For several years, consumers have been becoming more aware of how their purchases affect the poor in other countries. One result of such awareness has been the creation of the “Fair Trade” coffee brand.
“Fair trade” coffee has been certified to meet specific requirements, such as paying laborers their country’s minimum wage, in an effort to combat low-wage labor exploitation. Consumers pay a higher price for this certification on their coffee.
The question remains, however: Does buying “fair trade” coffee really benefit poor migrant workers in third world nations?
LearnLiberty argues that buying premium coffee is actually more effective than buying “fair trade” coffee because laborers growing and picking higher quality beans are paid more than those growing “fair trade” coffee.
Watch this video from LearnLiberty to learn more.