The fair trade chocolate label on chocolate promises better conditions for cocoa farmers. But what does it actually mean and is fair trade chocolate worth the chocolate premium?
How Fair Trade Works
Fair trade certification sets a minimum price for cocoa beans. When market prices drop below this minimum farmers receive the guaranteed fair trade price instead. The system also includes a premium paid on top of the purchase price that goes to community development projects including schools and healthcare.
Fair Trade vs Direct Trade
The criticism of fair trade is that the minimum price is still low relative to the cost of quality production. Farmers who produce fine flavour beans can earn significantly more through direct trade relationships. The luxury chocolate pricing often includes direct trade premiums that far exceed fair trade minimums.
Fair trade is better than commodity trading. But direct trade often delivers better outcomes for both farmers and chocolate quality. When you want to buy chocolate from makers who pay farmers fairly explore the range at BuyChocolate.org.
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