So what is Fair Trade?

Simply put, fair trade is a minimum price. It is also a movement.

If a product is fair trade certified it means that the farmer has received at least the minimum "fair' price per pound of coffee sold. The current fair trade price is $1.26 per pound, and $1.41 per pound of organic coffee. The conventional/free market price is much lower, usually less than 50% of the fair trade price, and is also more volatile.

A fair trade certified product also means there is a long-term relationship between buyer and seller. This relationship allows for the farmer to have a consistent income source and the buyer to have a consistent product. This also allows for the buyer to have more control over the growing and selection process, such as organic, shade grown, and bird friendly methods. The producer learns how to grow a higher quality, more environmentally friendly product which they can demand more money for. The result of this mutually beneficial relationship is a superior coffee.

Finally, fair trade certification often means that the coffee growers form cooperatives, to increase their collective bargaining power, and mitigate their risks in production each year. Buyers often commit to paying a portion of final profits to the farmer so that they can invest in their business or community development projects.