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System[ edit ] There are a large number of fair trade and ethical marketing organizations employing different marketing strategies. Packers and retailers can charge as much as they want for the coffee.
The coffee has to come from a certified fair trade cooperative, and there is a minimum price when the world market is oversupplied. Additionally, the cooperatives are paid an additional 10c per lb premium by buyers for community development projects.
Some go to meeting the costs of conformity and certification: Some meet other costs. Some is spent on social projects such as building schools, health clinics and baseball pitches. Sometimes there is money left over for the farmers. The cooperatives sometimes pay farmers a higher price than farmers do, sometimes less, but there is no evidence on which is more common.
Some independent brands operate a "virtual company", paying importers, packers and distributors and advertising agencies to handle their brand, for cost reasons. The nature of fair trade makes it a global phenomenon, therefore, there are diverse motives for understanding group formation related to fair trade.
The social transformation caused by the fair trade movement also varies around the world. A study of coffee growers in [Guatemala illustrates the effect of fair trade practices on growers.
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In this study, thirty-four farmers were interviewed. Of those thirty-four growers, twenty-two had an understanding of fair trade based on internationally recognized definitions, for example, describing fair trade in market and economical terms or knowing what the social premium is and how their cooperative has used it.
Three growers explained a deep understanding of fair trade, showing a knowledge of both fair market principles and how fair trade affects them socially.
Nine growers had erroneous or no knowledge of Fair Trade. One is a manager, one is in charge of the wet mill, and one is his group's treasurer. These farmers did not have a pattern in terms of years of education, age, or years of membership in the cooperative; their answers to the questions, "Why did you join?
These farmers cited switching to organic farming, wanting to raise money for social projects, and more training offered as reasons for joining the cooperative, other than receiving a better price for their coffee.
They could, however, identify fair trade based on some of its possible benefits to their community. When asked, overall, farmers cited that fair trade has had a positive effect on their lives and communities. They also wanted consumers to know that fair trade is important for supporting their families and their cooperatives.
Fair trade cooperatives create a space of solidarity and promote an entrepreneurial spirit among growers. When growers feel like they have control over their own lives within the network of their cooperative, it can be very empowering. Operating a profitable business allows growers to think about their future, rather than worrying about how they are going to survive in poverty.
Overall, farmers are satisfied with the current fair trade system, but some farmers, such as the Mazaronquiari group from CAC Pangoa, desire yet a higher price for their products in order to live a higher quality of life. An important factor of the fair trade social premium is that the producers or producer-groups decide where and how it is spent.
These premiums usually go towards socioeconomic development, wherever the producers or producer-groups see fit. Within producer-groups, the decisions about how the social premium will be spent is handled democratically, with transparency and participation. One common way to spend the social premium of fair trade is to privately invest in public goods that infrastructure and the government are lacking in.
These public goods include environment initiatives, public schools, and water projects. At some point, all producer-groups re-invest their social premium back into their farms and businesses.Right on. Unfortunately, everyone making the decisions in congress earns over $k per year they don’t understand that what we are asking our citizens to pay to own shelter is ridiculous, and sucks up valuable capital and discretionary income that could be spend elsewhere.
Right on. Unfortunately, everyone making the decisions in congress earns over $k per year they don’t understand that what we are asking our citizens to pay to own shelter is ridiculous, and sucks up valuable capital and discretionary income that could be spend elsewhere.
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