Global Coffee Prices – And Is Fair Trade Fair?

Most people assume, once they look into it, that Fair Trade coffee is a good thing because it guarantees a base level price to coffee growers – and a price that is typically above the base market level. Sounds great, right?

And for the most part, it is. But there is a growing questioning of the validity of the fair trade movement. Here’s a recent note from Mother Jones. That sounds bad, but the problem is that when you look into it it also doesn’t really sound true.

Here’s a more detailed summary of how the Fair Trade movement works for coffee. Sounds a bit better? Well, maybe.

Here, from the New Scientist is a look at Fair Trade from the point of view of some African growers, who clearly aren’t fooled by very much.

So who can we trust? Actually, we can trust some of tthe smaller vendors who will make use of Fair Trade sometimes, but are far more likely to negotiate directly with the grower themselves, rather than through the normal big cartel channels. These growers take part in small and specialty auctions that can result in prices as high as even $100 per pound for the grower. Click around here, at this internet specialty coffee auction site and see who buys and what they pay!

Take a close look at your coffee seller and if all they can tell you about the grower is that ‘it is Fair Trade so they get more money’ then maybe they are only giving lip service. But if they can talk about the growers as people and about how they go visit every year to look at the crop and buy directly, then you can be more confident that the grower is getting a fair price. Plus you WILL be getting better coffee from someone who cares.

Related posts:

1. Good news, bad news for coffee prices.
2. Our Guess – Coffee Prices are going up.