The International Fair Trade Association (IFAT), the European Fair Trade Association (EFTA) and Fair Trade Labelling Organisations International (FLO) want to improve the understanding of Fair Trade’s social and economic context and give recommendations on how the economic and social situation of low-income producers can be improved. The coffee value chain analysis that is presented in this report is part of a larger project that further includes value chain analyses of rice, handicrafts, cotton and textiles. The overall aim of the project is to use value chain analysis to clarify the relative merits of Fair Trade relationships with coffee farmers compared with other ethical schemes.