Brewing development through fair trade: possibilities and constraints in the coffee industry

Fair trade is increasingly promoted to consumers as a way to help developing world producers, despite the fact that the effects of the movement have been largely unanalysed. In an effort to determine fair trade’s ability to act as a development tool, this paper examines some of the possibilities and constraints of fair trade within the coffee industry. Fair trade offers various benefits including a higher market price, improved access to credit, a social premium for development initiatives, and training for farmers. However, not only are there limits to these very benefits, but also concerns about the size of the fair trade market, the lack of understanding about fair trade, the dangers of commodity production, and the influence of new corporate actors. Overall, the benefits of fair trade proved limited and inconsistent. Fair trade offers some short-term, isolated benefits, but is not a long-term solution to poverty alleviation or development.