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What does fair trade coffee actually mean?

A certification guaranteeing a minimum price to co-operatives. It is a floor rather than a quality mark, and specialty prices usually exceed it.

Fairtrade certification guarantees producers a minimum price per pound, plus a social premium paid to the co-operative for community projects.

What it does well

A price floor. When the commodity market — the C price — falls below the cost of production, as it repeatedly does, Fairtrade’s minimum protects certified farms from selling at a loss.

That matters. Coffee price crashes have driven farmers off their land.

Co-operative organisation. Certification requires democratic structures, which builds bargaining power.

Its limits

It is a floor, not a quality mark. Nothing about the certification says the coffee is good, and plenty of Fairtrade coffee is commodity grade.

Only co-operatives can certify. Individual estates cannot, which excludes many excellent producers.

Certification costs money, paid by the co-operative, which is a burden for the smallest.

The floor is often below specialty prices. A roaster paying three times the C price for an 87-point lot is paying far more than Fairtrade requires, without the certification.

Direct trade

The specialty alternative: roasters buying straight from producers at negotiated prices, usually well above both the C price and the Fairtrade floor. Unregulated, so it depends on the roaster’s honesty — but transparency reports are increasingly common.

What to look for

A roaster who publishes what they paid. That tells you more than any logo.

Last reviewed 8 August 2026