ABSTRACT
Fair trade has grown from its modest origins to become an influential presence in global markets. Coffee remains fair trade's most important agricultural product; 56 percent of Fairtrade International certified farmers grow coffee (FLO 2016a). Research on fair trade cooperatives around the world indicates that fair trade can provide benefits for coffee producers, but there are also challenges and drawbacks. During the coffee crisis of 1999–2003, fair trade coffee growers received a significantly higher income than those who did not participate in fair trade. Prices on the regular market fell as low as 45 cents per pound, too low to cover the costs of coffee production. In order to receive fair trade prices, smallholder producers must be members of a certified cooperative. This principle supports democratic organization and gives smallholders access to markets. While fair trade certifiers may offer grants to reduce these costs, producers must invest in changes to meet standards and pay some certification costs.
