Today, with world commodity prices far below the costs of production, Fair Trade provides a critical alternative to the “free trade” market and creates a more equitable and stable trading system.
The Fair Trade floor price and direct market access reduce the devastating effects of the boom and bust cycle on farmers and their organizations. The result is stronger farmers’ cooperatives, independence from exploitative middlemen, and more revenue for social development and environmental conservation programs.
TransFair USA, a nonprofit organization, is the only independent, third-party certifier of Fair Trade products in the United States. Through regular visits to Fair Trade farmer cooperatives, TransFair verifies that the farmers who produced Fair Trade Certified™ products were paid a fair price.
International Fair Trade Criteria for Coffee
- Fair Price
For washed Arabica, the highest quality coffee, the Fair Trade minimun price is set at US $1.51 per pound in Africa, Asia, Mexico, and Central America, this also includes an additonal $.20 for coffee that is certified organic.
- Direct Trade and Long-Term Relationships
Importers 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.
- Access to Credit
When requested by producers, importers must provide pre-harvest financing or credit (up to 60% of each order).
- Environmental Protection
Producers must implement integrated crop management and environmental protection plans. Through price incentives, producers are encouraged to work towards organic production.
