“Shade grown coffee” is coffee that is grown beneath shade providing trees. This means that trees are not cut down to produce the coffee and preserves the habitats of birds. “Fair Trade” coffee refers to the coffee growers and means that they are paid fair wages for their products and efforts and that the conditions under which the coffee was purchased are fair.
The terms “fair trade” and “shade grown” have little to do with eachother. Fair trade refers to the practices of both economic and environmental responsibilities. It ensures that the workers are paid a fair wage and that they use responsible farming practices.
Shade grown coffee is just that, grown in the shade. Coffee was originally grown under the shade of trees, but farmers have often switched to varieties that do not like to be grown under trees. Growing coffee under the shade has the benefit that the trees enrich the soil and fix nitrogen, and they can provide habitats for other creatures like birds. Many farmers presumably cut the trees down to make more room for their coffee plants.
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