Abstract
The Fair Trade coffee market has emerged as a response to the adverse conditions faced by small-scale coffee producers. Though the market has grown steadily, it has received criticism from inside and outside the Fair Trade system. This paper examines three critical elements of Fair Trade certification to find theoretical and empirical support and rebut of the criticisms that the market is too limited, is inefficient and encourages over production. We find the Fair Trade coffee market has been successful at improving living conditions for a select group of coffee producers without causing significant market distortions to non-Fair Trade producers.
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