Even when prices rise, the producers can neither expect to see any benefits, nor count on prices staying high. Meanwhile, in developed countries, consumers are more willing than ever to pay premium prices for high quality coffee. To retailers, roasters, exporters, processors, taxing agencies, creditors, and a cast of middlemen known derisively as coyotes. Less than ten percent of that price goes to the farmers, upon whom coffee quality depends. And it s clear that they can t count on high prices to remain high long enough to break their cycle of poverty.
Alternative trade cuts out the middlemen in the export country.
Alternative trade goes far beyond charity. They use their dollars to vote for fair trade. Rather than making a donation to charity after the company s costs are secured, ATOs give up-front, in the form of premium prices for farmer s crops. Over time, the premiums pay farmers up to twice what they would have received on the open market. That s the difference alternative trade makes.