Free Trade

Free trade is a market model in which the flows of goods within or between countries continues without the intervention of government restrictions such as: tariffs, taxes etc. These impositions may increase the price of the good to the consumer or producer. According to David Ricardo's argument of comparative advantage free trade without the intervention of government will benefit both the producer and consumer because the sides have different opportunity costs. Opportunity cost is the price you pay for doing one thing instead of another. Therefore those with the lowest opportunity cost will produce the good making it cheapest for the consumer.

For more on David Ricardo: http://en.wikipedia.org/wiki/David_Ricardo

For more on History and how free trade has evolved:

http://en.wikipedia.org/wiki/Free_trade

Fair Trade

Fair trade is an organized social movement aiming to alleviate global poverty and promote sustainability. The movement believes in paying what it feels to be the fair price for a good. The fair price helps ameliorate the areas social and environmental standards to helps sustain the production of the good. Besides its social aura some critics see it as a type of subsidiary actually getting in the way of free trade. Fair trade coffee has been designed to assist poor coffee farmers that are producing high quality gourmet/organic coffees. More on Fair Trade: http://en.wikipedia.org/wiki/Fair_Trade#Rise_of_labelling_initiatives

Fair Trade Labeling Initiatives

There was no way to start the fair trade initiative until the consumer could see a visual identifier for a fair trade product. With the labeling the consumer could understand that the product being paid for is helping sustain the product and the community around the product.

The Dilemma

Many consumers are not seeing dropping prices in coffee however the producers are getting $.50 / pound (Aug. 2001). Thus the retailers are getting the profit while the producers of the coffee are not. Fair trade coffee arose from the consumers' growing concern for the fair trade coffee producer. It has become and important issue for coffee lovers and connoisseurs to support the local farmers. They can do so through fair trade coffee. Otherwise many coffee growers in Asia, Africa, Latin America and the Caribbean are forced to abandon their ways of growing coffee for cheaper methods and thus sacrifice the coffee's quality.

Shade: Major Issue for Coffee Growth

The best conditions for coffee growth is a shade abundant plantation. Beans grown in shade mature more slowly. This allows the bean to create more natural sugars, less caffeine and a fuller flavor. Abandoning these methods for faster sun -cultivated methods, decrease the depth of flavor in the coffee been. In addition sun cultivation destroys vast forest lands. In addition vast amounts of fertilizer and pesticides need to be utilized.

Shade growing benefits

Fair trade supports the shade coffee growing method. The benefits are better coffee beans, less de-forestation, better soil that can be used in future generations, environments for songbird communities and the communities of coffee farmers.

Fair Price for Quality

The idea of fair trade is to pay the farmer directly avoiding the middle man. Thus the coffee connoisseur would pay directly for quality instead of for transaction fees. Since many coffee companies get their coffee directly from the producer there is no negative effect on the consumer's wallet, but instead on that of the middle man. By buying fair trade coffee the consumer is helping the farmer sustain his way of life and that of the environment that allows for the better coffee production.

Where can I buy Fair Trade Coffee?

As consumers especially are getting more aware of their impact on the world they are demanding that people and our environment are treated with respect. Thus more stores are giving the consumer an option to buy fair trade items not only coffee. In New York City for example there is Whole Foods, Trader Joes, Eli's etc and other gourmet not terribly expensive stores that offer the consumer the choice to buy fair trade goods.

Some options online to buy fair trade Coffee

http://www.georgettes.org/store/fair_trade.html?gclid=CMSilbGE6JMCFQrPGgodWFzZWA

http://coffeebeandirect.com/fair-trade.php?gclid=CJrZn7SG6JMCFQNHFQod43r4Vw

http://www.womensbeanproject.com/online-store-organic-fair-trade-coffee.html

http://www.globalexchangestore.org/coffee.html?gclid=CNSiqfeG6JMCFQOjFQodmEXPVQ

More facts and interesting stories on Coffee

http://www.coffee.net/coffee/

Enjoy that cup of free trade coffee with the understanding that you are contributing.