Free Trade Coffee: What it means and where can I find it?
84Free Trade
Free trade is a market model in which the flows of goods within or between countries continues without the intervention of government restrictions such as: tariffs, taxes etc. These impositions may increase the price of the good to the consumer or producer. According to David Ricardo's argument of comparative advantage free trade without the intervention of government will benefit both the producer and consumer because the sides have different opportunity costs. Opportunity cost is the price you pay for doing one thing instead of another. Therefore those with the lowest opportunity cost will produce the good making it cheapest for the consumer.
For more on David Ricardo: http://en.wikipedia.org/wiki/David_Ricardo
For more on History and how free trade has evolved:
http://en.wikipedia.org/wiki/Free_trade
Fair Trade
Fair trade is an organized social movement aiming to alleviate global poverty and promote sustainability. The movement believes in paying what it feels to be the fair price for a good. The fair price helps ameliorate the areas social and environmental standards to helps sustain the production of the good. Besides its social aura some critics see it as a type of subsidiary actually getting in the way of free trade. Fair trade coffee has been designed to assist poor coffee farmers that are producing high quality gourmet/organic coffees. More on Fair Trade: http://en.wikipedia.org/wiki/Fair_Trade#Rise_of_labelling_initiatives
Fair Trade Labeling Initiatives
There was no way to start the fair trade initiative until the consumer could see a visual identifier for a fair trade product. With the labeling the consumer could understand that the product being paid for is helping sustain the product and the community around the product.
The Dilemma
Many consumers are not seeing dropping prices in coffee however the producers are getting $.50 / pound (Aug. 2001). Thus the retailers are getting the profit while the producers of the coffee are not. Fair trade coffee arose from the consumers' growing concern for the fair trade coffee producer. It has become and important issue for coffee lovers and connoisseurs to support the local farmers. They can do so through fair trade coffee. Otherwise many coffee growers in Asia, Africa, Latin America and the Caribbean are forced to abandon their ways of growing coffee for cheaper methods and thus sacrifice the coffee's quality.
Shade: Major Issue for Coffee Growth
The best conditions for coffee growth is a shade abundant plantation. Beans grown in shade mature more slowly. This allows the bean to create more natural sugars, less caffeine and a fuller flavor. Abandoning these methods for faster sun -cultivated methods, decrease the depth of flavor in the coffee been. In addition sun cultivation destroys vast forest lands. In addition vast amounts of fertilizer and pesticides need to be utilized.
Shade growing benefits
Fair trade supports the shade coffee growing method. The benefits are better coffee beans, less de-forestation, better soil that can be used in future generations, environments for songbird communities and the communities of coffee farmers.
Fair Price for Quality
The idea of fair trade is to pay the farmer directly avoiding the middle man. Thus the coffee connoisseur would pay directly for quality instead of for transaction fees. Since many coffee companies get their coffee directly from the producer there is no negative effect on the consumer's wallet, but instead on that of the middle man. By buying fair trade coffee the consumer is helping the farmer sustain his way of life and that of the environment that allows for the better coffee production.
Where can I buy Fair Trade Coffee?
As consumers especially are getting more aware of their impact on the world they are demanding that people and our environment are treated with respect. Thus more stores are giving the consumer an option to buy fair trade items not only coffee. In New York City for example there is Whole Foods, Trader Joes, Eli's etc and other gourmet not terribly expensive stores that offer the consumer the choice to buy fair trade goods.
Some options online to buy fair trade Coffee
http://www.georgettes.org/store/fair_trade.html?gclid=CMSilbGE6JMCFQrPGgodWFzZWA
http://coffeebeandirect.com/fair-trade.php?gclid=CJrZn7SG6JMCFQNHFQod43r4Vw
http://www.womensbeanproject.com/online-store-organic-fair-trade-coffee.html
http://www.globalexchangestore.org/coffee.html?gclid=CNSiqfeG6JMCFQOjFQodmEXPVQ
More facts and interesting stories on Coffee
Enjoy that cup of free trade coffee with the understanding that you are contributing.
CommentsLoading...
You are welcome :-)
I was more interested in buying good quality coffee that was produces in a country which does not impose immoral trade tarriffs or duties and where neither the producer or retailer engage in any form of equally immoral artificial price fixing, including "fair" trade schemes. As such, your article is the opposite of what I wanted. Can you help with my question?
Imagine my surprise as I searched for info on free trade coffee to find a hubpages article! Congrats on showing up #3 on my google search! I'm setting up a coffee project for my community and this has been a help. Thanks...
very interesting, traceability and transparency in producing countries is an important issue for the "coffee world"
Great information on Fair Trade coffee. For those who take the time to seek out products supporting the Fair Trade movement, it will make it more obvious to other companies that they need to get involved.
Thank you for clarifying exactly what this is
Great hub!
I also wanted to say thank you to the author of this article. It is great because it brings about conversation and a forum to share info and ideas. The more the public knows, the better for the industry. So many roasters from across the country, not just the ones on our site, are really so loving and conscientious and are trying to do their best as global citizens in supporting the farmer. It takes a lot of money and time for a roaster to travel to origin and develop these relationships. It is something many aspire to do but can't. People are generally good and there really is a growing trend for roasters to want to make a difference in the world by how they buy their beans. Through information, the public will start asking questions about where their coffee is sourced and when that becomes a question that the public as a whole demands an answer to, then companies buying practices will change to appease the educated public.
I wrote an earlier post, previous to my last one that somehow got lost. I wanted to raise the point that Fair Trade in no way is an indication of quality. It could be the worst tasting bitter coffee ever and have that certification. It all depends on the roasters. While it is good that Fair Trade exists, it is really about how much a farmer is compensated- the minimum that farmers should be paid for their coffee.Quality is not really part of the equation. In reality, in that business model there is no real reward for farmers to really excel and go the extra mile to produce amazing coffee, which takes a lot of time, money, patients and TLC.... Direct Trade and Relationship coffees are the most ideal and what we really try to promote on our website. A Relationship is created between Farmer and Roaster. The roasters travel to origin to maintain this relationship and the farmer is compensated for their hard work and paid based on the quality of the coffee and mico-lots they produce, not quantity. Farmers can make 3 times or more the price paid for fair trade. This is where the industry needs to be moving to. Then the quality of coffee the public will drinking will be the best and the farmer will not just survive but prosper. Having more control over their destiny....Having pride in their work and the quality they produce, which they are rewarded for. As stated before, the public needs to be educated and start casting their vote with their dollars to support roasters who are not only producing amazing coffee but also actively making a difference in the lives of others across the world. That is the fight we take on every day in the specialty coffee world. We need the coffee buying public to join us.
Speaking of educated...Please excuse my misspelling of the word "Patience." Typing jacked up on caffeine is dangerous!
smiling cat 3 years ago
Thanks for answering my request. This is a great article. I am glad you mentioned fair trade - that is what I wanted to know about. Thank you!