Fair Trade is a voluntary program utilized by coffee importers and food companies to create an alternative market for traditionally disadvantaged producers in developing countries, usually small scale farmers. The components include:
- Targeted purchasing of coffee through democratically organized farmer
co-operatives; - Agreed upon commodity floor prices that provide for a dignified
livelihood; - Direct exports by producers;
- A promise by importers to make affordable credit available to the farmer
cooperatives; - A world-wide network of non-profit certifying organizations;
- A fee paid by importers and wholesalers to cover the cost of
certification; - A seal that assures consumers that the product was fairly traded.
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