Fair trade coffee
Fair trade coffee is a type of coffee that is purchased directly from the growers for a higher price than standard coffee. The goal of fair trade is to reduce poverty for farmers and workers in developing countries. This is achieved by providing them with a stable income which can be used to improve their living conditions, education, and healthcare.
History
The concept of fair trade originated in the 1940s, but it wasn't until the late 1980s that the first fair trade coffee was introduced. The Max Havelaar Foundation, a Dutch organization, launched the first fair trade certification for coffee in 1988 in response to a crisis in the global coffee market.
Principles
Fair trade coffee is based on a set of principles that aim to make trade more equitable. These principles include:
- Paying a fair price: Fair trade guarantees a minimum price for coffee, which helps protect farmers when market prices fall.
- Direct trade: By cutting out middlemen, fair trade allows farmers to sell directly to importers, which can result in a higher price for their coffee.
- Democratic and transparent organizations: Fair trade farmers and workers are supposed to be part of decision making processes.
- Community development: Fair trade premiums are often invested in social, environmental and economic development projects.
- Environmental sustainability: Many fair trade standards promote sustainable farming practices that protect the environment.
Certification
Fair trade coffee is certified by various organizations, such as Fairtrade International, the Fair Trade Federation, and the Institute for Marketecology (IMO). These organizations set the standards for fair trade and inspect the producers to ensure they are adhering to these standards.
Impact
The impact of fair trade coffee is a topic of ongoing debate. Supporters argue that it provides a higher income for farmers, which can improve their living conditions and contribute to community development. Critics, however, argue that the benefits are often not as significant as they are made out to be, and that fair trade can sometimes lead to dependency.
See also
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Contributors: Prab R. Tumpati, MD