Analysis of Fair Trade Coffee: The Mainstream Debate

Small holder farmers provide over 80% percent of the world’s coffee produced and over 100 million people in coffee producing countries get their livelihood from coffee (Fairtrade Foundation, 2011). Coffee producers are paid roughly 10% of the cost of the coffee and the product can change hands numerous times throughout the supply chain. Does Fair Trade Certification offer an avenue for farmers to exit poverty? If so, what is the best way to achieve this?

Answer the following questions:

Do you think smallholder coffee growers and farm workers are benefiting from the fair trade movement? Considering the fair trade coffee movement and the emergence of other competing business models. What seems to be working and what needs to be improved?

Do you think cutting out middle layers in the value chain helps eliminate poverty and further the goals of Fairtrade Labeling Organization?

Do you agree with some of the criticism about Fair Trade coffee? What concerns do you have in this being a tool to alleviate poverty?

Do you agree that Fair Trade coffee should remain a niche product or would it best serve its mission to become mainstream?