the credibility of these organisations towards political decision - makers, mainstream business and consumers, the ifat fair trade organisation mark was launched in january 2004. the fto mark is available to member organisations that meet the requirements of the ifat monitoring system and identifies them as registered fair trade organisations .
hunt confirms that westrock deals with both fair trade and non fair trade coffees, and says that the company works to embody socially conscious principles. some of the farms they work with are so small that the fair trade requirements are prohibitively expensive, such as some partners with as little as a dozen coffee trees .
where southern fair trade suppliers receive a pre - payment from buyers, they ensure that this payment is passed on to the producers or farmers who make or grow their fair trade products .
paul rice, chief executive of fair trade usa, said the fair trade movement was dominated by hard - liners who resisted needed changes. “we’re all debating what do we want fair trade to be as it grows up, ” mr. rice said. “do we want it to be small and pure or do we want it to be fair trade for all? ”
with our fairtrade coffee range you can be sure producers and workers get a fair deal whilst still enjoying high quality coffee .
many companies strive for socially and environmentally conscious practices, without dealing exclusively in fair trade products .
fair trade, diversification and structural change: towards a broader theoretical framework of analys ...
at the moment, in fact, the fair trade movement is going through a bitter split. one group, fair trade usa, wants to expand the label so it can include coffee from individual farmers — even big estates .
the international federation of alternative trade changed its name to world fair trade organization during the 2009 kathmandu annual general meeting (agm). the same year, the organisation spearheaded the global celebration of world fair trade day. the move to rebrand itself was part of the plan to make wfto one of the major global players in fair trade .
the academic evidence for any positive effect of fair - trade coffee on coffee growers is mixed at best. several recent studies by researchers at harvard, the university of wisconsin, and the university of california indicate that fair - trade coffee has small to negligible effects on coffee growers, especially the poorest ones. the university of california researchers find that the lack of impact stems from the ill - conceived design of the fair - trade system. indeed, a consensus among development economists indicates fair - trade coffee to be one of the least effective means for reducing poverty in developing countries .
like many economic and political movements, the fair trade movement arose to address the perceived failure of the market and remedy important social issues. as the name implies, fair trade has sought not only to protect farmers but also to correct the legacy of the colonial mercantilist system and the kind of crony capitalism where large businesses obtain special privileges from local governments, preventing small businesses from competing and flourishing. to its credit, fair trade usa has played a significant role in getting american consumers to pay more attention to the economic plight of poor coffee growers. although fair trade coffee still accounts for only a small fraction of overall coffee sales, the market for fair trade coffee has grown markedly over the last decade, and purchases of fair trade coffee have helped improve the lives of many small growers .
principle nine: promoting fair trade the organisation raises awareness of the aim of fair trade and of the need for greater justice in world trade through fair trade. it advocates for the objectives and activities of fair trade according to the scope of the organisation. the organisation provides its customers with information about itself, the products it markets, and the producer organisations or members that make or harvest the products. honest advertising and marketing techniques are always used .
65% of american shoppers indicate they would trust a product more if it was fair trade certified .
producers: beyond receiving a fair, stable price, fair trade also empowers producers to invest in their organizations, improve their communities and protect the environment .
starbucks, which has about 11, 000 coffee shops in the united states, also said that it planned to continue using fair trade usa to certify coffee it sells in this country. however, the company said that it had not decided whether to place a fair trade label on coffee grown on large plantations. starbucks said that about 8 percent of the coffee used in its global operations came from fair trade farms in 2010, or about 21 million pounds .
coopetarrazu sells coffee under the fair trade label. in addition, some of its farmers are rainforest alliance certified, and the co - op sells a lot of coffee to starbucks .
i see you, smugly smiling over your morning cup of fair - trade coffee, gratified at the unimaginable impact your thoughtfully chosen beans must be bringing to poor coffee growers overseas .
to get fair trade certification, he says, you have to show a fair trade organization that your cooperative keeps an honest set of books, that it operates democratically, and that it treats workers fairly .
kornell, sam .
the pros and cons of fair - trade coffee .
the santa barbara independent. april 5, 2007. urltoken
critics accuse fair trade usa of watering down standards, perhaps motivated by the bigger fees to be earned from certifying a higher volume of products. some sellers of fair trade products fear that small coffee farmers will lose market share to the big plantations and that companies will have an incentive to include only the minimum amount of fair trade ingredients in their products .
fair prices a fair price is freely negotiated through dialogue between the buyer and the seller and is based on transparent price setting. it includes a fair wage and a fair profit. fair prices represent an equitable share of the final price to each player in the supply chain .
awareness of the fair trade certified seal has nearly doubled since 2008—now at 63% in the united states .
the terms “fair trade certified” or “fair trade certification” are related to a certification by either flo (fairtrade labeling organization international, also called fairtrade international) or fair trade usa, two nonprofits who impose regulatory requirements related to safe labor practices, wages, and environmental impacts on farms and plantations around the world (specifically africa, asia, latin america, the caribbean, and oceania) in exchange for the fair trade label .
critics of fair trade don' t have issues with the positive impacts of the programs or the humanitarian intentions behind them, but rather some of the possible flaws in the long - term effects of fair trade .
economics a - z .
fair trade .
the economist. 2008. (may 16, urltoken
global exchange .
understanding fair trade .
feb. 5, 2008. (may 16, urltoken
fair trade a term which often describes one or many of the entries under fair trade,' but can also be used to refer to trade justice issues. in such cases, it can be as broad as to describe general fairness in trade, such as tariffs, subsidies, worker rights and other issues' .
the earliest traces of fair trade in europe date from the late 1950s when oxfam uk started to sell crafts made by chinese refugees in oxfam shops. in 1964, it created the first fair trade organisation. parallel initiatives were taking place in the netherlands and in 1967 the importing organisation, fair trade original, was established .
fair - trade networks have been working to temper the inequities and uncertainties facing small - scale artisans and farmers and to provide them with more secure and livable incomes. drawing on earlier research in 1991–1993 and a brief pilot study in 2006, this research note examines farmers’ perceptions of the benefits and drawbacks of production for fair trade in three coffee - producing regions in costa rica. while the fair - trade movement has made significant headway in bringing social and environmental concerns to the marketplace and in providing farmers with guaranteed minimum prices for their coffee, farmers’ reactions to production for fair trade indicate a number of problems that farmers and fair - trade cooperatives are facing in their efforts to reap the potential benefits of fair trade. as currently structured, fair - trade markets alone do not adequately address the needs of small farming families in latin america .
to understand how the problem arises, one must understand that the low consumer demand for fair trade coffee means that not all of a particular farmer’s coffee, which will be of varying quality, may be sold at the fair trade price. the rest must be sold on the market at whatever price the quality of the coffee will support .
fairtrade is a movement for change that works directly with businesses, consumers and campaigners to make trade fair for farmers and workers. the international fairtrade system represents the world' s largest and most recognized fair trade system .
the flo model has changed little since its inception. although the fair trade price and premium for coffee has been adjusted upward over time, the rules and regulations have remained fairly static. fair trade’s chief legacy may be greater consumer awareness among coffee drinkers. “we generate awareness to create demand in the market, ” explains stacy wagner, public relations manager at fair trade usa. and they have had tremendous success doing so. today, according to wagner, 50 percent of american households are aware of fair trade coffee, up from only 9 percent in 2005 .
the fair trade movement arose as a possible way to address these concerns. since its inception, there has been controversy over the efficacy, practices, and costs associated with the fair trade label. simply put, the term “fair trade” typically refers to the movement or principles of providing fair wages and labor practices in international trade. to better understand the details of many of those principals, you can find an in - depth charter here .
esquires coffee has the vision of becoming the world’s leading fairtrade and organic coffee retailer .
harrison, who works in the wedding business where coffee is always a factor, says, “some brides love starbucks, which works hard to sustainably source and offers organic blends—but only a fraction of their products are fair trade certified. ” she also offers the example of a coffee company such as rohan marley’s marley coffee, which doesn’t offer exclusively fair trade, but every coffee is some combination of fair trade, usda organic, or rainforest alliance certified, so the social mission is clear through each product .
one frequent criticism is that fair trade prices artificially inflate prices above the market value without doing anything to address real problems, like oversupply. the more coffee available for purchase, the lower coffee prices drop. critics argue that all fair trade does in these circumstances is prop up underperforming farming or manufacturing practices .
“starbucks, green mountain and other coffee companies will be able to become 100 percent fair trade not because they’ve changed their business practices one iota but because fair trade usa has changed the rules of the game, ” said dean cycon, founder of the dean’s beans organic coffee company, in orange, mass .
welcome to a more responsible, sustainable way of doing business. learn how to become a fair trade partner .
fair trade usa certifies producers and groups of producers of all sizes, including farms, fisheries, and factories .
7. the fair - trade system is inefficient at transferring coffee consumers' goodwill to producers. in an experiment run by my graduate students in san francisco (described in the taste of many mountains), we found that the median coffee drinker is - - amazingly - - willing to pay a premium of 50 cents for a cup of fair - trade coffee. however, we find that even in the best - case scenario for fair trade, when world prices are at their lowest, the maximum amount a fair - trade grower from that same cup of coffee would receive is only one third of a cent .
8. direct trade is probably more efficient and sustainable than fair trade. under direct trade, a coffee buyer contracts directly with specific growers overseas to offer a higher coffee price, often in exchange for a higher - quality product and a long - term relationship. although direct trade is certainly not a panacea, more real value is created in the system, making it an arguably more efficient means of transmitting resources from coffee drinkers to coffee growers .
if organic and fair trade certifications are problematic, what does that leave everybody, be they growers, sellers, or consumers? that’s where direct trade comes into play .
from the mid 70s, fair trade organisations worldwide began to meet informally in conferences every couple of years. by the mid 80s there was a desire to come together more formally and by the end of the decade two organisations were established. the european fair trade association (efta), an association of the 11 largest importing fair trade organisations in europe, was formed in 1987, and two years later, the world fair trade organisation (wfto), formerly the international federation of alternative trade (ifat) .
theoretically, by empowering small farmers and laborers, fair trade can shift the power structure to favor the underprivileged. in addition, as fair trade wages allow workers to get out of debt and improve their communities, they can better position their communities for growth. fair trade benefits more than 800, 000 farmers worldwide [ source: global exchange ]. certified products continue to appear on more shelves as mainstream acceptance of fair trade brands increases throughout the developed world .
for a more in - depth picture of how fair trade works, refer to our global model or contact us .
since 2000, fair trade sales and consumer awareness have increased tremendously, as the range of fair trade organizations has also expanded. from the early days of lace and home decor, handmade items now include clothing, sports equipment, toys, and other items. from its initial focus on coffee, fair trade product certification has expanded to tea, chocolate, sugar, vanilla, fruit, wine, and much more. in 2002, the first world fair trade day was celebrated to heighten consumer awareness and to strengthen connections among fair traders and interested citizens around the globe .
the most damaging aspect of the fair - trade coffee system may be that it misleads well - meaning coffee consumers into believing that by buying fair - trade coffee they are doing something meaningful and helpful for the poor, while the best evidence suggests that other types of programs are far more effective. and this tragically misdirects energy and attention away from approaches to fighting poverty that actually work quite well. perhaps a main reason that fair - trade coffee continues to have credibility with many in the general population is the immense marketing campaign undertaken by fair trade usa, which continues to promote itself despite the self - neutralizing flaws in its poorly designed system .
giuliano originally embraced the fair trade - certification model—which pays producers an above - market “fair trade” price provided they meet specific labor, environmental, and production standards—because he believed it was the best way to empower growers and drive the sustainable development of one of the world’s largest commodities. today, giuliano no longer purchases fair trade - certified coffee for his business. “i think fair trade as a concept is very relevant, ” says giuliano. but “i think the fair trade - certified flo model is not relevant at all and kind of never has been, because they were doing something different than they were selling to the consumer. … that’s exactly why i left transfair [ now fair trade usa ]. they’re selling a different thing than they’re producing. ”
in the following years, similar non - profit fair trade labelling organisations were set up in other european countries and in north america. in 1997 their worldwide association, fairtrade labelling international (flo, now fairtrade international) was created. today, fairtrade international sets international standards for several fair trade products. flo - cert, an independent certification and verification organisation, uses the fairtrade standards in certifying production and auditing trade. products that meet these standards are identified by the fairtrade label. fair trade labelling has helped fair trade to go into mainstream business. currently, over two - thirds of fair trade products are sold by mainstream catering and retailing .
it was during the 2011 mombasa agm that wfto members decided to have a new fair trade system. following that decision, the wfto board was tasked to form a working group to design a system that would pave the way for a product label for fair trade organisations. the group was composed of experts in the field of fair trade verification and monitoring .
the audio of this story, as did a previous web version, incorrectly says that fair trade certification does not deal with environmental practices on farms. in fact, fair trade does encourage farmers to introduce good environmental practices, such as using less water and handling pesticides safety. those practices, however, are not a primary focus of fair trade certification .
coffee, which mr. rice said accounted for more than 70 percent of the fair trade market in the united states, is at the center of the dispute .
both trading organisations in the south and the north felt the need to establish a global network for fair trade organisations, to act as voice for fair trade and a forum for the global fair trade movement. thus, in 1989, wfto was formed in the netherlands. the members of wfto vary greatly. they represent the fair trade supply chain, from production to sale, and also include support organisations such as shared interest, which provides financial services and support to produces .
for every fair trade certified product sold, the buyer pays a premium on top of the fair trade price. the premium amount goes into an account managed by a fair trade committee, which decides how to invest these funds back into the community. to look up the premium amount for a particular product, see prices and premiums information on our standards page .
it was with the dismantling of the international coffee agreement, world coffee prices beginning to sharply decline, and the lack of viable government solutions, that the concepts for a third - party certified “fair trade” market for coffee were born. the promotion of fair trade for coffee began in holland in 1988, with small - scale farmer cooperatives in mexico and a dutch ngo, solidaridad, creating the first fair trade certification initiative. following suit, transfair international, was founded in germany in 1992. from this humble beginning, an international network of fair traders was born, in the hopes of raising the political and social consciousness of coffee consumers to the plight of small - scale coffee producers around the world .
direct trade: importers purchase from fair trade producer groups as directly as possible, eliminating unnecessary middlemen and empowering farmers to develop the business capacity needed to compete in the global marketplace .
food products enable fair trade organisations to open new markets, such as institutional markets, supermarkets and bio shops. in addition to these food products, other non food products such as flowers and cotton have been added to the fair trade assortment .
research has recently suggested that fair trade certification “reinforced” producer - consumer differences and dominant power relations. [ 10 ] issues raised included the amount of influence producers in developing countries have within fair trade networks located outside monitoring systems in their own countries .
principle eight: providing capacity building the organisation seeks to increase positive developmental impacts for small, marginalised producers through fair trade .
downie, andrew .
fair trade in bloom .
the new york times. oct. 2, 2007. urltoken
ms. yusen said that green mountain bought 26 million pounds of fair trade coffee in 2010; in that year, it paid $ 1. 5 million in licensing fees to fair trade usa, making it the largest source of revenue for the nonprofit group, according to federal tax filings .
in the second half of the 1980s, a new way of reaching the broad public was developed. a priest working with smallholder coffee farmers in mexico and a collaborator of a dutch church - based ngo conceived the idea of a fair trade label. coffee bought, traded or sold respecting fair trade conditions would qualify for a label that would make it stand out among ordinary coffee on store shelves, and would allow not only fair trade organisations, but any company to sell fair trade products. in 1988, the “max havelaar” label was established in the netherlands. the concept caught on: within a year, coffee with the label had a market share of almost three percent .
the subject of which methods are the most effective and efficient is controversial, and this is a big part of the ongoing conversation about finding ethically sourced coffee and how fair trade certified coffee fits into the larger picture .
the group says the changes will benefit more poor farmers and farm workers around the world and make it easier for large corporations to sell fair trade products. sales of fair trade goods in 2010 were $ 1. 3 billion in the united states and $ 5. 8 billion globally. fair trade usa said it hoped to double sales in the united states by 2015 .
2. fair trade attracts bad beans. every crop contains some beans that are of higher quality than others. if the market price for the low - quality beans is below $ 1. 40 and the market price of high - quality beans is above $ 1. 40, then the fair - trade system incentivizes growers to dump their bad beans into fair - trade channels. as economists will lecture to you unceasingly, incentives matter. as the bad beans are drawn into the fair - trade market (what economics calls
adverse selection
), potential buyers eschew buying the coffee for fear of being stuck with the low - quality beans. this phenomenon has limited the market for fair - trade coffee .
“social responsibility and justice have always been important to obey in both message and practice. our hope is not only to benefit the workers in our fair trade factories, but to lead by example and promote the expansion of the fair trade program .
meets the demand of the socially - conscious consumer. fair trade usa references the concept on their website of the socially - conscious consumer, someone who is aware of certifications like usda organic and fair trade and will likely be looking for them or asking about them. if you own a coffee shop or restaurant, you’re likely to get questions about the type of coffee you serve and why, and to many customers fair trade certified will be words they’re happy to hear .
1. the flawed design of the system undermines its own benefits. recent research by development economists alain de janvry and betty sadoulet at u. c. berkeley and craig mcintosh at u. c. san diego shows that when the world price of coffee falls (and the advantages of selling through fair - trade channels increase), more borrowers choose to obtain fair - trade certification. but this reduces the fraction of coffee that their cooperatives can sell at the fair - trade price. what they found after examining 13 years of data from cooperatives in guatemala is that, on average, the economic benefits of participating in the fair - trade system are offset by the price the growers have to pay for fair - trade certification. in other words, they found that the long - term benefit over time from fair trade to be essentially zero .
the changes include giving the fair trade designation to coffee from large plantations, which were previously barred in favor of small farms. the group is also proposing to place its seal on products with as little as 10 percent fair trade ingredients, compared with a minimum of 20 percent required in other countries .
the price paid to the grower or local co - op, must be at least 25% above the fair trade price .
a fair trade committee consists of a group of producers, workers, farmers, and fishermen that foster communication and collaboration on important issues such as health and safety and community investments. their main responsibility is to manage the use of the fair trade premium .
mitchell, dan .
the economist on' fair trade.'
the new york times. dec. 16, urltoken
intelligentsia pays growers 25 percent above the fair trade price. beyond that, it takes a flexible approach to labor issues, as it does with environmental issues. the guideline is economic sustainability. are all parties benefiting from the coffee trade ?
simply put, there is a small pool to choose from. from the stanford social innovation review: “an estimated 25 million small producers make up 70 percent of worldwide coffee production, but sales of fair trade coffee account for only two percent of total production. those figures clearly indicate the challenge—as well as the opportunity—that lies ahead for fair trade organizations. ”
most fair trade programs around the world already allow bananas, tea and flowers to be grown on large farms. but traditionally, fair trade coffee and cocoa had to come from small farms organized into cooperatives. the farmers receive a premium for use in community projects, like paying for schools or medical care .
then there are others, like dean' s beans, a massachusetts roaster whose founder is not reticent to tell you he' s a former environmental lawyer. actually, he' s not reticent at all. dean' s beans is quite assertive about promoting itself as going beyond fair trade standards and selling only organic coffee and only
fair trade
coffee as dean' s beans defines fair trade. dean' s says its standards are even better for producers than other certifications .
studies were carried out in areas such as coffee price determination and volatility, organic coffee, and the formation of a global research network on coffee .
fair trade is changing the way people think about their day - to - day purchases. see our consumer insights to see why more than 1, 200 brands have chosen fair trade certification to meet sustainability goals, increase brand value, and reach more shoppers .
9. we should encourage less coffee production, not more. efforts to help coffee growers by paying them more for their coffee all stimulate more coffee production, which is precisely the wrong way to help coffee growers. it is lower worldwide coffee production that brings the most benefit to each grower, by raising coffee prices. thus the best approaches to helping coffee growers involve helping people move away from coffee production. interventions in coffee communities like microfinance, cash grants to start new enterprises, and internationally sponsoring the children of coffee growers to help these children obtain more and better education help coffee growers worldwide because they reduce the world supply of coffee. this benefits everyone, because as coffee growers and their children move to other occupations, all producers in the world benefit from higher coffee prices. artificially stimulating more coffee production keeps coffee growers poor .
fair trade usa is a nonprofit, but an unusually sustainable one. it gets most of its revenues from service fees from retailers. for every pound of fair trade coffee sold in the united states, retailers must pay 10 cents to fair trade usa. that 10 cents helps the organization promote its brand, which has led some in the coffee business to say that fair trade usa is primarily a marketing organization. in 2009, the nonprofit had a budget of $ 10 million, 70 percent of which was funded by fees. the remaining 30 percent came from philanthropic contributions, mostly from foundation grants and private donors .
between the days when a cup of coffee was just a cup of coffee at 25 cents a cup with free refills and today, when we can enjoy a variety of delightful and exotic coffee blends at sometimes equally exotic prices, a lot has changed with respect to how coffee is bought and sold. and many of these changes are directly related to the fair trade coffee movement .
eros fairtrade coffee is picked by hand in some of the finest coffee growing regions in the world .
in an effort to complement the fairtrade certification system and allow for example handcraft producers to also sell their products outside worldshops, the world fair trade organization (wfto), formerly the international fair trade association (founded 1989), launched a new mark to identify fair trade organizations in 2004 (as opposed to products in the case of fairtrade). called the fto mark, it allows consumers to recognize registered fair trade organizations worldwide and guarantees that standards are being implemented regarding working conditions, wages, child labour and the environment .
yes. fair trade usa understands that producers have worked hard to achieve these certificates, so we honor most flo - cert certifications .
fair trade usa, the movement’s leading advocate in the united states, angered critics by saying it would cut its ties at year’s end with the main international fair trade group and make far - reaching changes in the sorts of products that get its seal of approval .
currently, coffee packers pay a fee to fairtrade, who assigns the right to use the fairtrade logo for coffee packers whose farmers and cooperatives meet fairtrade criteria for growing and delivering coffee. coffee retailers are free to sell fairtrade coffee at a higher price .
fair trade is a voluntary program utilized by coffee importers and food companies to create an alternative market for traditionally disadvantaged producers in developing countries, usually small scale farmers. the components include :
grown in the high reaches of chiapas state in southern mexico. this fair trade and organic coffee has nutty and cocoa flavor notes with a hint of tart blackberry. full city roast .
but critics say that large plantations do not need help getting access to major markets, and the small coffee farmers who have been at the heart of fair trade could be squeezed out .
it all started in 1962, when the international coffee agreement (ica) was drafted at the united nations by the coffee study group. this agreement enabled the international coffee organization to regulate coffee products. it also set careful limits on how much coffee could be traded between countries to avoid a glut of coffee supply overwhelming demand and driving down global coffee prices .
at amt we are incredibly passionate about coffee and we genuinely believe that producers should receive fair prices for their outstanding products .
commodity coffee is broken into grades, but within each grade the coffee is standardized. this means that beans from one batch are assumed to be identical to those in any other batch. it is a standardized product. specialty coffee, on the other hand, is sold because of its distinctive flavor characteristics. because specialty coffees are of a higher grade, they command higher prices. fair trade coffee can come in any quality grade, but the coffee is considered part of the specialty coffee market because of its special production requirements and pricing structure. it is these requirements and pricing structure that create a quality problem for fair trade coffee .
shenck, marcia catherine .
criticism of fair trade .
mount holyoke college. spring 2006. (may 16, 2008) urltoken
of the extra money that costa charged, more than 90% did not reach the farmer. cafedirect did not benefit, so unless using the fair trade coffee somehow increased costa' s costs hugely, the money was being added to profits. the truth is that fair trade coffee wholesalers could pay two, three or sometimes four times the market price for coffee in the developing world without adding anything noticeable to the production cost of a cappuccino. because coffee beans make up such a small proportion of that cost customers might have concluded that the extra 10p was to cover the cost of the fair trade coffee, but they would have been wrong. a certain undercover economist made some inquiries and found that costa worked out that the whole business gave the wrong impression, and at the end of 2004 began to offer fair trade coffee on request, without a price premium .
the way we source and buy coffee is integral to providing the remarkable coffee we’re able to offer you .
he dismissed criticism that his group was seeking to increase revenue for its own sake. “the more we grow volume, the more we can increase the impact” of fair trade, he said. in 2010, companies that sell fair trade products paid the group $ 6. 7 million in licensing fees, which are meant to pay the cost of auditing a company’s production to make sure its fair trade claims are accurate .
costa, like most other coffee bars these days, offers' fair trade' coffee - theirs comes from a leading fair trade brand called cafedirect. cafedirect promises to offer good prices to coffee farmers in poor countries... for several years, customers who wished to support third - world farmers - and such customers are apparently not uncommon in london - were charged an extra 10p. they may have believed that the 10p went to the struggling coffee farmer. almost none of it did .
a cup of “fair - trade” coffee used to make mud taste good, and you could buy it only in churches and charity shops. today, it is indistinguishable from the other fine coffees sold alongside it at starbucks and other big retailers. the same goes for other fair - trade goods such as bananas, chocolate and tea .
fair trade principles have deep roots in european societies long before the first structured alternative trading organizations (atos) emerged following world war ii. many of the fundamental concepts behind fair trade actually show a great resemblance with pre - capitalist ideas about the organization of the economy and society .
fair wages a fair wage is an equitable, freely negotiated and mutually agreed wage, and presumes the payment of at least a local living wage .
some roasters use
direct trade
in more specific ways. the chicago - based company intelligentsia, which roasts coffee and sells it by mail, in addition to operating coffee shops, has trademarked the term intelligentsia direct trade to promote its direct business relationships with growers. counter culture coffee, another roaster, established in 2008 what it calls counter culture direct trade certification. like fair trade, counter culture sets a minimum price it pays, but it also establishes a quality standard. also, unlike the fair trade certification, counter culture does not require growers to be part of a cooperative, a requirement that rankles some independent - minded, successful growers.
fair trade coffee is coffee that is certified as having been produced to fair trade standards . fair trade organizations create trading partnerships that are based on dialogue , transparency and respect , that seeks greater equity in international trade . these partnerships contribute to sustainable development by offering better trading conditions to coffee bean farmers . fair trade organizations are engaged actively in supporting producers and sustainable environmental farming practices . fair trade practices prohibit child or forced labor . 
fair trade coffee is coffee that is certified as having been produced to fair trade standards. fair trade organizations create trading partnerships that are based on dialogue, transparency and respect, that seeks greater equity in international trade. these partnerships contribute to sustainable development by offering better trading conditions to coffee bean farmers. fair trade organizations are engaged actively in supporting producers and sustainable environmental farming practices. fair trade practices prohibit child or forced labor.
fair trade coffee is coffee that is certified as having been produced to fair trade standards. fair trade organizations create trading partnerships that are based on dialogue, transparency and respect, that seeks greater equity in international trade. these partnerships contribute to sustainable development by offering better trading conditions to coffee bean farmers. fair trade organizations are engaged actively in supporting producers and sustainable environmental farming practices. fair trade practices prohibit child or forced labor.