Fair Trade Coffee: Does It Matter?

Fair trade is a buzzword that’s been flying around for almost two decades. For those unaware, there is a difference between fair trade and regular trade. One of the questions often raised by critics and newbies alike is “Are fair trade farmers treated fairly in the industry?”

To answer this question, we’re going to take an inside look at the fair trade coffee industry.

What is Fair Trade and Why Does it Matter?

Fair trade is the process of farmers selling a product they grew to a buyer in that industry. In this case, the industry we’re looking at is coffee. Farmers are paid a higher price for the product if they sell it within fair trade parameters.

Fair trade parameters include sustainable growth practices. This is important because how crops are grown directly impacts the health of the planet and its people. Fair trade growers and buyers understand that. They care about the future of the world and their commerce practices reflect that.

Farmers have to meet strict requirements for their product to meet the fair trade standard. And before you think this is making it hard on the farmer, it actually benefits them in the long run. This assures not only the buyer that the product is good, but also you, the consumer. And the farmer can take pride in knowing that they have produced a high quality crop.

Who Are the People Farming Fair Trade Coffee?

Fair trade coffee farmers live all over the world. But the majority live where coffee is most widely grown. This includes most of Latin America, as well as several countries in Africa. Most coffee farmers live in rural locations where they own plenty of land to grow their crops.

One of the downsides to living in a rural community is lack of access to healthcare and education opportunities. Not only that, but many coffee farmers in rural areas can’t directly sell their product. And because of this, they are often unaware of the true value of their product. This encourages middlemen and local swindlers to cheat the farmers by trying to buy the product for less than it’s actually worth.

This is where the fair trade industry comes in.

How Are Farmers Impacted by Fair Trade?

Remember those swindling middlemen who try to take advantage of the rural farmers? Once the fair trade industry steps in, it’s highly unlikely that this will happen.

If a coffee farmer signs up to grow their product according to fair trade standards, they’re guaranteed a good price for the product. And they also are often offered a long-term contract for their product.

Long-term contracts benefit the farmer because they have a more stable income. They are able to invest more into themselves, their families, and their communities. This helps break the cycle of poverty that many rural farmers find themselves in.

We’ve talked a little about how farmers benefit from this process. Let’s take a look at their families, as well. In the fair trade industry, farmers and their families can see:

• Reduced child labor. Child labor is prohibited in the fair trade industry. Because of this initiative, children are more likely to attend school. They can enjoy a childhood similar to children in developed nations.
• Gender equality. Women have more access to the resources they need to develop and maintain their fair trade farms. This gives them more opportunity. Women are also treated better in the fair trade market.

Yadira Orozco, a female grower in Colombia, applauds the fair trade farming community. She and other women have benefited from fair trade prices for their product. They have been able to form a group of female entrepreneurs and invest in their own business education. According to Orozco, “…with Fairtrade we have been able to follow courses and also train the women.”

How You Can Make a Difference in Fair Trade Coffee

It might sound like these fair trade farmers live far away from you and you don’t have any interaction with them at all. Believe it or not, you see them every day. Well, if you’re like most Americans, that is.

According to the National Coffee Association, 63% of American adults drink coffee every day. In other words, you interact with coffee farmers every time you pour a cup of their delicious product. Which is every day, right?

So don’t think for one second that you are isolated from the person who grew those coffee beans for you. In fact, it’s quite the opposite! And how and where we buy those beans from matters. You, the consumer, have a lot of power in how you spend your money.

Ever heard the saying, “You vote with your dollar?” This is exactly what you do every time you buy something at the store. Your money matters. And how you spend it matters.

The way consumers choose to spend their money directly impacts the planet and its people. If you buy a $5 bag of coffee from Walmart, you’re probably not doing much to help the person that grew the coffee. But if you buy fair trade coffee, you’re not just getting a quality product that meets a high set of standards.

You’re helping to keep a child in school. You’re helping a widow to feed her family without having to worry about getting taken advantage of. You’re helping farmers lift their families and their communities out of poverty.

How Will You Vote?

According to Daniele Giovannucci, president of Committee on Sustainability Assessment (COSA), “Without an economic foundation, it is difficult to conceive of thriving farming communities that can be the basis for a diversified and growing industry.”

A $5 bag of coffee from Walmart isn’t going to help coffee farmers build thriving farming communities. It’s not going to set the farming communities up with a solid economic foundation. Instead it’s going to keep them locked in a vicious cycle of poverty.

But it doesn’t have to be that way.

You, the consumer, have the power to vote with your dollar (or your $5).

You can put the cheap bag of coffee back on the shelf and opt for the one that, yes, is a few dollars more. But that couple of extra bucks and that fair trade certification label help the farmer in Guatemala put food on his table. It helps the grower in Ghana keep her kids in school.

It helps communities go from barely surviving to thriving.

It helps break the cycle of poverty.

It creates hope.

So how will you vote?