What is "fairtrade" coffee?
Under the overview of the Fairtrade Labelling Organizations International (FLO) the association provides certification for over 20 labeling initiatives in several countries including: Australia, New Zealand, Canada, Japan, Mexico and the United States. In the US, Tranfair USA is the third party certification organization which ensures farmers in producing countries receive a 'fair' price for their product(s) and labor efforts. The certification also ensures a for a social development including:
1. Better and fair labor conditions.
2. Direct Trade with buyers
3. Community Development
4. Environmental sustainability
5. A more democratic and transparent organization
Although the movement initiated in Europe, the Fair Trade movement has gained significant awareness in the United States through various consumer conscious organizations. Conventionally grown washed arabica coffee from Central America, Africa and Asia receive a minimum of $1.26 USD/per lb FOB; whereas certified organic coffee's from the same regions receive a minimum of $1.41 USD/lb. In the event that world coffee price rise above this floor, farmers ensured a premium of $0.05/lb above market price.