An estimated 70 to 80 percent of world coffee production is provided by small farmers, who are highly dependent on intermediaries and the whims of the market. Producers reap the benefits of the Fairtrade-labelled market, especially during extensive periods of relative low coffee prices, when farmers are able to survive because of their long-term relationships with registered buyers and minimum price guarantees.
Fairtrade coffee sales benefit producers both directly and indirectly. The Fairtrade price is comprised of a Minimum Price and a Social Investment Premium. Everyone benefits from the higher price and the members of the organisation decide democratically how to use the premium for the benefit of their local community or for strengthening their oganisations.