What are the labor standards?
The foundation of Fair Trade certification is the establishment of a minimum price. A guaranteed minimum price keeps small farmers in business and prevents the decay of rural communities based on agriculture. It enables more families to send their children to school, rather than having them work in the fields. The current minimum prices paid for high-quality arabica coffee beans is $1.21 per pound in Africa, Asia, Mexico and Central America, and $1.19 per pound in South America. Beginning in June of 2008, the minimum payment will increase to $1.25 per pound. Another 20 cents is added if the coffee is also certified as organic. These prices are paid to the farmers’ cooperatives, which then distribute profits after expenses. Not all coffee grown by small farmers meets the standards for these minimum prices. Fair Trade farms must also meet labor standards such as paying a minimum wage to workers, allowing workers to organize, and ensuring health and safety standards. What’s the downside?
