In the article, Going beyond fair trade: The benefits and challenges of direct trade,
Steven Macatonia argues that while fair trade coffee is economically beneficial for farmers, there are challenges due to the higher price for consumers. Fair trade guarantees that farmers get paid a fair price for their harvest, which promotes farmers’ living standards as their income increases. Macatonia argues that even though fair trade supports the livelihoods of coffee farmers, only the large co-operative coffee farms can enter a fair trade agreement, while small family farms cannot. In addition, Steven points out that fair trade coffee farmers lack the incentive to supply high quality coffee beans since they can get the same price for low quality beans.
Steven Macatonia argues that while fair trade coffee is economically beneficial for farmers, there are challenges due to the higher price for consumers. Fair trade guarantees that farmers get paid a fair price for their harvest, which promotes farmers’ living standards as their income increases. Macatonia argues that even though fair trade supports the livelihoods of coffee farmers, only the large co-operative coffee farms can enter a fair trade agreement, while small family farms cannot. In addition, Steven points out that fair trade coffee farmers lack the incentive to supply high quality coffee beans since they can get the same price for low quality beans.