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What is Fair Trade?

A fair living wage for the farmers. Each farmer is guaranteed to earn $1.26 per pound of coffee or $0.05 above prevailing market price. For organic coffee, the floor price is $1.41 per pound or $0.15 above prevailing market price for Organic coffee.

A democratic and fair treatment of farmers. Farmers must belong to transparent cooperatives or associations that are democratically controlled by members. Importers must purchase from certified cooperatives or associations and establish long-term relationships. In addition, importers must provide pre-harvest credit and financing to farmers.

A win-win solution. A fair deal for the farmers and enforcement of environmental sustainability. Farmers must utilize environmental friendly farming practices that include integrated crop management and environmental protection plan. 

How does Fair Trade work? 

An independent, third-party inspectors police the trade activities according to the international standards. Fairtrade Labeling Organization (FLO), an international body, imposes fair trade standards.

Cut out the middlemen. Farmers do not represent themselves to local middlemen, but combines forces with fellow farmers to deal directly with importers who are certified by FLO. Thus, local middlemen, exporter, and brokers are eliminated from the supply chain.

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