Aside from Kona coffee which is grown locally in Hawaii, all coffee in America is imported. Various international groups have in the past tried to regulate the wholesale and to some degree the retail price of coffee. This benefited large growers and coffee brokers but did very little for smaller coffee growers. Fair trade coffees on the other hand are priced and sold to offer a better return to the smallest of operations and strive to develop working and living conditions in addition to benefiting the local community around coffee farms.
To be labeled as fair trade coffees, they need to be sold by farmers who belong to a coop and meet some other criteria. For example, they're forbidden to use child labor and some regulations are in place to maintain safety in the workplace. The operations of the coop are required to be democratic and clear and there's a policy of contributing to the community in addition to receiving individual profit. Coffees which have been produced according to the specifications receive fair trade certification from the Fair Trade Labeling Organization.
Fair trade coffees are purchased from the coops at a price that is about the normal for wholesale coffee at this level. Farmers in a coop are guaranteed a minimum price, but if the real price is higher, they receive the actual price. Not all of the profit goes straight to the grower as the coop retains some of it for operating costs but particularly for community betterment. Fair trade coffees have provided educational scholarships to kids and adults who would otherwise never had this type of chance. Other benefits have included cancer screening programs and ecological improvement.
While fair trade coffees now constitute a small percentage of the total globally coffee market, that figure is increasing every year. Religious and other humanitarian groups encourage their members to buy fair trade coffees as a way to aid enhance the quality of life for others while obtaining a high quality product. A decent percentage of fair trade coffees are being grown organically that also adds to their appeal among customers who prefer more natural foods and beverages.
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