Before fair trade was introduced, the big � very, very big � business of coffee was all about the huge corporations, and maximizing their profits. This meant that most of the billions of dollars made from coffee growing went mostly into those corporations' pockets, but was also funneled to the various middlemen between farmer and consumer.
The coffee farmers themselves were often left with almost no money at all, as a reward for their labors. And as markets fluctuated, and supplies were artificially cut back to keep those huge profits up, …show more content…
In the past, these agricultural workers either had to live on a pittance or else live on aid provided by governments and charitable organizations.
Switching to the fair trade method, now the farmers could live by the sweat of their own brow, not relying on handouts but earning a fair wage for the work they did. Since fair trade programs have been introduced, the excess profits have been used in the farmers' communities as well, helping to promote organic farming, building schools and clinics, and promoting the teaching of new community leaders.
Critics claim that since fair trade programs encourage more farmers to engage in growing coffee, the law of supply and demand might create a surplus on the market, meaning not all farmers will be able to sell their product.
This may turn out to be the case if people start drinking less coffee, but so far that doesn't seem likely. Others worry, though, that since big corporations like Starbuck's, Folger's, and even McDonald's now sell fair trade coffee, the moral, democratic underpinnings of the practice may be compromised, perhaps sooner rather than later.
It usually doesn't take long for a big corporation to start cutting back on the workers' wages, to funnel more money into its own