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Coffee packages labelled "fair" on the lower right. Fair trade coffee is coffee that is certified as having been produced to fair trade standards by fair trade organizations, which create trading partnerships that are based on dialogue, transparency and respect, with the goal of achieving greater equity in international trade.
The fair trade movement fixated on coffee first because it is a highly traded commodity for most producing countries, and almost half the world's coffee is produced by smallholder farmers. [42] At first fair trade coffee was sold at small scale; now multinationals like Starbucks and Nestlé use fair trade coffee. [79]
Sustainable coffee is a coffee that is grown and marketed for its sustainability.This includes coffee certified as organic, fair trade, and Rainforest Alliance.Coffee has a number of classifications used to determine the participation of growers (or the supply chain) in various combinations of social, environmental, and economic standards.
Equal Exchange distributes organic, gourmet coffee, tea, sugar, bananas, avocados, cocoa, and chocolate bars produced by farmer cooperatives in Latin America, Africa, and Asia. Founded in 1986, it is the oldest and largest Fair Trade coffee company in the United States.
The fair-trade system is inefficient at transferring coffee consumers’ goodwill to producers. Direct trade is probably more efficient and sustainable than fair trade. Artificially stimulating more coffee production keeps coffee growers poor, because overproduction makes the prices fall on the world markets.
It reported that "The FT was also handed evidence of at least one coffee association that received fair trade certification despite illegally growing some 20 per cent of its coffee in protected national forest land. [20] A lot of volunteers do unpaid work for firms, or market fair trade in schools, universities, local governments or parliament.