1. Purchased directly from small farmers organized into democratically run cooperatives
  2. Guarantees a floor price when world market prices are low
  3. Offers farmers advance prefinancing (credit) to help cover harvest costs
  4. Develops long-term trading relationships between importers and farmer cooperatives

Most coffee retailers sell Fair Trade Coffee at a premium. Why? Because customers are willing to pay more for a socially responsible product. The more expensive cost is only a small fraction of the price hike.

In North America and Europe, we have all kinds of regulatory agencies (Dairy Council ect.) that ensure that our farmers get paid enough, so why shouldn't that happen in developing countries as well?