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Fair Trade Coffee
A Good Deal for Everyone!
The vast majority of the world's 8 billion tons of green coffee is
bought and sold as a commodity on the New York Board of Trade, where
coffee futures contracts - a financial asset involving a
standardized contract for the future sale or purchase of a unit of
coffee at an agreed price - are traded.. Fair Trade Coffee is coffee which is purchased directly from a growers coop - not from the market - typically for a higher price than standard coffee. The purpose of Fair Trade is to promote healthier working conditions and to produce a greater economic incentive for producers.
In the Fair Trade system, growers are guaranteed a minimum price for the coffee, and if market prices exceed the minimum, they receive a per pound premium.
Coffee farmers producing Fair Trade certified coffee are required to be part of a coop with other local growers. The coops determine how the premiums from Fair Trade coffee will be spent.
Fair Trade coffee has become increasingly popular over the last 10 years, and is now offered at most places coffee is sold.
Coffee is one of many Fair Trade certified products available around the world.