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Fair Trade Coffee: A Brief Guide
Fair trade certified coffee is an important part of building a sustainable and equitable coffee industry.
Published July 25, 2022
Asharita D'Silva
Coffee experts@Era of We
Browsing through the coffee aisle in the supermarket or online, you may come across various certifications on the package. One of the most recognizable certifications is Fairtrade. Fair trade coffee is one of the many crops that can be certified fairtrade and this certification carries a number of implications and reflects changing attitudes in the coffee industry in particular and the agricultural sector as a whole.
But does it mean when we say Fair trade coffee beans? Is it the same as organic coffee beans? Does it really matter? To find out, let’s break down what it means and how fairtrade certifications work.
What Is Fair Trade Coffee?
Fair trade coffee beans are those coffee beans that meet the standards of the Fairtrade Organization. The fundamentals of these standards place importance on transparency, trust, and open dialogue. The simplest way to look at this is that fair trade coffee is a partnership between coffee farmers and coffee roasters. The biggest draw for fair trade coffee is that you can be assured that the farmers have been paid a fair price for their product.
The Fairtrade Labelling Organization (FLO) governs the overall fairtrade system. They set international fairtrade standards, facilitate and develop fairtrade business, and advocate for fair business practices and justice in the system.
Fairtrade certification addresses the pricing crisis in coffee and attempts to balance the scales and ensure a fair wage for coffee producers. In brief, here is a summary of some of the major features of fairtrade certification:
- Minimum price- This keeps prices stable for farmers. When market prices drop, fairtrade farmers are still guaranteed a minimum price for their produce.
- Fairtrade premium- The fairtrade premium is a bonus paid to farmers above the price of their goods. This money is used for business and social projects.
- Fairtrade standards- Fairtrade certification requires certain environmental, social, and economic standards to be met. This includes sustainable farming, workers' rights, and quality standards for coffee.
History of Fair Trade and Coffee
The history of coffee trading has always been one of imbalance. Before the conception of fair trade policies, the trading price of coffee was set by the International Coffee Organization, based on the International Coffee Agreement of 1962. This agreement controlled the trade of coffee between different countries with the goal of avoiding surplus supply which would destabilize the price.
Following a major frost in Brazil that raised global coffee prices, the agreement was renegotiated in 1976. The agreement was redrawn once again in 1984 to include provisions for a coffee trade database and with tighter regulations on import and export.
Fast forward to 1988, and the first fair trade certification was launched in the Netherlands. This concept arose out of a dire situation in the coffee world when coffee supply exceeded the demand which flooded the market. The lack of price quotas from the International Coffee Organization only worsened the situation. This fair trade certification was named “Max Havelaar” after a Dutch fictional character who opposed the ill-treatment of coffee farmers by Dutch colonizers in the East Indies. Following this, a number of fairtrade certifications were launched in the 1990s and 2000s.
Organic Coffee Beans vs Fair Trade
You may often see these labels on coffee bags, with some being both fairtrade and organic-certified. But these two certifications are not the same thing. Organic certification and fairtrade have different processes and requirements but at their core, they both value the ethical and sustainable production of coffee.
The simplest way to think about the difference between fairtrade coffee beans and organic coffee is that organic certification is more concerned about agricultural practices and management of natural resources while fairtrade certification oversees trade between different stakeholders in the coffee supply chain.
Specifically, the criteria for organic certification control how much human intervention can be involved, particularly the use of chemical pesticides. Artificial pesticides pose a tremendous environmental risk by polluting soil and water and reducing biodiversity. Instead, organic coffee bean farmers focus on raising strong plants and using natural pest control. In addition, organic certification oversees animal welfare on farms and the use of artificial fertilizers. To summarize, these are the basic criteria for organic coffee beans:
- No artificial pesticides- This is to protect the soil, water, and local biodiversity.
- No artificial fertilizers- Artificial fertilizers pollute water bodies.
- Animal welfare- animals on farms must have access to outdoor pastures, be fed a natural diet as much as possible, and routine use of antibiotics must be avoided.
- Non-GMO crops- to be organic certified, the crops must not be genetically modified.
Ideally, organic certification aims to keep agriculture as ‘natural’ as it can be. By avoiding the use of pollutants and taking care of natural resources, organic certifications are working towards a more holistic approach to cultivation.
Is Fair Trade Certified Coffee Important?
Fair trade is more than just a trade agreement- it considers some major issues in the coffee industry (and the agricultural sector in general) including promoting fair wages, equitable trade, and sustainability. These are some of the important areas that fairtrade organizations are focused on:
- Fighting global poverty by promoting fair and sustainable income for farmers
We love coffee and it’s only fair that we ensure the farmers that grow our beloved coffee are able to have a good life. Currently, many coffee farmers and workers face abject poverty and this is very discouraging for future generations who will consider coffee farming not worth the effort. If we want to continue drinking good coffee, we need to ensure there’s some hope for future coffee producers. This begins by paying them fair prices for their hard work.
- Building equitable partnerships between producers and purchasers
A majority of business practices skew heavily in favor of purchasers rather than producers, meaning producers are paid less and benefit less from trade. Fairtrade aims to balance this equation so that producers are not left in the dark. Both the Fairtrade premium and the guaranteed minimum price are geared towards protecting farmers from price fluctuations while helping them invest in the future of their farms and communities.
- Promoting justice on an individual and community level
When farm workers are paid a living wage for their work, they go on to spend and invest that money in their community and local economy. This can be in the form of education, improved standard of living, better healthcare, and much more. It’s not just about paying a fair price- it's about helping communities grow and prosper.
- Reducing the environmental impact of bad business practices
When we focus purely on churning out a profit at any cost, we lose sight of the environmental and social sacrifices that go along with it. Fairtrade certifications put sustainability back on the table, and while it’s not the same as organic certification, the two often go hand in hand.
You can buy fairtrade coffee from many stores, roasters, and cafés. Some great fairtrade coffee brands include Ethical Bean Coffee and Kicking Horse Coffee.
But has fairtrade certification made a real-world impact? Since 1998, nearly half a billion dollars have gone directly to fairtrade producers. Over a billion farmers and workers have directly benefited from fair trade schemes. While fair trade is far from perfect, it’s a step in the right direction and is an important part of making coffee farming a viable livelihood. If we want to ensure a bright future for the coffee world, we must start by securing a future for the land and for the farmers.
At its core, fairtrade is about paying an honest price for honest labor, and what’s not to love about that?
About the author
Asharita D'Silva
Join me in discovering the wonderful world of coffee! As a writer, coffee is my fuel and newfound passion. I love writing about new coffees, sustainability, and coffee culture around the world. I'm always discovering new things about coffee and the industry, which I share with the great community here at Era Of We.
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