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Fair Trade: The Coffee Industry

Kristen Manning

York University

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Personal perceptions of value help influence the buying behaviour and decisions

of millions of consumer’s worldwide. The consideration of how the product fits in to a

person’s lifestyle often aids in purchase decisions and weighs the factors of price, quality

and social consciousness. “Global public opinion surveys have identified the growing

influence of personal values in purchase behaviour. The most common, relative to the

food and beverage industry, include Fair Trade” (Government of Canada, 2012).

Consumer awareness surrounding the market for fair trade products has grown over the

past decade. According to a study conducted by the Government of Canada (2012),

there have been significant increases in both regular and occasional purchasers of fair

trade products since 2008. As a result, many retailers and suppliers have adopted

polices and practices that protect workers in foreign countries against exploitation and

corruption. However, producers and retailers within the coffee industry have not

embraced this approach. This paper will investigate the reasons behind the absence of

consumer awareness of fair trade coffee and provide insight into the actions required

toward delivering a sustainable future for the industry.

It is important to understand the concept and processes related to fair trade. Fair

trade is defined by the World Fair Trade Organization (2014) as “a trading partnership,

based on dialogue, transparency and respect, that seeks greater equity in international

trade. It contributes to sustainable development by offering better trading conditions

to, and securing the rights of, marginalized producers and workers”. Fair trade, as it

relates to the production of coffee beans, is much like many other agricultural and textile

industries. Under fair trade agreements, farmers are offered a minimum price for their

coffee crops, which covers the costs of production, and protects farmers if the market

price of coffee falls below a sustainable level (Fair Trade Canada, 2014). “Theoretically,

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a fair trade farmer never loses, because when the commodity market price is higher

than the fair trade price, the farmer receives the market price, and the farm or co-op still

receives the premium” (LaPorte, 2013). “Fair trade supports farmers and workers in

gaining more from trade and through this they are empowered to control their lives. It

is an alternative trade approach that is based on partnership; one between those who

grow our coffee and those that consume it” (Fair Trade Foundation, n.d). As stated in a

web document published by Fair Trade USA (2015), fair trade consistently offers better

prices for farmers, especially in rural or developing countries, and helps to improve the

business skills necessary to produce high-quality products that can compete in the

global marketplace. Not only does this trade process ensure that the people involved in

the coffee production are being treated and compensated fairly, it encourages

environmental sustainability (Martineau, 2014). Organizations such as Fair Trade

Canada are continuously monitoring and controlling these markets to ensure all coffee

crops are being grown and produced according to a very strict set of standards and

guidelines.

As a global community, each individual has an opportunity to make a positive,

long-lasting change for the many millions of farmers worldwide. However, the true

success of fair trade depends on independent buying agreements and successfully run

organizations that guarantee producers are abiding by the stringent set of guidelines

and principles. The World Fair Trade Organization (2014) has set out a list of ten

principles which fair trade organizations must follow in their “day-to-day work and

carries out monitoring to ensure these principles are upheld”. A reoccurring theme

within the set of principles is to reduce poverty and gain economic sustainability. “The

organization supports marginalized small producers, whether these are independent

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family businesses, or grouped in associations or co-operatives. It seeks to enable them

to move from income insecurity and poverty to economic self-sufficiency and

ownership” (World Fair Trade Organization, 2014). Another top of mind issue covered

within the principles outlined by the World Fair Trade Organization (2014) is the

commitment to non-discrimination, gender equality, freedom of association, and

ensuring absolutely no forced labour or child exploitation occurs. “The organization has

a clear policy to promote gender equality that ensures women as well as men have the

ability to gain access to the resources that they need to be productive and also the ability

to influence the environment that shapes their livelihoods and lives” (World Trade

Organization, 2014). In addition to protecting the health and safety of all farmers,

guaranteeing equal pay and reducing racial, gender and cultural discrimination, the

organization respects the right of all employees to form and join trade unions of their

choice and to bargain collectively (World Fair Trade Organization, 2014). Establishing

fair trade agreements with struggling farmers will improve their livelihood and success,

and with the assistance of the WFTO, members come to a mutual agreement for better

business practices. Having these formal and universal principles, standards, and codes

of conduct, helps support and sustains one of the world’s largest traded commodities.

For centuries, coffee has been one of the most valuable products in world trade.

Coffee is the world’s second highest traded commodity, behind petroleum, with more

than 25 million coffee farmers in more than 50 producing countries (Global Exchange,

2011). As stated in the Coffee Exporter’s Guide published by the International Trade

Centre (2012), coffee was responsible for trade worth $16.5 billion USD in 2010, with

annual production of 131 million bags (7.8 million tons). “Coffee is indigenous to

Ethiopia, where the beans were first consumed around 500 A.D. Today, the crop is

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enormously valuable to the economies of many developing countries” (Fair Trade

Canada, 2014). In recent years, three countries, Brazil, Vietnam and Columbia, have

produced 55% of the world’s coffee (Jan van Hilten, H., & Fisher, P., 2012). Research has

indicated that Brazil continues to be the world’s number one grower and seller of coffee,

with Vietnam holding the second position after the country rapidly expanded it’s

production in the late 1990’s, bringing Columbia to the third position (Jan van Hilten, H.,

& Fisher, P., 2012).

Coffee is a highly labour intensive crop, farmers risking their livelihood to

produce beans, with very little financial return, keeping growers in a cycle of poverty,

debt and hardship. “Coffee farmers often live in poor rural communities that rely on

coffee harvesting as their primary source of income” (World Vision, 2014). Most of the

coffee-dependent farmers reside in the global South, where it is difficult to escape the

cycle of poverty and labor exploitation, especially in producing countries like Vietnam,

Colombia, Indonesia, and Mexico (Fair Trade Canada, 2011). More than 90% of coffee

production takes place in developing countries, with an industry that flourishes off

cheap labour, paying farmers less than 7% of retail value within grocery store supply

outlets (World Vision, 2014). Coffee may be purchased for $3.50 at a local coffee shop,

however farmers may receive as little as 3 cents (World Vision, 2014). Coffee growers

receive less than a decent wage, making it difficult for families to survive and rely on

their crops each year as a source of income. According to a World Vision Campaign web

document, Coffee’s Hidden Kick: Labour Exploitation in the Global Coffee Industry, it was

stated that “lack of price stability for coffee can lead to situations of labour exploitation,

where workers and their families have little choice but to work in exploitative or

dangerous conditions to earn a small income”. It is even more difficult to escape the

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cycle of poverty when “small family farmers grow over 50% of the world’s coffee” (Fair

Trade Canada, 2011). With small, family operated farms occupying half of the world’s

coffee production; there is an even greater need to implement fair trade and better

business practices.

Despite enormous annual consumption, producers continue to suffer due to the

global economic structure of the coffee industry, which exploits cheap foreign labor and

in an effort to keep consumer prices low (Global Exchange, 2011). It is estimated that

coffee consumption has grown by an average of 1.2% annually since the 1980’s (Jan van

Hilten, H., & Fisher, P., 2012). With consumption continuing to rise, more cafes opening

up, to the expanding retail selection, it is particularly difficult to imagine a world without

coffee. Getting a daily dose of caffeine has become a part of millions of people’s daily

routine. According to the International Coffee Organization, coffee is the world’s most

widely traded tropical agricultural commodity, globally the most widely consumed

beverage, accounting for exports worth an estimated US$ 15.4 billion (2010). Annual

coffee consumption is estimated to be around 400 billion cups worldwide, averaging

12 000 cups per second (Fair Trade Canada, 2011). In our nation alone, Canadian coffee

drinkers' drink an average of 2.8 cups of coffee per day (Coffee Association Canada,

2010). Fair Trade Canada (2011), reported two-cup-a-day coffee drinkers will consume

an annual harvest of 18 coffee trees in one calendar year and with coffee plants taking

four years to produce fruit (coffee beans), it makes growers vulnerable to the volatile

market.

Coffee plays an integral role in the global economy due to the millions of jobs it

provides worldwide, from farmers to baristas, ending in the hands of consumers. Coffee

trade accounts for billions of dollars worldwide. According to the Government of

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Canada (2010), coffee imports accounted for $845.3 million in 2009. As such, it is

important to understand the fair trade business practices impacting the coffee industry.

Levels of consumer awareness surrounding the issues of fair trade in such a large and

vital industry need to be evaluated. It is important to understand and become educated

on the current state of consumer awareness and factors that can influence change

amongst our growing population of caffeine lovers.

Most consumers do not consider where their morning cup of freshly brewed

coffee comes from and who grows it. As previous research details, coffee is a large and

vital export for many developing countries, representing the livelihood of millions of

farmers. It is important to understand how coffee growers are being treated and what

consumers can do to help make a change. It would be highly beneficial to see an

increase in consumer awareness regarding the details and implications of fair trade. It

is in the hands of the consumer to help make a change to eliminate labour exploitation.

In order to gain consumer insights on the issues surrounding fair business

practices within the coffee industry, I conducted a survey amongst my peers. The

objective of the survey was to evaluate consumer awareness on the topic of ‘fair trade’

coffee and to measure whether consumers make a conscious effort to purchase coffee

that is ‘fair trade certified’. To comprehensively examine the results of my own survey,

prior published research was used to compare and contrast findings.

The questionnaire was conducted using SurveyMonkey, a web-based survey tool

in which data was collected after sharing the link amongst personal contacts through

Facebook, Twitter and e-mail. Complete details of the survey, including the

questionnaire and a statistical analysis of the responses is included in the Appendix.

Responses from 100 participants were collected and recorded. Basic demographic

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information including gender, age and highest degree of education, was also collected.

The survey respondents skewed toward well educated, female participants with 70%

being female and 66% (of all respondents) having obtained a university degree or

higher. This group would be representative of a high value consumer demographic for

the coffee industry as well as many other consumer categories. The survey also skewed

toward a younger demographic with 80% of participants falling in the 18 – 29 year age

range. The weighting toward this younger demographic is reflective of the individuals I

am connected to through Facebook, Twitter and e-mail. The research group however,

included a full range of age groups (18-60+ years of age) representing a broad age

demographic.

The research questions queried participants about personal coffee consumption.

It was found that almost 60% of survey participants consumed more than one cup of

coffee per day, with an additional 32% classified as “occasional” drinkers, consuming

less than one cup of coffee per day. It is clear that the overwhelming majority (92%) of

Canadians are consumers of coffee, therefore making the issue of fair trade practices

potentially a topic of interest to millions of buyers. These results can be directly

correlated to a study conducted by the Coffee Association of Canada (2010), finding that

65% of Canadians drink coffee on a daily basis. As stated by the Coffee Association of

Canada (2010), in-home continues to be the dominant place for consumption, with

similar findings in my survey. My research found that 52% consumed the majority of

their coffee at home, while 46% of participants reported purchasing their coffee at

either Tim Hortons or Starbucks.

When asked if the term ‘fair trade’ coffee was a familiar concept, 61% answered

affirmatively, indicating that there is a relatively broad awareness of the fair trade

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concept within the test group. High levels of awareness surrounding the concept of fair

trade practices may be due to the level of education amongst participants, in comparison

to the general public; more than 65% of respondents obtain a university degree or

higher. Among those who indicated familiarity and showed an understanding of the fair

trade terminology, 55% of respondents indicated purchasing certified fair trade coffee,

however, only when it is convenient. An alarming number of participants (45%) stated

they do not actively purchase fair trade coffee because the issue does not concern them.

Among the slight majority (61%) of conscious consumers, most notably none of the

participants purchased fair trade coffee every time. Based on my research, only about

30% of Canadians (respondents) take any action in this issue, and even those are only

occasionally, when it is convenient. There in lies one of the problems. Consumers are

really not showing much interest in this issue.

A strong and compelling correlation between my survey and the research

conducted by the Coffee Association of Canada (2010) can be seen in the following two

questions. After giving survey participants, whom had little knowledge on fair trade

practices, the opportunity to read a brief overview of the concept of fair trade, it was

asked if they then would be more likely to purchase coffee that is stamped with the ‘Fair

Trade Certification’. A high percentage of respondents (74%) answered positively

towards purchasing fair trade coffee. A similar response was reported when asked if

participants would change their buying behaviour to support fair trade practices as it

relates to coffee. Survey results reported roughly 30% of the study group stating that

they will not change their buying behaviour to help support fair trade practices; this

issue does not appear to concern them. However, much like the positive results found in

my survey, “awareness and purchase of cause-related coffee continues to increase

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among coffee drinkers. There continues to be a better conversion from awareness to

purchase Fair Trade coffee than any other cause-related coffee, including organically

grown” (Coffee Association of Canada, 2010). While the research indicates there is an

interest in this subject, consumers have not been driven to change their buying

behaviour.

The question still lingers as to why more consumers are not purchasing certified

fair trade coffee either at the grocery store or picking up a latte on their way to work. As

reported by the Government of Canada (2012), a major barrier for consumers

purchasing fair trade coffee was the limited selection amongst retail outlets and sheer

availability and lack of awareness within cafes and coffee shops. “Canadians expressed

interest in having fair trade products more widely available and showed particular

interest in seeing fair trade offered in restaurants and discount stores” (Government of

Canada, 2012). For the consumers who had no concern or regard to purchasing fair

trade coffee due to a perception of an “increase in price and low quality coffee”, the

World Fair Trade Organization published an article that repudiated those myths.

Most Fair Trade products are competitively priced in relation to their conventional counterparts. Fair Trade Organizations work directly with producers, cutting out middlemen, so they can keep products affordable for consumers and return a greater percentage of the price to the growers.Fair Trade Organizations continuously work to improve quality and consistency. Through direct and long-term relationships, producers and Fair Trade Organizations understand consumer needs and create high quality products. Fair traders have received awards at the International Cup of Excellence and Roaster of the Year competitions (World Fair Trade Organization, 2014).

Fair Trade USA (2015) also published an article stating the quality of fair trade coffee

remains high and prices are competitive with other roasts on the market. Consumers

who believe they are paying a premium for certified fair trade coffee at a retail outlet,

are in fact misinformed. When purchasing a product, like a bag of coffee in the grocery

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store, the fair trade logo indicates that the beans have been produced by small-scale

farmer organizations or plantations that meet social, economic and environmental

standards (Fair Trade Foundation, n.d.). Every purchase stamped with the certification

ensures fair trade standards were followed and met regulations. With each purchase,

the farmer receives payment of the fair trade ‘minimum price’ and an additional fair

trade premium to invest in business or community projects, such as investment into

education, transportation, health care, and sanitation (Fair Trade Foundation, n.d.). In an

article, The Impact of Fair Trade Certification for Coffee Farmers in Peru, published in the

Journal of World Development, concluded that fair trade farmers were also found

successful in expanding their production, “experienced greater satisfaction with the

prices obtained for their crop, and reached improvements in food consumption and

living conditions that resulted in a significant drop in child mortality” (pg. 570). Ruben

and Fort (2009) opined, “fair trade can be said to have accomplished its goal of

improving the returns to small producers and positively affecting the quality of life” (pg.

572). With the tremendous amount of literature published detailing the positive effects

of fair trade business practices, it is a wonder as to why these practices have not become

mainstream within this industry.

Coffee can most certainly be described as the number one drink of choice, with so

many varying flavors, styles and broad distribution. With more than half of the

Canadian population characterized as ‘coffee drinkers’, further research is needed to

determine why consumer awareness and availability of fair trade coffee is relatively low.

Instead of continuing with a downward spiral of cheap labour and exploiting farmers,

the movement of fair trade needs to become more apparent within our society and

global economy.

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After conducting research, comparing results to previous studies, and reviewing

existing literature, it appears consumer awareness of fair trade practices within the

coffee industry is relatively low due to lack of media attention and concern. Further;

consumer buying behaviour is not being influenced sufficiently to create a positive

movement toward fair trade practices. Consumers are not currently compelled to

change their buying behaviour to support fair trade and labour practices. However,

consumer awareness is not absent. At a point in time, this was true for the athletic wear

and apparel industry. Corporations drastically altered their practices and buying

behaviour has been forever changed.

Poor working conditions and exploitation has been known for centuries.

Companies moving offshore to keep labour costs low while reaping the benefits of

successful consumer markets is not a new concept in our global economy. Almost

everyone can recall the Nike controversy that made headlines across our nation. As

stated by Matt Wilsey and Scott Lichtig in an article published by Stanford University,

“no corporation has come under as much criticism as the culture icon of Nike. It was

illustrated that conditions were sub-par in several critical areas of Nike’s factories

overseas and minimal standards needed to be reached” (“The Nike Controversy”, n.d). In

a journal article written by Professor Debora Spar, the corporation had been plagued by

a series of labor incidents and public relations nightmares in the 1980’s and 1990’s:

“underage workers in Indonesian plants, allegations of coerced overtime in China, and

dangerous working conditions in Vietnam” (Harvard Business School, 2002). Much of

these reports were confined to labour activist circles but in the late 1990’s, labour

conditions hit mainstream and received harsh media attention (Spar, 2002). Also noted

in the article published by the Harvard School of Business “stories of reported abuse at

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Nike plants had been carried in publications such as Time and Business Week and

students from major universities such as Duke and Brown had organized boycotts of

Nike products” (Spar, 2002). Debates of labour practices and the unforgiving reports of

exploitation amongst several producing countries had the media and millions of people

attacking Nike, resulting in significant negative commentary within the mainstream

media. As reported by Wilsey and Lichtig in the article, The Nike Controversy, Nike had

“single handedly lowered the human rights standards for the sole purpose of

maximizing profits”. With Nike having such a profound impact on the business world

and global consumer economy, it was crucial that this company make a pivotal change to

improve human rights and establish concrete labour standards. For decades leading up

to the labour exploitation allegations, Nike dominated the footwear and apparel

industry, making it a crucial move to immediately change the way this multimillion

dollar company conducted business practices in offshore factories. Nike could not

afford for their name to be tainted even further; in addition to selling athletic wear, Nike

sells their image. “For Nike to have its image associated with sweatshops in Asia was

more than an embarrassment, the revelations threatened sales. Sales were dropping

and Nike was being portrayed in the media as a company who was willing to exploit

workers and deprive them of the basic wage needed to sustain themselves in an effort to

expand profits” (Wilsey, & Lichtig, n.d).

Due to media reports and social activism, Nike was forced to change their

business practices immediately. Policies, standards and codes of conduct, which were

implemented in all factories, eliminated child or forced labour, poor working conditions,

illegal wages and discrimination.

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Horror exposes, media blasts of labour exploitation, and anti-sweatshop

campaigns proved to make one of the biggest changes with worker’s rights, impacting

one of the world’s largest brands and the iconic ‘swoosh’ trademark. The corporate

culture of the sportswear industry was forever changed.

Coffee farmers are being treated much like workers in sweatshops. Poor working

conditions, discrimination, and little compensation for their crops, makes it hard to rise

above poverty and economic hardship. However, unlike the significant awareness

generated on the topic of labour exploitation at Nike factories, there is a very limited

amount of material that details the poor and negative working conditions for coffee

farmers in the global south. There has never been a worldwide media campaign

surrounding the issues of labour exploitation within the coffee industry. No media

expose has been published with nearly the same magnitude that erupted in the wake of

labour and human rights standards being abused within the sporting goods industry.

Consumer awareness continues to be relatively low surrounding the issues of

exploitation within the coffee industry. Negative media attention has not been in the

front lines of the coffee industry, in fact, based on survey results and prior literature,

consumers are not aware of the poor working conditions for many millions of coffee

growers. Campaigns and boycotts against the retailers who continue to exploit farmers

and choose not to purchase certified fair trade coffee, could potentially make a

compelling change within this ever-growing industry. Raising awareness is the key to

success. Foundations, such as Fair Trade Canada, should endeavor to engage the media

in exposing exploitation stories about the plight of farmers, much like what was

uncovered with the Nike factory workers. Associations supporting Fair Trade practices

might also consider publicly identifying the leading retailers, within the market of both

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coffee shops and products sold within grocery stores. These companies would be

making a positive contribution to changing labour practices by demonstrating and

engaging in marketing campaigns around their commitment to selling only fair trade

coffee. This movement could improve consumer perceptions of their brand and lead to

a competitive advantage.

Major media attention is needed to change the paradigm; consumers need to

become aware of the harsh reality happening in producing countries. The media,

campaigners and social activists targeted Nike because it was one of the world’s best

selling brands. Coffee is the worlds best selling beverage and the second largest

commodity worldwide but nothing as profound has occurred within this growing

industry. Fair trade practices have not been implemented across the coffee industry

because of the fear of lost profits; however, poor business practices can greatly affect

sales and hinder company reputation.

A comprehensive effort by the relevant Fair Trade Organizations aimed at driving

increased media attention is required. A successful campaign would trigger consumer

activism and government action, paving the way for long-term sustainability within the

coffee industry.

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References

Coffee Association of Canada. (2010). Retrieved from http://www.coffeeassoc.com/coffeeincanada.htm

Fair Trade Canada. (2014). Retrieved from http://fairtrade.ca/

Farm Gate Coffee. (2014). Retrieved from https://www.sweetmarias.com/farmgatecoffee.php

Fair Trade Foundation. (n.d.). Retrieved from http://www.fairtrade.org.uk/en

Fair Trade International. (2011). Retrieved from http://www.fairtrade.net/

Fair Trade USA. (2015). Retrieved from http://fairtradeusa.org

Global Exchange. (2011). Coffee FAQ. Retrieved February 2, 2015, from http://www.globalexchange.org/fairtrade/coffee/faq

Government of Canada. Agriculture and Agri-Food Canada. (October 2010). The Canadian Coffee Industry [Ottawa]. Retrieved from http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-product-sector/processed-food-and-beverages/the-canadian-coffee-industry/?id=1172237152079

Government Of Canada. International Markets Bureau. (April 2012). Socially Conscious Consumer Trends, Fair Trade [Ottawa]. Retrieved from http://www.ats-sea.agr.gc.ca/inter/6153-eng.htm

International Coffee Organization. (n.d.). World Coffee Trade. Retrieved February 3, 2015, from http://www.ico.org/trade_e.asp?section=About_Coffee

Jan van Hilten, H., & Fisher, P. (2012). International Trade Centre. The Coffee Exporter's Guide, (Third Edition). Retrieved February 2, 2015, from http://www.intracen.org

LaPorte, N. (2013, March 16). Coffee’s Economics, Rewritten by Farmers. New York Times. Retrieved from http://www.nytimes.com/2013/03/17/business/coffees-economics-rewritten-by-farmers.html

Martineau, C. (2014, February 19). What Does 'FairTrade' Coffee Really Mean? Retrieved February 2, 2015, from http://www.foodrepublic.com/2014/02/19/what-does-fair-trade-coffee-really-mean

Ruben, R., & Fort, R. (2009). The Impact of Fair Trade Certification for Coffee Farmers in Peru. World Development, 570-582.

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Spar, D. (2002). Hitting the Wall: Nike and International Labor Practices. Harvard Business School. Retrieved from http://ardiansyahzein.com/SEMESTER%204/ICA/COMPETING%20CASE/Hiiting%20the%20wal%20-%20nike%20and%20international%20labor%20practices.pdf

Wilsey, M., & Lichtig, S. (n.d). The Nike Controversy. Retrieved from https://web.stanford.edu/class/e297c/trade_environment/wheeling/hnike.html

World Fair Trade Organization (2014). Retrieved from http://www.wfto.com/

World Vision (2014). Coffee’s Hidden Kick: Labour Exploitation in the Global Coffee Industry. Retrieved from http://campaign.worldvision.com.au/wp-content/uploads/2014/03/7280_DTL_Factsheet_Coffee_Web_Single.pdf

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Appendix

Survey: “Wanted: Causal Coffee Drinkers or Caffeine Addicts”Sample size: 100 participants Method: The questionnaire was conducted using SurveyMonkey, a web-based survey tool in which data was collected after sharing the link amongst peers through Facebook, Twitter and e-mail.

1. Are you male or female? a. Maleb. Female

32%

68%

Male Female

2. Age a. <18b. 18-29c. 30-44d. 45-59e. >60

80%

13%

6%

1%

<1818-2930-4445-59>60

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3. What is the highest level of education you have completed?a. High school diplomab. College diplomac. University degreed. Post graduate degree

12%

22%

52%

14%

High School Diploma

College Diploma

University Degree

Post Graduate Degree

4. Do you drink coffee on a regular basis?a. One or more cups a dayb. Less than a cup a dayc. Never

58%32%

10%

One or more cups/day

Less than a cup/day

Never

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5. Where do you consume the majority of your coffee?a. Tim Hortonsb. Starbucks c. Home d. Other, please specify

29%

17%

52%

2%

Tim HortonsStarbucks Home Other

After gathering all responses through the online survey, it was discovered that a couple of individuals sought out their own coffee suppliers (response to Question #5); not name brand labels such as Starbucks, Tim Hortons, Nestle, etc. A participant in the survey left the name of the company they purchase their coffee beans from. The company, Sweet Maria’s Home Roasting Coffee, is an online source for consumers to purchase Green Organic coffee from several different regions. The established business implemented a direct trade buying process called Farm Gate Coffee, which negotiates the price of coffee right at the “farm gate” (Farm Gate Coffee, 2014). After speaking to a company representative, Farm Gate pricing guarantees 50% higher than fair trade minimums, often reaching almost 100% more than that of fair trade prices.

6. Have you heard of the term ‘fair trade’ coffee?a. Yes b. No

61%

39%

Yes No

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7. If you answered ‘yes’ to Question #6, do you actively purchase coffee under fair trade certifications?

a. Yes, all of the timeb. Sometimes, only when it is convenient c. Never, this issue does not concern me

55%

45%Yes, all of the time

Sometimes, only when convenient

Never, issue doesn't concern me

8. If you answered ‘yes’ to Question #6, where did you originally hear about fair trade coffee?

a. Tim Hortonsb. Starbucks c. School or workd. News or media

2%

10%

45%

43%Tim HortonsStarbucksSchool/WorkNews/Media

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9. If you answered 'no' to Question #6; please read the definition and answer the following question. The term fair trade refers to better business practices between coffee farmers, traders and buyers. As it stands right now, coffee farmers are struggling in many producing countries; getting paid next to nothing for their crops. To put this in perspective, on average, farmers receive $1 per pound of coffee. Coffee shops throughout North America serve 30-40 cups per pound of coffee. This equates to roughly $100/pound going into the retailer's pocket. From when the farmer sells their coffee beans, to when we drink our cup of coffee, the cost has risen 100 times that of the original price. Fair trade organizations create trading partnerships that seek greater equity; to ensure the farmers are being compensated with fair wages and proper working conditions. After reading a brief overview of the concept of fair trade, would you be more likely to purchase coffee that is stamped with the 'Fair Trade Certification'?

a. Yesb. No

74%

26%

Yes No

10. After hearing more about this issue, will you change your buying behaviour as it relates to coffee?

a. Yes, I want to help promote fair trade practices b. No, this issue doesn’t concern me

71%

29%

Yes No

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