EthicalCoffeeFair Trade certification
What is Fair Trade coffee?
Fair Trade is a certification granted in the United States by TransFair USA, a non-profit organization that began certifying coffee in 1998 and has since included many other products, ranging from tea to chocolate to fruits and spices.
TransFair USA is part of FLO International, a 23-member international association of fair trade labelling organizations that develops the standards producers must meet to use the Fair Trade label, shown here.
What are the environmental standards?
Fair Trade standards encourage sustainable agriculture practices, but farmers do have some leeway. Most Fair Trade coffee is also certified organic, for example, but agrochemicals can be used by those not certified as organic. Most (but again, not all) Fair Trade coffee is shade grown under natural tree canopies.
Farmers must also follow sustainable practices for disposing of hazardous and organic wastes, maintain buffer zones around bodies of water, and minimize water use, avoid erosion and conserve the soil.
What are the labor standards?
The foundation of Fair Trade certification is the establishment of a minimum price. A guaranteed minimum price keeps small farmers in business and prevents the decay of rural communities based on agriculture. It enables more families to send their children to school, rather than having them work in the fields.
The current minimum prices paid for high-quality arabica coffee beans is $1.21 per pound in Africa, Asia, Mexico and Central America, and $1.19 per pound in South America. Beginning in June of 2008, the minimum payment will increase to $1.25 per pound. Another 20 cents is added if the coffee is also certified as organic. These prices are paid to the farmers' cooperatives, which then distribute profits after expenses. Not all coffee grown by small farmers meets the standards for these minimum prices.
Fair Trade farms must also meet labor standards such as paying a minimum wage to workers, allowing workers to organize, and ensuring health and safety standards.
What's the downside?
Until FLO International announced an increase in the minimum price in late 2007 (taking effect in 2008), the Fair Trade price paid to coffee farmers had not been increased since 1994, and some felt an increase was long overdue.
As with all these certification programs, costs can be difficult for small farmers. TransFair says most cooperatives pay annual certification fees that range from $2,500 to $10,000, though discounts are available for smaller groups.
Another common criticism is that only these cooperatives of small farmers can participate. Individual farmers, small or large, cannot get the certification on their own.
How does the coffee I buy get certified as Fair Trade?
Coffee producers form cooperatives that agree to meet the Fair Trade environmental and labor standards. FLO inspectors visit the sites to determine if the criteria are being met. Followup inspections are done annually.
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