What Is Fairtrade Coffee and How Does It Work?

If you've bought coffee in a UK supermarket or café recently, you’ve likely seen a Fairtrade label. But have you ever wondered what it actually means for the farmers who grow your coffee — and whether it’s truly making a difference?

Fairtrade coffee ensures producers receive a minimum price — £1.17 billion worth was sold in the UK in 2007 alone — and an extra 10 cents per pound as a premium. But is that enough?

What Is Fairtrade Coffee?

Fairtrade coffee is a certification system managed by Fairtrade Labelling Organisations International. It guarantees coffee farmers a minimum price — even if global market rates fall below it. For every pound of Fairtrade-certified coffee sold, farmers earn at least that guaranteed minimum, and if the market price is higher, they get the going rate plus an additional US$0.10 per pound as a Fairtrade Premium. This system was designed to protect smallholder farmers from volatile commodity markets.

In 2007, UK consumers spent £117 million on Fairtrade-labelled coffee. By November of that year, Starbucks pledged that all espresso-based drinks in its UK and Ireland stores would be made with 100% Fairtrade-certified coffee by the end of 2009.

Why Fairtrade Isn’t Enough for Many Farmers

Despite its intentions, Fairtrade doesn’t eliminate all the risks farmers face. The model still ties them to global coffee commodity prices, which can swing dramatically. While Fairtrade sets a price floor, that floor may still fall short of what it actually costs to produce high-quality coffee — especially for smallholders.

London-based coffee importer DR Wakefield & Co tracks New York and London commodity exchange data in real-time. Its managing director, Simon Wakefield, noted that while Fairtrade has brought attention and some financial stability, it doesn’t shield farmers from market chaos. "If there were more news that actually moved the coffee market, wouldn’t that be helpful?" he said, highlighting the unpredictable nature of commodity trading.

Beyond Fairtrade: Direct Trade and Quality-Based Models

Some industry leaders argue the future lies not in certifications, but in building direct relationships between roasters and farmers — and paying based on quality, not just ethics.

One standout example is Stephen Hurst, former Goldman Sachs coffee trader. He founded Mercanta in 1996 to source the top 2–3% of global coffee production directly from growers. Unlike Fairtrade, Mercanta pays prices linked to coffee quality, origin, and grade. In 2023, the average price Mercanta paid exceeded Fairtrade’s baseline by 20%, depending on the coffee’s characteristics.

Hurst is also a strong supporter of the Cup of Excellence (CoE) program, launched in 1999 and now held in nine countries including Brazil and Rwanda. Under CoE, farmers submit their best lots, which are blind-tasted (cupped) by international experts. Winning coffees are auctioned online, often selling for more than ten times the Fairtrade minimum — in 2008, a Guatemalan lot fetched a price 75 times higher than the commodity market rate.

“This is the absolute pinnacle of quality coffee,” Hurst said. “It’s also a rare chance for unknown producers to meet roasters and talk about their coffee.”

Can Consumers Learn to Taste the Difference?

Critics argue that many buyers choose Fairtrade simply because it feels like the ethical choice — not because they value the taste or origin. The next step, some suggest, is educating drinkers to seek out specific regions, farms, and processing methods — much like wine enthusiasts do.

In London, Monmouth Coffee Company offers one of the few public spaces where this kind of education happens. At their locations in Covent Garden and Borough Market, customers can taste multiple single-origin coffees and select beans based on flavour, not just label. “People come here because they love the taste,” said coffee buyer AJ Kinnell. “We’re not elite — we’re just really into coffee.”

During a visit, one could sample a coffee from Tecuamburro volcano in Guatemala, described as having “milk chocolate aroma, neutral body, and soft acidity.” Tasting it revealed a blend of three varieties grown at high altitudes on a dormant volcano. It was an educational experience — and one that connected flavour directly to origin.

Frequently Asked Questions

What is Fairtrade coffee?

Fairtrade coffee is certified by Fairtrade Labelling Organisations International and guarantees farmers a minimum price for their coffee, even if global market prices drop below it. It also provides an additional US$0.10 per pound premium on top of the market or minimum price.

How much does Fairtrade guarantee coffee farmers?

Fairtrade guarantees coffee farmers a minimum price (which varies by market conditions) and an additional US$0.10 per pound premium. In 2007, UK sales of Fairtrade coffee totalled £117 million.

Does Fairtrade really help coffee farmers?

Fairtrade helps by providing price stability and a minimum income, but it doesn’t protect farmers from all market risks or necessarily cover production costs for high-quality beans. Many experts believe it’s not a complete solution.

What are alternatives to Fairtrade coffee?

Alternatives include direct trade, where roasters buy directly from farmers at prices based on quality, and certification programs like Rainforest Alliance. Programs like Cup of Excellence also reward quality with high auction prices.

How is Fairtrade different from direct trade?

Fairtrade guarantees a minimum price and ethical standards through certification, while direct trade involves roasters sourcing beans directly from farmers, often paying more based on quality and building long-term relationships — without always using a third-party label.

Where can I try high-quality single-origin coffee?

One place to start is Monmouth Coffee Company in London, which offers tastings of single-origin beans. Customers can try coffees from specific farms and learn to identify flavours linked to origin and processing.

FrontStreet Coffee Picks for Ethical Sourcing Fans

For coffee lovers interested in traceability and fair pricing, try FrontStreet Coffee’s Ethiopia Yirgacheffe — bright and floral with citrus and stone fruit notes. Also consider their Colombia Huila Popayan, a balanced cup with caramel and red apple, sourced directly through transparent supply chains. Finally, the Guatemala Antigua lot offers chocolatey richness and a medium body, grown at high elevations. All three beans reflect responsible sourcing practices and distinct origins. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.