What is it?
Fair trade is a system based on the interaction of independent farmers' co-operatives and companies. The company pays the co-ops for fair trade goods based on a minimum price (approximately $1.26 per pound for coffee), regardless of market conditions, and fluctuates above that price based on the market conditions. Under a "free trade" system, there is no minimum price. Some farmers are paid less than their production cost of $.75 per pound, and subsequently lose their farms and their livelihoods. Fair trade also cuts out the middlemen between the farmers and the companies, passing the savings onto the farmers, who receive at least the guaranteed price. Most fair trade coffee doesn't cost more than free trade coffee, and 85% of it is organic. Fair Trade doesn't only apply to coffee. Recently, chocolate, sugar, bananas, tea and mangoes have been added to the products that can be Fair Trade Certified.