How is the fair trade price set for coffee?

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How is the fair trade price set for coffee?

In: Economics

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Each product is certified based on several factors. Fair Trade does not mean that a certain price was agreed upon specifically. Instead, the product is certified to have been fair to everyone involved in the production, refinement, transportation and logistics. According to their website these factors are “Income sustainability”, meaning that workers are able to have enough earnings to buy food and have acceptable housing, “Empowerment”, meaning that workers are able to make choices for themselves about what is best for them and their community, “Individual and Community Well-being”, meaning how the workers and communities are able to reinvest in themselves, and “Environmental Stewardship”, meaning how much the product and work impact the environment. More information here: [Fair Trade Website](https://www.fairtradecertified.org/why-fair-trade)

TLDR; The certification means that workers were not exploited (taken advantage of) and have some level of freedom and liberty in their life and choices.