Fair Trade Coffee: Exploring the Benefits

Did you know that two-thirds of Americans drink coffee regularly, and a third drink more than four cups daily? That's just the US! An estimated 21 billion pounds are consumed worldwide yearly, but have you ever considered how this demand is sustained? 

Our love for coffee is slowly changing the face of the Earth and the millions of lives that rely entirely on this magic bean.

And like most things the world has endless demand for, many of these changes are for the worse. Generations of coffee farmers and producers are finding it harder and harder to earn a living from their trade. That's what fair trade aims to fix. 

Chances are you've come across the Fair Trade logo half a dozen times when shopping for coffee, never knowing exactly the purpose of what it indicates. It's time to understand what it's all about!

Read on to discover what fair trade coffee means, why it's important, its shortcomings, and what we think about it.

What Is Fair Trade Coffee?

Fair Trade certification means that the source of the coffee beans is guaranteed to have humane working conditions, fair wages, using sustainable methods in the production and cultivation of coffee beans.

How Does Fair Trade Help?

Businesses that get the Fair Trade certification buy coffee at a premium that acts as a safety net in case of sudden price drops.

The Fair Trade organization then takes a small cut of these revenues and invests it back into community development. They work on improving these communities' living conditions, education, business expenditure, and resilience.

Community development projects are chosen democratically by co-ops of the small businesses of the area. A lot of it goes into future-proofing small producers.

Fairtrade also works to eliminate the middleman as much as possible so coffee producers don't have to unnecessarily give up their equity to someone to sell their coffee.

This protects coffee farmers from being exploited and monopolized by major buyers who buy huge bulks of coffee cheaply to process it and make all the profit themselves.

Why Do We Need Fair Trade Coffee?

A coffee crisis has been brewing in the background for years, mainly due to climate change. Families that have worked in the coffee industry for generations are losing crops, productive land, and their livelihood because of global warming.

Research estimates that coffee production lands have shrunk by 20% in just two decades. This is because of the plant's sensitivity to temperature, which means it can't withstand higher temperatures and turbulent weather.

Farmers can adjust to that by planting canopy trees or investing in more resistant strains, but they often make less than a dollar per pound. That makes any investment in their future-proofing their farms near impossible.

A lot of small farms have even switched to more stable crops to make sure they earn a living. This is a problem in itself since countries like Colombia, Brazil, and Kenya have entire cultures built around coffee.

Fairtrade is one of the only ways these families can learn to cope with climate change while having the financial support necessary to make these essential upgrades. It's also one of the few ways the price of coffee can be regulated.

Does Fair Trade Coffee Really Make a Difference?

On paper, fair trade is a surefire way to make constructive change in our society. Unfortunately, the reality of it is much more complex than that. Discord around fair trade will continue to exist as long as there's a need for it, so there's no simple way to answer this. 

For example, one of the detrimental issues with fair trade is that there's often no way to monitor or regulate how its revenue is distributed. In fact, much of the premium the consumer pays never reaches the farmer it's intended to help. 

Another issue is that fair trade certified coffee while incurring more expenses on its farmers, is likely not to be sold for the premium price they sign up for. On average, a quarter of all fair trade coffee is sold at the average market price because there's simply not enough demand for it.

That said, fair trade is still a model worth investing in. Impactful programs may exist in reality, but the whole initiative still has vast room for improvement.

Understanding how it works—and fails—using concrete facts warrants entire research projects to map out the different factors in play. Knowing what fair trade means and ensuring that the company you purchase from is actually following fair trade practice is how you can play your part in making the world a better place for everyone!


Part of the reason that we use Peace Coffee at The Goodness Coffee Company is that Peace Coffee works directly with a coop of farmers in each of the regions they purchase in. They are absolutely dedicated to the fair trade philosophy and ensuring that farmers are treated well, paid well and can be valued for the work they do. Peace’s philosophy is “In it for Good” and this reaches all areas of their business including fair trade coffee.

Where Can I Buy Fair Trade Coffee?

Fair trade coffee is becoming a staple for coffee shops around the US. The Goodness House is one of those places!

We use Peace Coffee fair trade coffee for every cup to ensure that we're giving back to the farmers that provide us with the intoxicating coffee beans we love.

Final Thoughts

Fair Trade Coffee aims to change the lives of coffee producers for the better around the world. As a consumer, you can pay extra to do your part in shifting the market's priorities from profit to sustainability. 

While the global issue of equitable coffee trade is far from fixed, fair trade is the best solution available to us today. The cherry on top is that you can get better quality coffee!
Speak to your barista at the Goodness Coffee House if you're interested in testing and finding out more about specialty coffee. We'd love to chat!

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The Coffee Roasting Process: A Comprehensive Guide