Direct Trade refers to corporate relationships with coffee producers rather than a third party certification process. For example, Peet’s Coffee & Tea Company and Portland Roasting Company source coffee beans of high quality and require production methods that are environmentally friendly and socially responsible. They pay growers higher prices than the fixed Fair Trade price per pound. Neither company, however, uses a transparent set of standards for consumers to compare against third party certifying guidelines.

 

The Fair Trade program primarily aims to support small farmers, which is why only small farmers who belong to farmer-owned, democratically-run coffee cooperatives are eligible for Fair Trade certification. Fair Trade coffee farmers are guaranteed a minimum price for their product and importers are required to purchase the coffee beans directly from the producer group. This bypasses the various middlemen and ensures that the farmers themselves receive a higher premium for their crop. Fair Trade premiums are reinvested in what the co-op chooses which can include community scholarship programs, training sessions or other projects for business skills development. 

 

Coffee farms that are Fair Trade certified are required to provide safe working conditions for their laborers as well as reasonable living wages. Child labor is strictly prohibited. Fair Trade certification also aims to sustain environmental health by prohibiting the use of harmful chemicals and pesticides. Sustainable farming methods are required because this not only enhances biodiversity but also protects the coffee farmer from constant pesticide exposure.

 

Critics of the Fair Trade program point out that the coffee supply is outpacing demand and the Fair Trade certification is an artificial construct in the economic system (similar to farm subsidies). Existing farmers will be encouraged to produce more coffee and new producers to enter the market, ultimately leading to excess supply. In a free trade market, extremely low prices would encourage coffee farmers to grow other crops that would yield more revenue. This overproduction, critics argue, would not only distort the economic market, it would also affect already poor coffee farmers who are not Fair Trade certified. Excess supply would drive the price of non-Fair Trade certified coffee even lower leaving those farmers in worse economic conditions.

“Certified Organic” means that the coffee beans were grown without synthetic fertilizers and pesticides. This not only benefits the environment by minimizing contamination of waterways and wildlife, but it also protects the farm workers’ health by decreasing their exposure to these chemicals. Organic certification does not address economic inequality or social justice issues. It is primarily concerned with the production methods of coffee beans and the environmental impact of these practices.

 

There are also criticisms about the certification process. Some argue that it is an unfair marketing method that does not benefit the poor farmers. For example, it is estimated that 65% of the coffee producers in Mexico are organic, not by choice, but because they don’t have the resources to pay for chemical fertilizers. However, they are not certified as organic by the USDA because certification is too expensive. Therefore, although their coffee beans are technically “passively organic,” they are unable to charge a premium for their product. 

 

In order to qualify for “Rainforest Alliance” certification, coffee farms (of any size) develop and implement plans for the following categories: ecosystem and water conservation, wildlife protection, fair treatment and good working conditions for workers, occupational health and safety, community development, soil management and conservation, and integrated crop and waste management. Once the coffee farm is inspected by Rainforest Alliance-trained specialists, an independent team evaluates the report to determine qualification. Child labor is strictly prohibited.

Coffee naturally grows in the shade under a canopy of trees. However, monocropping and “sun cultivation” techniques were introduced to increase yield and also led to deforestation. Trees were natural habitats for many songbirds which have become endangered as a result of their habitat damage. In addition, compared to sun-grown coffee plants, shade-grown varieties are more environmentally-friendly because they live twice as long due to better soil maintenance (less erosion). This helps to preserve the surrounding biodiversity and also preserves habitats for songbirds. Coffee that is shade-grown indicates that the coffee beans were grown using traditional methods that protect environmental health. Shade-grown does not specifically address the social and economic issues of coffee workers.