Supporting Fair Trade Coffee through Micro Finance

By Erica

I have previously written posts on both fair trade and micro finance, and the pros and cons that go hand-in-hand with both.  Fair trade is often a topic riddled with controversy surrounding what is actually fair trade and is it actually supporting who it needs to support.  Often farmers who are actually fair trade may struggle with start up costs or wind up paying hefty fees to support a fair trade or organic status.  This often winds up in a familiar scenario of the big guys once again winning out due to their more substantial finances.  However, a new consumer finance model called Grow Ahead is looking to solve this problem and support small scale coffee farmers through consumer lending.  Farmers need money to plant/grow their crop, but if they don’t have left over money from last year, and they have not yet turned any profit this year, they struggle to make that initial investment into this years crop.  This is where Grow Ahead comes in.  In a nut shell, they ask you, the consumer, to loan money to the farmer.  So just say you loan $25 dollars to a farmer through Grow Ahead.. your loan, along with the loans of others, lets this farmer plant his crop.. once the crop has been harvested, and the farmer has sold his crop, you get your loan back.. pretty cool!!  Click here to check out their site!

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