Fair Trade and Future

History of Coffee and Coffeehouses

Course 1 · Chapter 9 · Specialty, Fair Trade and Climate

Since the 1980s a movement has tried to change how coffee is grown, bought and appreciated. Fair trade labels, direct trade and specialty roasters aim to raise farmers' incomes and quality. At the same time climate change threatens the regions where good arabica grows. This chapter explains these developments and how to judge claims about them. Dates and figures are flagged "check".

Key Ideas

Fair trade

Fair trade labelling began in the Netherlands in the late 1980s (Max Havelaar) and spread to many countries, offering a minimum price and a premium to certified producers (check the details).

Specialty and the third wave

Specialty coffee emphasises origin, farm, processing and roast, with careful brewing. The term "third wave" is used for this shift, but it is a loose label (check).

Climate

Warmer temperatures, changing rainfall and disease such as leaf rust threaten many coffee regions. Research suggests that land suitable for arabica could shrink significantly by mid-century (check current studies).

At a Glance

Approach	Question to ask (check each)
Fair trade certification	What share of sales reach farmers, and how much does the premium add?
Direct trade	Who verifies the claims, since there is no single standard?
Organic and shade-grown	What do the labels guarantee and how are they audited?
Adaptation	Which varieties, altitudes and farm practices help?

Labels are claims A label is a claim backed by an audit scheme. Learn who runs the scheme, what it requires and what independent studies of its effects find.

Further Points

Evidence. Studies of fair trade's effect on incomes give mixed results (check recent reviews).
Price. The global price swings; farmers often earn little in low-price years.
Consumers. Tastes change, and premium coffee is a small share of volume.

A British comparison British shoppers know the Fairtrade mark on supermarket shelves, a good example of a label whose meaning and effect can be examined.

Check the details Dates, names and figures here are from general knowledge and flagged "check". Verify them against specialist histories and primary sources, and label unproven stories as "claimed".

Exercises

Exercise 1

Explain what a fair trade minimum price is meant to do and one criticism of it.

→ Solution

Exercise 2

Why is climate change a particular risk for arabica?

→ Solution

Exercise 3

Choose a coffee label and use the six-question method of the next chapter to judge its claim.

→ Solution

Quick Reference

Fair trade: minimum price and premium (check)
Third wave: loose label
Climate: arabica at risk (check)
Habit: treat labels as claims