Fair Trade & Equal Exchange
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Fair Trade and the Coffee Crisis in the Nicaraguan Segovias RENÉ Mendozaand JOHAN BASTIAENSEN
Fair trade and the coffee crisis in the Nicaraguan Segovias RENÉ MENDOZ Aand JOHAN BASTIAENSEN Small coffee producers in Nicaragua have faced a crisis as the coffee export price has halved since the 1990s. This article examines the role of fair trade in stabilizing prices for small coffee producers, and compares the prices all along the supply chain of the instant coffees, Nestlé and Cafédirect. Although Cafédirect’ s price guarantee has prevented produc- ers from going bankrupt, it is clear that the processing and retail side has become more expensive since the 1990s, partly as a result of the small volumes traded. Cafédirect’ s high prices compared with commercial brands are likely to ensure that it remains small, and therefore only bene- fits a minority of producers. The authors examine the options for Nicaragua’s small coffee produc- ers and recommend that the producers upgrade their production and post-harvest technologies to produce high-quality specialty coffees which can command high prices even without a fair trade tag. They also recom- mend that the co-operatives be strengthened to be less inefficient and more accountable to their membership. ASIN OTHER COFFEE -EXPORTING COUNTRIES , Nicaraguan coffee producers currently face one of the most dramatic crises of the sector. Since 2000, Nicaragua’s coffee export price has gone down to less than Nicaragua’s coffee US$1300/tonne: about half of the average price levels in the 1990s. In the export prices have midst of this, all actors involved in the country’s major agricultural activ- ity struggle to survive in the hope of better times to come. -
The Impact of Fair Trade Coffee on Economic Efficiency and the Distribution of Income
The Impact of Fair Trade Coffee on Economic Efficiency and the Distribution of Income Gareth P. Green Matthew J. Warning Dept. of Economics Dept. of Economics Seattle University University of Puget Sound Introduction Fair Trade Certified™ coffee is receiving increasing attention both by the public and by academic researchers. Fair Trade1 emerged as a response to the adverse conditions faced by small-scale coffee producers in developing countries. Individual small-scale producers have no direct access to international markets and must sell their coffee to local intermediaries. These intermediaries are widely perceived to have monopsonistic2 power in the coffee market at the level of rural communities. The weak bargaining power of producers results in the producers receiving prices below market value, an amount which is ultimately as little as two to four percent of the final retail price of coffee (Transfair, 2007). In addition to these difficult local conditions, coffee producers must also contend with the vicissitudes of the highly volatile global coffee market as illustrated in Figure 1. Coffee prices respond to many variables including weather conditions (particularly frosts in Brazil), pest infestations and the actions of traders and speculators in global coffee commodity exchange. This price instability results in dramatic income fluctuations for 1In this paper we follow the convention of the academic literature, capitalizing Fair Trade when used in reference to coffee certified under the Fairtrade Labeling Organizations International system, and using lower case when discussing more general issues of fairness in the international trading system. 2 Monopsony is analogous to monopoly but concerns the buyer’s side of the market. -
NO CHILD SHOULD Ever BE for SALE
NO CHILD SHOULD EVER BE FORV ERYSALE JOIN THE FIGHT TO END CHILD SLA CHOCOLATE UNWRAPPED Canadians and chocolate: We’re inseparable. We are a nation of chocolate lovers, and on average each of us consumes almost 3.9 kg of chocolate per person every year, including our favourites Kit Kat and Coffee Crisp candy bars. And every year, records show we manage to eat more. Our growing chocolate habit, however, comes at a high cost. In most cases, the cocoa used to make our chocolate indulgences comes from the hands of child labourers. Cocoa is grown in various parts of the globe, including Asia and South America, but by far the largest producer is West Africa, where two coun- tries – Ghana and Côte d’Ivoire – account for 60 percent of the world’s cocoa crop. Here, the majority of cocoa is grown on small family farms – many as small as the size of a baseball diamond. It’s estimated that there are more than 1.5 million of these farms across both countries. It’s also estimated that 1.8 million children work there. OUR GOAL: THAT ALL OF THE WORLD’S THE BITTER TRUTH CHOCOLATE BE ETHICALLY SOURCED BY 2O2O Farm life for many children is anything but wholesome and carefree. Cocoa farming in West Africa is hard work, done with basic tools JOIN WORLD VISION TO MAKE IT HAPPEN. and old farming practices. Child labourers on these farms may: a. Work long hours in extreme heat. b. Carry heavy tools. c. Use machetes to clear land and harvest cocoa. -
Humanizing the Economy
! Humanizing the Economy Co-operatives in the Age of Capital John Restakis September, 2016 !2 Table of Contents Introduction 1. The Grand Delusion p. 23 2. The Materialization of Dreams p. 57 3. Co-operation Italian Style p. 104 4. Socializing Capitalism – The Emilian Model p. 134 5. Social Co-ops and Social Care p. 156 6. Japan – The Consumer Evolution p. 201 7. Calcutta - The Daughters of Kali p. 235 8. Sri Lanka - Fair trade and the Empire of Tea p. 278 9. Argentina: Occupy, Resist, Produce p. 323 10. The Greek Oracle p. 365 11. Community in Crisis p. 414 12. Humanizing the Economy p. 449 Foreward When I commenced writing this book in November 2008, the financial crisis that was to wreak global havoc had just exploded and a young senator from Illinois had just been elected America’s first black president. It seemed a turning point. The spectacular failure of the free market ideas that had dominated public policy for a generation seemed at last to have run their course. It seemed a time of reckoning. Surely the catastrophic costs of these policies would call down the reforms needed to curtail the criminal excesses of a system that had brought the global economy to the brink of ruin. The yearning for change that had propelled the election of a charismatic and still youthful president seemed a propitious omen for the pursuit of a vigorous and pro- gressive agenda that would finally address the grave faults of an economic and polit- ical system that had lost all legitimacy. -
The Future of Fair Trade Coffee: Dilemmas Facing Latin America's Small-Scale Producers Author(S): Douglas L
Oxfam GB The Future of Fair Trade Coffee: Dilemmas Facing Latin America's Small-Scale Producers Author(s): Douglas L. Murray, Laura T. Raynolds and Peter L. Taylor Source: Development in Practice, Vol. 16, No. 2 (Apr., 2006), pp. 179-192 Published by: Taylor & Francis, Ltd. on behalf of Oxfam GB Stable URL: http://www.jstor.org/stable/4029878 . Accessed: 13/12/2013 07:44 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. Taylor & Francis, Ltd. and Oxfam GB are collaborating with JSTOR to digitize, preserve and extend access to Development in Practice. http://www.jstor.org This content downloaded from 129.82.28.124 on Fri, 13 Dec 2013 07:44:01 AM All use subject to JSTOR Terms and Conditions Development in Practice, Volume16, Number2, April 2006 lRTaylorE&FranciSsGroup The future of Fair Trade coffee: dilemmas facing Latin America's small-scale producers Douglas L. Murray, Laura T. Raynolds, and Peter L. Taylor Fair Tradehas become a dynamic and successful dimensionof an emerging counter-tendency to the neo-liberal globalisation regime. This study explores some of the dilemmasfacing the Fair Trade movementas it seeks to broaden and deepen its impact among the rural poor of Latin America's coffee sector. -
Issue of the Year the Splintered State of Fair-Trade Coffee
TRENDS by Dan Leif issuE of ThE YEaR The splinTered sTaTe of fair-Trade coffee When Fair Trade USA announced last September that it FTUSA’s decision to separate from Fairtrade International was was splitting from longtime parent organization Fairtrade part of a play to grow fair trade on both ends of the supply chain. International, the feedback from some segments of the American Last year FTUSA unveiled a push called Fair Trade for All, with fair-trade-coffee community was biting and resounding. “It’s a the stated goal of doubling the organization’s impact by 2015, betrayal,” Rink Dickinson, co-executive director of roaster Equal and it felt it could more effectively do so by flying solo. As part Exchange, told The New York Times. of its long-term effort to bring more producers into the system, Seemingly overnight, the country’s fair-trade arena became FTUSA launched a pilot project to open fair-trade certification fractured—and a whole lot more confusing to the average spe- to estates and small independent farmers, and it was this idea cialty coffee professional. For well over a decade, American coffee that sparked the wrath of Equal Exchange and a group of other companies had used the certification as a tool to clearly com- fair traders who hold strongly to the notion that when it comes municate business and sourcing ethics to customers. However, in to coffee growing, only small farmers organized into co-ops the months since FTUSA’s announcement should be eligible for fair-trade premi- (and official separation from Fairtrade ums and other producer benefits. -
Starbucks Vs. Equal Exchange: Assessing the Human Costs of Economic Globalization
University of Nebraska - Lincoln DigitalCommons@University of Nebraska - Lincoln Nebraska Anthropologist Anthropology, Department of 1997 Starbucks vs. Equal Exchange: Assessing the Human Costs of Economic Globalization Lindsey M. Smith Follow this and additional works at: https://digitalcommons.unl.edu/nebanthro Part of the Anthropology Commons Smith, Lindsey M., "Starbucks vs. Equal Exchange: Assessing the Human Costs of Economic Globalization" (1997). Nebraska Anthropologist. 111. https://digitalcommons.unl.edu/nebanthro/111 This Article is brought to you for free and open access by the Anthropology, Department of at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Nebraska Anthropologist by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. Starbucks vs. Equal Exchange: Assessing the Human Costs of Economic Globalization Lindsey M. Smith This paper discusses the impact of economic globalization on human populations and their natural environment. Trends leading to globalization, such as multilateral and bilateral trade 8fT88ments which reduce trading barriers between countries, are discussed. According to the economic principle of comparative advantage, all countries which specialize in what they can produce most efficiently should benefit equally from fair trade. Developing countries must increasingly rely on cheap labor and low environmental standards to compete for foreign investment and capital in the global economy. Observers argue that the market is not free enough to conect the long-term damage associated with export policies like this. Poverty, misery and social stratification are increasing in many developing countries as a result. A case study of the coffee industry in Latin America provides evidence of the consequences of globalization policies on the most vulnerable populations. -
What Is Fair Trade?
What is Fair Trade? . A system of exchange that honors producers, communities, consumers and the environment. A model for the global economy rooted in people-to-people connections, justice and sustainability. A commitment to building long-term relationships between producers and consumers. A way of life! Fair Trade - Criteria . Paying a fair wage . Giving employees opportunities for advancement . Providing equal employment opportunities for all people, particularly the most disadvantaged . Engaging in environmentally sustainable practices Fair Trade - Criteria . Being open to public accountability . Building sustainable long-term trade relationships . Providing healthy and safe working conditions . Providing financial and technical assistance to producers whenever possible What does the Fair Trade label look like? What does the Fair Trade label mean? Fair Price Democratically organized groups receive a minimum floor price and an additional premium for certified organic agricultural products. Farmer organizations are also eligible for pre-harvest credit. Artisan groups and cooperatives receive a fair living wage for the time it takes to make a product. What does the Fair Trade label mean? Fair Labor Conditions Workers on fair trade farms and other environments enjoy freedom of association, safe working conditions, and living wages. Forced child labor is strictly prohibited. What does the Fair Trade label mean? Direct trade Importers purchase from Fair Trade producer groups as directly as possible, eliminating unnecessary middlepersons and empowering farmers and others to develop the business capacity needed to compete in the global marketplace. What does the Fair Trade label mean? Democratic and transparent organizations Workers decide democratically how to invest Fair Trade revenues. What does the Fair Trade label mean? Environmental Sustainability Harmful agrochemicals and GMOs are strictly prohibited in favor of environmentally sustainable farming methods that protect farmers’ health and preserve valuable ecosystems for future generations. -
Ulk Scientific Journal Vol. 36
KIGALI INDEPENDENT UNIVERSITY ULK P.O BOX: 2280 KIGALI Tel: 0788304081/0788304084 Website: http://www.ulk.ac.rw E-mail:[email protected] ULK SCIENTIFIC JOURNAL VOL. 36 ISSN 2308-5843 EDITIONS OF THE KIGALI INDEPENDENT UNIVERSITY ULK May, 2017 -1- ULK SCIENTIFIC JOURNAL VOL. 32, 2015 DISCLAIMER Views expressed in this publication are personal views of the article authors and do not necessarily reflect views of ULK. -2- 2 TABLE OF CONTENTS Fair Trade Certified Coffee Cooperatives and Socio - Economic Development of Farmers in Rwanda: A case study of Maraba Coffee Cooperative By: Dr MBERA R Zenon NTIHINYURWA Arcade Interdisciplinary Approach between Law and Science Technology for Sustainable Development of Justice in Rwanda: A new Legal Perspective By: Dr. Murangira B. Thierry Effects of Customer Satisfaction on Financial Performance of Financial Institutions: Case of BPR, Nyamagabe Branch(2013-2015) By: Dr. RUTUNGWA Eugène HABAKUBANA Egide The role of Monitoring and Evaluation to Construction Projects Success in Rwanda A Case of Genocide Survivors’ Settlement Project in Gasabo District By: Dr MBERA R Zenon MUTIGANDA Onesphore -3- -4- FAIR TRADE CERTIFIED COFFEE COOPERATIVES AND SOCIO - ECONOMIC DEVELOPMENT OF FARMERS IN RWANDA A CASE STUDY OF MARABA COFFEE COOPERATIVE Authors: Dr MBERA R Zenon1 NTIHINYURWA Arcade2 1 Researcher & Academician, ULK – Republic of Rwanda 2 Researcher & Consultant -5- ABSTRACT Coffee is the most valuable and widely traded tropical agricultural product, but many of farmers fail to earn a reliable living from coffee. Farmers are frequently reported to be trapped in the vicious cycle of lack of profitability and lack of access to finance. -
Marketing Strategy Proposal for Saxbys Coffee THM 3396
Marketing Strategy Proposal for Saxbys Coffee THM 3396 Marketing in Tourism & Hospitality Amanda Molinaro April 2016 1 Executive Summary Saxbys Coffee Company was founded in 2005 and currently operates at a small local level of 30 cafes nationwide. Our mission is to “Make Life Better” and we do this through our selective hiring and training process of staff as well as our unique company values. Our community values are one of our strengths which separates us from our competitors. Saxbys offers a wide range of healthy and dietary friendly food and beverage products from local companies, one of which is Trade Stones Confections. We are very active on social media with a large following presence. We provide our customers with a rewards program through our mobile app as well as an option to use the app as a payment method. We are concerned with sustainability and use 100 percent recyclable products in our cafes in order to appeal to our customers’ needs. Some concerns we have about our organization are our low brand awareness, inconsistency in cafe offerings, and negative online reviews. The everyday Saxbys customer is a millennial or on-the-go professional. Our cafes attract this market through our local coffee house feel, our convenient locations, and our healthy menu offerings. Trends among these consumers include increased environmental concern and awareness which has led to an increase in the “brew at home” lifestyle. Customers are also concerned with health and ethics regarding their food and beverage options which has led to a sharp increase in gluten free and dairy free lifestyles among consumers. -
The Hershey Company and the Cocoa Controversy
Center for Ethical Organizational Cultures Auburn University http://harbert.auburn.edu The Hershey Company and The Cocoa Controversy INTRODUCTION Chocolate is enjoyed by millions, mainly in decadent desserts, candies, and drinks. It contains fiber, iron, magnesium, copper manganese, potassium, phosphorus, zinc and selenium, which are nutritional antioxidants. Dark chocolate, with at least 70% cocoa, is considered protective against heart disease because it can reduce blood pressure, improve blood flow, raise HDL cholesterol (known as the good cholesterol), and lower total LDL cholesterol, or less desirable cholesterol. In one study, it was shown to reduce calcified arterial plaque by 32%. Other studies indicate that long term consumption of dark chocolate may protect skin from sun damage and reduce the risk of cancer, help with cognitive function in elderly people, and improve brain blood flow, oxygen levels and nerve function. As science learns more about the health benefits of dark chocolate, its demand continues to grow. Developing countries are discovering that chocolate beans improve their sweet treats and candies, thus creating even greater worldwide demand. Cocoa beans grow mostly in tropical climates, mainly in Western Africa, Asia and Latin America, the largest exporters being Ghana and the Ivory Coast. With over $7.5 billion dollars in sales every year, the Hershey Company is one of the world’s largest producers of chocolate and candy products. Hershey’s products are sold in more than 70 countries and include Hershey’s Kisses and Hershey’s Milk Chocolate Bars as well as brands such as Reese’s, Whoppers, Almond Joy, and Twizzlers. Although Hershey strives to be a model company and has several philanthropic, social, and environmental programs, the company has struggled with ethical issues related to the labor issues associated with West African cocoa communities, including child labor. -
Pathways to Just, Equitable and Sustainable Trade and Investment Regimes
Schulich School of Law, Dalhousie University Schulich Law Scholars Reports & Public Policy Documents Faculty Scholarship 7-2021 Pathways to Just, Equitable and Sustainable Trade and Investment Regimes Tomaso Ferrando University of Antwerp, Belgium Nicolas Perrone University of Andres Bello, Chile Olabisi D. Akinkugbe Dalhousie University Schulich School of Law Kangping Du SISU, China Follow this and additional works at: https://digitalcommons.schulichlaw.dal.ca/reports Part of the Business Organizations Law Commons, Environmental Law Commons, Law and Gender Commons, and the Law and Society Commons Recommended Citation Tomaso Ferrando et al, "Pathways to Just, Equitable and Sustainable Trade and Investment Regimes" (Fairtrade Germany and Fairtrade Australia, 2021). This Report is brought to you for free and open access by the Faculty Scholarship at Schulich Law Scholars. It has been accepted for inclusion in Reports & Public Policy Documents by an authorized administrator of Schulich Law Scholars. For more information, please contact [email protected]. 1 Pathways to Just, Equitable and Sustainable Trade and Investment Regimes Authors: Dr. Tomaso Ferrando (University of Antwerp, Belgium) Dr. Nicolas Perrone (University Andres Bello, Chile) Dr. Olabisi Akinkugbe (Dalhouise University, Canada) Dr. Kangping Du (SISU, China) This study was commissioned by the Fairtrade Germany and Fairtrade Austria. The contents of this document are the sole responsibility of the authors and can under no circumstances be regarded as reflecting the position of these organisations. To get in touch with the authors, please write to Tomaso Ferrando at [email protected]. To get in touch with the commissioning organizations, please write to Peter Möhringer at [email protected] Electronic copy available at: https://ssrn.com/abstract=3895640 2 Outline Summary of content and recommendations ........................................................................................