In: Economics
What role does Fair Trade play in obtaining a livable wage for coffee growers in different countries?
Fair Trade plays an important role to improve the living conditions of coffee growers in different countries. It aims to achieve greater availability of financing for coffee producers, higher prices for coffee producers, longer-term and more sustainable coffee buyer-seller relationships, the maintenance and/or creation of effective producer or worker organizations, enhanced social goods and community development, and the use of environmentally friendly production processes.
Fair Trade works through a process of certification that needs that coffee suppliers and producers adhere to a set of requirements that targets to achieve Fair Trade’s objectives. The Fair Trade label that is displayed on certified products indicate consumers that the product was produced in a environmentally and socially responsible approach.
With Fair Trade, coffee growers in developing countries receive stable and good prices with greater security. It makes a big difference to their lives and enables them to escape from poverty. Moreover when it come together in a co-operative and meet Fair Trade standards, their coffee produce can qualify for Fairtrade certification. This ensures them a minimum price, based on local economic conditions, and covers production costs as well as a provision for household members to live a decent living standard. Moreover when world market prices are low, the Fair Trade buyers pay a minimum “floor price” and all Fairtrade-certified produce, a “social premium” for community purposes