WHAT IS FAIR TRADE COFFEE?
The International Fair Trade Criteria for Fair Trade Certified(tm) Coffee:
Fair Price: Farmer cooperatives are guaranteed a fair price. When the market price is low, farmers receive a minimum of $1.26 per pound for conventional coffee and $1.41 for certified organic coffee. When the market rises above the floor price, farmers receive five cents per pound above the prevailing market price for conventional coffee, and 15 cents above the market price for coffee that is certified organic.
Direct Trade and Long-Term Relationships: Importers must purchase coffee directly from certified Fair Trade producers and agree to establish stable, long-term relationships.
Democratic Organization: Farmers must belong to cooperatives or associations that are transparent and democratically controlled by their members.
Access to Credit: When requested by producers, importers must provide pre-harvest financing or credit (up to 60 percent of each order)
Environmental Protection: Producers must implement integrated crop management and environmental protection plans. Price incentives will encourage producers to work towards organic production.
As mentioned, Fair Trade organizations are also committed to provide credit so farmers can plan their cultivation, which builds a reliable source of coffee beans. Democratically-run cooperatives share the profits from their harvest and invest it in community improvements, such as clean water, medical clinics, and schools.
Fair Trade is designed to help small-scale coffee farmers increase their incomes and improve the prospects of their communities and their families. It also offers consumers a way to channel their purchases into socially responsible products that support families who might not otherwise get a fair deal. By supporting Fair Trade Certified(tm) coffee, consumers and coffee companies are also supporting a socially just system that makes the world a better place.
For more information, visit OxFam America's Fair Trade Coffee news and publications.