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What’s so Fair about Fair Trade Coffee?
Coffee and Fair
Trade
Many coffee farmers around the world receive market payments
that are lower than the costs of production, forcing them into a cycle of
poverty and debt. Intensive coffee farming can also lead to pesticide pollution
and deforestation.
Fair Trade works to correct these imbalances by
guaranteeing a minimum wage for small producers' harvests and by encouraging
organic and sustainable cultivation methods. Fair trade farmers are provided
badly needed credit and assured a minimum of $1.26 per pound. In comparison,
the world price usually hovers around $1 per pound, but most farmers earn less
than 50 cents per pound since they are forced to sell to exploitative
middlemen. With the profits generated from receiving fair wages, coffee growers
can invest in health, education, and environmental protection.
Taking a step to buy fair trade coffee supports rather than
exploits coffee farmers in Nicaragua, Costa Rica, and around the world.
The Fair Trade
Org does not guarantee a floor of $1.26. They simply require buyers to buy at
30% to 50% above the Market price. For large companies, this means money for
them as the can end up paying $0.39 a pound and claim their coffee is Fair
Trade.
We on the other hand, deal with only those roasters that have a direct connection to the
farmers and plantations. We regularly pay between $1.5 and $2.5 per pound to
them. In turn, they change their farming practices to be sustainable and be
less of an impact on the environment, and to comply with the different Fair
Trade and Organic rules.
Fair Trade is:
A living wage for farmers. During an unprecedented slump in world coffee
prices, Fair Trade has become more important than ever.
A new model for business based on the "triple bottom line"—a fair deal for farmers and
workers, environmental sustainability, and profitability for all parties in the
chain of production.
An international movement with roots going back 50 years. TransFair USA is one of 17 national Fair
Trade certification initiatives in Europe, North America and Japan. Together,
these initiatives make up the Fair Trade Labeling Organizations International, www.fairtrade.net.
A guarantee that clearly defined criteria were met in the production and trade of
agricultural commodities. The international Fair Trade criteria for coffee, the
leading Fair Trade Certified product worldwide, are:
A Fair Price: Producer cooperatives are guaranteed a fair
price
Democratic Organization: Producers must belong to cooperatives or
associations that are transparent and democratically controlled by their
members
Direct Trade and Long Term
Relationships: Importers
must purchase coffee directly from Fair Trade certified producers and agree to
establish long- term and stable relationships
Access to Credit: When requested by producers, importers must
provide pre-harvest financing or credit (up to 60% of each order)
Environmental protection: Producers must implement integrated crop
management and environmental protection plans. Through price incentives,
producers are encouraged to work towards organic production
https://www.transfairusa.org/content/works/wrk_index.jsp
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