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  1. Home/
  2. Glossary/
  3. Fair trade

Origin & sourcing

Fair trade

A third-party certification that guarantees farmers a minimum price floor and a community-development premium on every pound of coffee sold under the label.

  • Availability: Common

Fair Trade — administered by organizations like Fairtrade International and Fair Trade USA — sets a minimum price farmers receive when commodity prices fall and adds a per-pound social premium that goes to cooperative-led community projects. It is the most widely recognized ethical-sourcing label on a coffee bag, but specialty roasters often argue that direct-trade prices exceed the Fair Trade floor anyway. The two models can coexist: a coffee can be both Fair Trade certified and sourced through a direct relationship.

Related terms

  • Direct trade
  • Cooperative
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