What Is Fair Trade Coffee?

Fair trade coffee has experienced a dramatic increase in sales since it was first marketed in the 1980s. The term "fair trade" refers not to any difference in flavor, but to the economic results the product provides for its growers. You can purchase Fair Trade coffee both through small vendors (such as local co-ops and non-franchised cafes) and through large chain grocery stores and coffee shops.

The difference between Fair Trade and regular

Fair trade coffee is produced by cooperatives formed by a number of growers in the same region. This co-op then sells their coffee at a guaranteed minimum price that represents a "fair" living wage in their area. If the market price is above the minimum, the growers receive a premium on each pound. The co-op decides democratically how profits are spent to enhance the production of their lands and to promote local economic development. Regular coffee, on the other hand, is produced with an eye to profiting multinational corporations, with as little money as possible paid to the actual workers and no concern for local community development. Wages for a coffee plantation's workers are far higher on fair trade land than corporately-owned land.

Fair Trade certification

Fair Trade, as a label, had its beginnings in the Netherlands in 1988 when growers faced a monumental dilemma: the supply of coffee had exceeded demand. Prices were forced to drop so low that workers were unable to profit from their labor while powerful corporations continued to benefit. The Fair Trade certification is now in use world-wide for many products like coffee, tea, rice, bananas and sugar; it is given out by the Fair Trade Labeling Organization. The coffee certification assures consumers that the coffee they consume comes with positive environmental and economic policies.

Fair trade coffee is a smart and easy way for a consumer to encourage equality and good pricing practices with their purchases. Although some consumers criticize the principle of trade justice, it is empirically evident that fair trade practices have enhanced the quality of life for many workers around the world.