What is Fair Trade Coffee?

If you love coffee, you have likely heard about fair trade.

From Starbucks to Whole Foods, more and more corporations are offering fair trade coffee. Fair trade merchandise ranges from clothing to consumables, with coffee being one of the most common commodities. But what exactly is fair trade, and why is it so popular?

What is fair trade Coffee?

Fair Trade coffee is a movement which promotes fair wages and ethical treatment of producer groups in developing nations when they export their products to the developed world. Fair trade is governed by standards established by third-party fair-trade associations. These certifications are given to companies who adhere to the 10 principles.

Obstacles for Developing countries
Limited Jobs- When employment opportunities are limited, many people have to work long hours in low-wage, often unsafe, environments.
Low Value- As local markets become overcrowded, the value locally-produced goods (such as coffee) will drop significantly.
Unfair trade deals- Also, middlemen (or commodities traders) pay farmers lower than what their goods are worth to increase their own profits. This results in farmers losing their livelihoods, as well as their families and communities.
Solutions Fair Trade Offers
Long-Term Partnerships- Fair trade companies will make a commitment to work with the same producer for at least 3 years. Because real change takes time, long-term arrangements give farmers the chance to improve their farming methods under the direction of their distributor. Fair trade companies pay fair wages to producers who sell their products. They are also educated on human rights and have safe working conditions.
New markets- Because the demand for their products is higher in Europe and North America than it is at the local level, producers can negotiate a better price.
Eliminate middlemen- Producers work directly with distributors. This refers to coffee. It means that green coffee buyers travel to the developing world to meet farmers and form trusting trading relationships.

Fair Trade Principles

Create opportunities for employment in the developing world.
Transparency in communication is key. Also, be transparent in your actions.
Focus on improving the quality of life for producers by negotiating long-term deals and obtaining cash advances at no interest.
Producer groups are to be paid a fair wage promptly, in accordance with the agreement made by both parties.
Prohibit forced and child labor.
Discriminate not based on race or caste, religion, disability and gender.
Safe and healthy work conditions
Encourage producer groups to be independent by encouraging them in their management skills and accessing new markets.
Fair trade is promoted by raising awareness about the issues in the developing countries and how ethical trading can benefit producers’ lives.
Use responsible production methods to respect the environment.
Fair Trade Certifications

Fair trade coffee companies have to meet fair trade standards. They will then be eligible to apply for fair-trade certification and must pay fair trade association membership fees. Fair trade coffee brands must complete an annual assessment to keep their certification. This includes information about how often each producer has been visited, as well as details such as the number of times they have been visited. Peer reviews are a common part of the certification process. This means that other competitors will evaluate each other and report back. This way, you can be sure that fair trade certified companies are following all 10 principles.

After they have been certified, they can use a Fair Trade Certified(tm), logo on their packaging.

Fair trade associations include:
Fairtrade International
FLOCERT
Fair Trade Federation
World Fair Trade Organization
What does Fair Trade have to do with Coffee?

The most delicious coffee is grown in specific regions close to the equator. Many countries with this climate face economic uncertainty due to government issues or other factors.

Coffee is second only to oil in terms of exports to the developed world. Coffee is in high demand in North America and Europe. This opens up opportunities for coffee farmers from developing countries to export their coffee. It also means that we as consumers have to be aware of where our coffee is coming from.

Fair Trade Coffee Prices

Farmers often form cooperatives within their local communities when they come together. These cooperatives can offer their products to coffee companies in North America or Europe. Fair trade coffee companies meet directly with farmers to negotiate a fair price. This takes into account market value and operating expenses. The company will pay the farmers a portion upfront of the order cost once a reasonable price has been agreed upon. This allows farmers to cover their costs until the order is completed. Then they will receive the balance of the order price.

How Much Money Does the Farmers Get?

It is common to believe that fair trade products are paid for by the farmer. The farmer will be paid full price by the time that the product is on shelves. It is important to buy fair trade commodities because it allows fair trade organizations the ability to place more orders from developing countries.

Many coffee farmers will put their profits into their communities to improve their lives and work conditions, education, health, and the environment. It is important for farmers to receive consistent orders from distributors in order to sustain these improvements. Distributors cannot buy more than they can sell. This cycle is largely controlled and managed by the choice of consumers to buy fair trade.

Fair Trade Coffee: Why buy it?

What makes fair trade so popular? People are more conscious about where their money is going and becoming more aware of the problems in developing countries. Because consumers have the power and ability to influence their buying decisions, fair trade coffee companies will become more ethical if they are supported by more people. Fair trade associations encourage happier, healthier lifestyles in developing countries by providing fair wages for farmers, prohibiting child labor and mandating sustainable regulations.

Fair trade coffee is more valuable than regular trade because it is focused on improving the lives of people. Because no corners are cut in any stage of the production process, this is a good thing. Protecting the environment, for example, not only helps farmers avoid exposure to harmful chemicals but also results in a better coffee plant that produces more flavorful berries. Fair trade coffee not only supports farmers in developing countries, but also tastes great.

Your company is supporting fair trade certification of coffee brands by purchasing them. Fair trade coffee helps communities become self-sufficient by allowing them to use their earnings for local education and healthcare.

How to buy Fair Trade Coffee

Fair trade certification logos should be used when purchasing coffee grounds and beans. While not all companies are fair trade, some may offer fair trade products. Some co-ops and grocery stores may have fair trade aisles. Fair Trade Certified(tm), logos will be displayed on packages if you order coffee bulk online. All you have to do is look for them.

These are some good brands of fair-trade coffee:

• Green Mountain Roasters
• Equal Exchange
• Level Ground
• Pura Vida
• Higher Grounds
• Cafe Direct
• Grumpy Mule

What is the difference between Fair Trade & Direct Trade?

Direct trade is another option you might have heard of when shopping for coffee. Fair trade and direct trade both eliminate the middleman so that buyers can directly work with farmers. A second similarity is the fact that farmers and coffee growers enjoy a longer-lasting buying relationship.

Goals

Direct trade and fair trade have very different ends. Direct trade focuses on the quality and production of coffee. Fair trade was created to improve the lives for farmers. Direct trade, on the other hand, helps farmers by ensuring a high-quality product. Quality requires long-term relationships and environmental responsibility. Neither of these can be achieved without transparency and accountability as well as fair wages. Even though each trade movement has a different focus they can both be good options for stocking your cafe.

Certificates

A second difference is that fair trade must still be certified by third-party fair-trade associations, but direct trade doesn’t have a legal definition. Each company determines what direct trade means for them. Direct trade is not currently certified. Therefore, there won’t be a logo for direct trade on packaging. It can be difficult to tell the difference between genuine direct trade brands and brands who use the term for marketing purposes. It is a smart idea to visit the website of direct trade brands before you buy them.

Fair Trade vs. Direct Trade
Fair Trade Direct Trade
Third-party non-profit organizations regulate standards Individual companies can regulate standards
The main objective is to improve the lives of farmers, but it also has great quality. The main objective is to improve the quality of coffee, but also improve lives.
A logo for Fair Trade Certified Brands will be on the packaging At this moment, there is no logo or official certification for direct trade.

These are some direct-trade coffee brands:

Counter Culture Coffee
Stumptown Coffee Roasters
Intelligentsia Coffee
The Roasterie
Passenger Coffee
Square One Coffee

Before buying coffee, it is a good idea research companies and brands online. Coffee sourcing has an impact on the working conditions of farmers and the strength and quality of their communities. The more you know about a brand the better you will be able to provide your guests with a quality product.