Twenty-five million families who produce coffee are now struggling just to survive. Though the coffee they grow can go for $1 a cup, few of them make that much in a day.   

Fair Trade Certification is an alternative approach to the coffee market that puts more of the profit in the hands of coffee farmers. Coffee companies that import and roast Fair Trade coffee guarantee farmers a minimum "floor price" of $1.26 per pound. This can be as much as a three- or even four-fold increase in what some farmers might otherwise receive for their crop. This increase is possible because the Fair Trade system eliminates a number of middlemen where much of the profit goes in the open coffee market.

 How does the farmer benefit from fairly traded coffee?

 Fair Price: Farmer cooperatives are guaranteed a fair price. The floor price is $1.26 per pound or 5 cents above the prevailing market price or $1.41 for certified organic coffee or 15 cents above the market price.  

Direct Trade and Long-Term Relationships: Imported 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, not exploitative, oft-politician-led companies.

 Production reliability: When requested by producers, importers provide pre-harvest financing or credit to farmers. Fair Trade organizations are committed to provide credit so farmers can plan their cultivation, which builds a reliable source of coffee beans. 

Environmental Protection: Producers must implement integrated crop management and environmental protection plans. Through price incentives, producers are encouraged to work towards organic coffee production.  

 Social-economic benefits:  Democratically-run farmers’ cooperatives share the profits from their harvest and invest it in community improvements, such as clean water, medical clinics, and schools. 

Community: 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™ coffee, consumers and coffee companies are supporting a socially just system that makes the world a better place.

Sources: www.maketradefair.com