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THE FAIR TRADE COFFEE

From Honduras to Vietnam to Kenya and Indonesia, some 125 million people worldwide depend on coffee for their livelihood. For a number of reasons, the global price of coffee is highly volatile. The coffee supply chain is a complex one. After leaving coffee farms, the beans pass through a succession of traders, processors, exporters, roasters and retailers. Most farmers have little knowledge of where their coffee ends up, or the price it sells for. A major challenge is that farmers aren’t earning enough to cover their costs. While others in the supply chain are also facing higher bills, many farmers don’t have the reserves to cope. There is often nowhere to cut costs, either. Many coffee farmers are living in poverty. One key difference the Fairtrade is making is rebalancing power. Whereby small producer organizations coming together can give them the leverage to negotiate better terms of trade and reach more markets.