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FAQs on Fair Trade coffee |
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What is Fair Trade? Fair Trade is a trading partnership based on dialogue, transparency and respect that seeks greater equity in international trade. It aims for sustainable development for excluded and disadvantaged producers. It seeks to do this by providing better trading conditions and raising awareness. What are the goals of Fair Trade?: 1. To improve the livelihoods and well-being of producers by improving market access, strengthening producer organizations, paying a fair price and providing continuity in the trading relationship. 2. To promote development opportunities for disadvantaged producers, especially women and indigenous people, and to protect children from exploitation in the production process. 3. To raise awareness among consumers about the negative effects on producers of international trade so that they exercise their purchasing power positively. 4. To set an example of partnership in trade through dialogue, transparency and respect. 5. To campaign for changes in the rules and practice of conventional international trade. 6. To protect human rights by promoting social justice, sound environmental practices and economic security. But I don’t drink coffee… It’s not about coffee, it’s about economic justice for farming families..
What is FLO? FLO (Fairtrade Labeling Organizations International) is the international standards body which establishes and monitors Fair Trade criteria. Producers who meet the criteria can be registered with FLO. Brands which use Fair Trade products from FLO-registered producers are licensed to use the Fair Trade seal. What is the Fair Trade Certified™ Label? The Fair Trade Certified™ Label is the one independent consumer guarantee that goods on sale in mainstream retail outlets have been fairly traded. TransFair USA awards the label to importers and manufacturers in this country to document business practices and provide a reliable consumer guarantee that coffees, teas and chocolates have been purchased from producers according to international Fair Trade criteria. TransFair USA checks that Fair Trade criteria have been adhered to. The international Fair Trade criteria for coffee, the leading Fair Trade Certified™ product worldwide, guarantees: Fair Prices: 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. 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. ü I hear about all these different names for coffee, like bird-friendly, and shade grown, and organic, and fair trade… What’s the difference? Organic means that it’s certified by a third, independent party. It basically ensures that the coffee is grown without chemicals. The certifying entities have begun to include criteria regarding shade and other sustainable techniques.
Shade-Grown means that the coffee is grown beneath an intact canopy. There is a gradient of coffee production from no shade (full-sun) mono crop to full-shade (often including old growth forest species). The vast majority of organic and fair trade farms grow beneath some level of shade. The only shade certification (Smithsonian Institute) is also referred to as Bird-friendly, because it provides essential habitat for birds.
Fair Trade works on a social standard, guaranteeing that producers earn a living wage. Many FT farms are also organic, and some are certified shade grown.
ü How do we know that Fair Trade actually provides a living wage? Even though the standard wage of $1.26 per pound ($1.45 if it’s organic) for FT coffee differs in its real value in different places, it has been judged to be a universal minimum for basic human needs. Much research shown that farmers in FT cooperatives are more secure in their livelihoods, are able to better provide for their families, and even develop their communities with basic provisions such as schools and infrastructure.
ü I’ve heard that there’s a crisis with coffee, what’s this all about? There are two main factors that are contributing to the precipitous decline in international coffee prices:
ü I’ve heard that Fair Trade coffee isn’t as high of quality as gourmet coffees like Starbucks, is that true?
That’s not exactly true… Fair Trade utilizes and depends on the gourmet coffee market. The quality of the coffee is getting better every year, as there has been substantial investment in improvement techniques, including empowerment of small-scale producers through on-site quality testing, so growers understand the flavor dynamics of their product. Most will agree that the typical FT coffee far outstrips Mr. Starbucks, and certainly outstrips what the student Union dining Services provides.
How are the criteria for Fair Trade Certification determined? The criteria are determined by TransFair USA. TransFair USA, a nonprofit organization, is the only independent, third-party certifier of Fair Trade practices in the United States. Through regular visits to Fair Trade farmer cooperatives conducted by Fairtrade Labeling Organizations International (FLO), and partnerships with US companies, TransFair verifies that farmers who produce Fair Trade Certified™ products are paid a fair price. Transfair USA, together with other members of the Fair Trade Labeling Organizations International, conduct extensive research in the main producing countries of a particular product. They interview many worker representatives and farmers' organizations to identify the problems faced by these groups. Criteria are developed in order to address these issues. Does TransFair USA sell Fair Trade products? No. TransFair USA does not sell fair trade products, only certifies them. TransFair USA is the only independent organization certifying Fair Trade products in the United States. Fair Trade assures quality from crop to cup with strict criteria for social and environmental standards backed by an internationally recognized monitoring system. The Fair Trade Certified™ price ensures that family farmers receive a fair price—significantly higher than average—for their exceptional coffees, enabling millions of farming families worldwide to stay on their land, protect their communities, and keep children in school. Does the Fair Trade Certified™ Label consider environmental concerns? Yes. Environmental concerns are considered as part of the Fair Trade criteria. More than 81% of Fair Trade Certified™ coffee in the US is certified organic, while 80% of Fair Trade Certified™ coffee in the US is also shade-grown, which protects the natural flora and fauna in coffee growing regions. Fair Trade also encourages farmers to use sustainable post-harvest processing, keeping local water clean and free of chemicals. Does Fair Trade Certified™ coffee cost more to consumers or coffee companies than similar, non-Fair Trade brands? Not necessarily. Fair Trade product manufacturers guarantee a minimum price to cover the cost of production and a basic living wage, plus a premium if the world price exceeds this value. Nevertheless, when you compare a high quality Fair Trade coffee with a similar non-Fair Trade coffee, there is usually no more than a few pennies' difference. That said, prices also depend on the pricing policies of each roaster and retailer on the world market price of coffee. The retail price of Fair Trade coffee varies, but it is generally in the range of other high-quality coffees. Since most Fair Trade Certified™ coffee in the US is also certified organic, which commands a higher price, Fair Trade consumers often pay about the same price as regular organic coffee. Some high-end roasters claim that they will pay a premium price for all of their coffees, which would mean that Fair Trade coffee does not cost more—the difference is in how much the farmer gets. But the current price crisis in the coffee industry may make it harder for consumers to find Fair Trade coffee at a comparable price to other gourmet blends. Today most coffee is being imported at substantially below the Fair Trade floor price, so companies are paying more for Fair Trade Certified™ beans and may pass the cost onto consumers. Still, a fairness guarantee is worth a few cents more per cup. What is the difference between Fair Trade Certified™ and conventionally traded coffee? Fair Trade guarantees producers a fair price for their product (at least $1.26 per pound; $1.41 per pound for certified organic) that enables farmers to cover the costs of production, reinvest in their farms and meet their families basic needs including health care and education. Fair Trade creates direct links between producers and importers, bypassing various intermediaries who take a share of the profits. Fair Trade is not charity—it is a market-based approach to increasing small farmer self-sufficiency and generating more resources for community development and environmental conservation. In contrast, conventionally traded coffee is part of the larger "free trade" system, favoring larger producers and multinational corporations, often at the expense of local communities and the environment. Under conventional trade, coffee prices are determined by a volatile international market. The world market price often falls below a farmer's cost of production and leaves farm families in a struggle for survival. Even when the world market price is relatively high, family farmers get a small fraction of that price, with the lion's share of profits going to intermediaries. If an importer pays at least $1.26/lb price for coffee, does that mean the coffee is considered Fair Trade Certified™? No. The importer would have to be certified by TransFair USA and import the coffee from cooperatives that are listed on the international Fair Trade register maintained by the Fair Trade Labeling Organizations International (FLO). Furthermore, simply paying $1.26/lb or more to a coffee exporter does not guarantee that the farmer received a fair price for the harvest. In fact, there is very little "trickle down" to the farmer in conventional trade, so most of that price likely went to middlemen. The Fair Trade Certified™ label assures consumers that the farmers got a fair deal and received most of the export price. If you see the Fair Trade Certified™ label on one type of coffee a company offers, does that mean that all of that company's coffee is Fair Trade Certified™? No. Only the coffee bearing the Fair Trade Certified™ label is certified by TransFair USA. Is the quality of Fair Trade Certified™ coffee comparable to other gourmet coffee? Fair Trade Certified™ coffee is often the same high-quality coffee that gourmet coffee companies are purchasing through conventional mechanisms. In addition, by guaranteeing farmers a fair price, Fair Trade certification enables farmers to invest further in quality improvement and management programs. Does Fair Trade Certified™ mean organic too? Although the two certification systems are distinct, more than 80 percent of the Fair Trade Certified™ coffee presently in the US market is also certified organic. Fair Trade coffee is always grown by small-scale farmers who tend to grow coffee in the shade, avoid agrochemicals and take meticulous care of their crops. Revenues from Fair Trade are often used to train farmers in organic techniques, such as composting and mulching, and to promote eco-friendly processing that uses less water. Is Fair Trade Certified™ coffee also bird-friendly or shade grown? Although the terms are not synonymous, most Fair Trade Certified™ coffee is also shade grown, bird friendly coffee. This is because all Fair Trade coffee is grown by family farmers, most of who own traditional, shaded farms that host a diversity of birds. These shade trees also bear fruit, providing additional food or income for farmers and their families. How do I find Fair Trade Certified™ coffee? Fair Trade Certified™ coffee is sold in 15,000 retail locations nationwide. Look for the Fair Trade Certified™ Label on the product and if your store doesn't have it, ask the Manager to stock it! Click here to find Fair Trade Certified™ coffee in Tucson. If Fair Trade Certified™ coffee is not available at your favorite locations, ASK FOR IT! It is important to ask for Fair Trade Certified™ coffee from your local restaurants and supermarkets, to cafes, gas stations, and your workplace. Currently only 30% of all Fair Trade Certified™ coffee is being sold as fair trade; the remaining 70% is sold on the conventional market. To increase the awareness, availability, and demand for fair trade, it is important that we create a consumer awareness reaching into all aspects of our communities. What products other than coffee are Fair Trade Certified™ in the United States? Tea and cocoa also carry the Fair Trade Certified™ label in the United States. Fair Trade products are available in major supermarkets, health and food stores. I already buy Fair Trade Certified™ coffee. What else can I do? There is a lot you can do! To spread awareness, it is important to ask for Fair Trade Certified™ coffee wherever you go, to tell your friends and family about Fair Trade, and to continue to share this message. Together we are building a more equitable society that can end poverty among coffee farmers. Sources: Oxfam America reports, maketradefair.com, Trans Fair USA, I.C.O., F.L.O.. |
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