Fair Trade Coffee

www.wikipedia.org


Fair Trade is a non-profit organisation set up to protect vulnerable coffee farmers from sudden price drops as the price of coffee is very unpredictable. The unpredictability of prices can be due to a number of reasons such as an outbreak of disease, bad weather and large harvests in major coffee producing countries (e.g. Brazil). Fairtrade protects farmers by offering a Fairtrade Minimum Price which protects farmers when prices go below a level where it is just not feasible to produce the coffee. If the market price is higher than this Minimum Price, then farmers are free to negotiate with buyers for more money. Coffee farmers receive a Fairtrade Premium of 20 cents per pound of conventional coffee produced and an additional 30 cents per pound if it is organic coffee. At least five cents is dedicated to improve production and/or quality.







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