Fair Trade Coffee

Fair Trade Coffee Fair Trade promotes long-term relationships between socially and environmentally sustainable technologies and producers, traders and consumers. Many low price and low quality coffee beans boosted the price of the world market to the lowest level in 30 years. The current harvest of many people is lower than the cost. Many coffee farmers all over the world are under production costs and forced to cycle through poverty and debt. If urgent action is not taken, 25 million coffee producers will face bankruptcy.

The academic evidence that fair trade coffee has a positive influence on coffee producers is complicated at best. Recent studies by researchers at Harvard University, University of Wisconsin and University of California show that Fair Trade Coffee has little impact on coffee producers, especially the poorest coffee producers. Researchers at the University of California found that the lack of influence comes from the unreasonable design of the fair trade system. In fact, the consensus of development economists shows that fair trade coffee is one of the most effective means for poverty reduction in developing countries.

Many people (and larger shops) choose to buy only "fair dealing" coffee and are determined to make every effort to fight the world's poverty. In doing so, they rejected other coffees that were not automatically marked as fair trade, and in their opinion they thought it was "being unjustly traded." But how fair is that? Small-scale coffee suppliers have increased in regions such as North America and Europe, and now use alternative purchase models called direct deals. This is to purchase a cup of coffee directly from farmers in tropical countries. Because they reduce brokers, they can usually pay more for coffee than fair trade or commodity coffee. Generally, small suppliers are attractive to those who think they are willing to pay for the best coffee. As a result, direct transactions will also help to raise the standard of growth and sickness.

Drink "Fair Trade" coffee. If the price of regular coffee (also called "free trade" or commercial coffee) is relatively high, it exceeds the guaranteed fair trade price. According to the rules of Fair Trade, this means that coffee producers pay almost exclusively at free trade prices (the best premium is small) - they will first sell ordinary merchandise coffee I will pay almost the same. Even if prices go down, they will not lose, but even if prices go up they can not make profits as expected.