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The squeezing of prices (which are paid on average 45-60 days after delivery brown, 2005 10) and the increased pressures of tightly governed product standards and stringent criteria for make it impossible for many small-scale producers to compete on the market (reardon et al. Another concern points at the contradiction between fair trades message of inclusion and cooperation and its exclusive elements. Some producer groups decide to return most of the extra income to their members, but many decide democratically to retain part of the extra income and use it communally for health, education, community projects, debt repayment, infrastructure, organic conversion and technical training (nicholls & opal, 2005, table 9.
To campaign for changes in the rules and practice of conventional international trade. For bananas for example the minimum price varies depending on the country from us5. The market share of fair trade products, on average only amounting to below 3 percent is partly substantial.
Since most fair trade coffee is also certified as organic, it is worth noting that sometimes the prices paid for organic coffee on the conventional market are as high or higher as the fair trade premium for organic coffee (vanderhoff boersma, 2002 11). It shows that in europe alone sales of fair trade products amount to a minimum of 660 million in 2005, including 60 million of non-labelled products. The success of fair trade is reiterated time over time by a variety of personalities and institutions, ranging from advocates of fair trade in the north and producers in the south to such prominent promoters of trade liberalization as the g 8 and the european commission.
According to the fao industry sources report that farm-gate prices in ecuador decreased below the official minimum price of us3 per box, and in some cases, fell to less than us1 per box. Review of international political economy 11 (2) 387-423. Fair trade as a development project methodological considerations development in practice 15 (2) 134-150.
For fair trade, the key stakeholders are the producers, the producer group, the ato, and the consumer and the partnership between these stakeholders is based on a combination of market and ethical elements. Whenever those institutions that currently determine how the markets function mainly the world trade organization and its sisters world bank and international monetary fund there are powerful attempts by ngos and social movements to protest and lobby for market and trading rules that are fairer to the most disadvantaged producers. While this is an important critique for international trade with organic products and might apply to first party certifications of some tncs like starbucks it does not apply to fair trade.
It is important to understand the reasons why we need fair trade in the first place. And this market-led commercial success story, so the authors conclusion along the same lines, works within a capitalist system, rather than abandoning the liberal trade model entirely (p. Fair trade coffee market is growing at astounding rates, since 1998 increasing at an average rate of nearly 90 percent per year. Fair trade farmers get is still very low, only slightly higher then conventional prices and sometimes lower then the monetary production costs (us0. Fair trade claims to be an effective way of improving the living standard of producers in the global south, and consumers buy fair trade products in the belief that their purchase is having this developmental effect.
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Market Research References Essays
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Market Research References Essays
There are however also positive examples in a producer organization in india in the increased participation of females in the production process had broader impacts like increase in self-confidence, economic independence, better access to health, and participation in decision-making in the family, community, and local council (redfern & snedker, 2002 39 see also paul, 2005 148). In order to provide a sense of the scope of fair trade it is useful to look at some facts and figures that describe the success story of fair trade world wide sales of labelled fair trade products are estimated at 1.
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The positive sides of selling fair trade products through mainstream channels and commercial supermarkets such as starbucks in the usa or tesco in the uk are fairly uncontroversial immense increases in the volume of fair trade products, which thus benefit more producers, an increase in the availability and range of products and opening up the message of fair trade to a much wider audience then through alternative trade (low & davenport, 2005a 150). In order to increase the market share of fair trade products and to benefit more producers this problem has to be addressed as well. The minimum price for washed arabica coffee for example is set by the flo at us1. It is important to note the mutually supportive effects of fair trade and cooperatives. Since all the impact studies conclude that the most important benefits of fair trade are non-monetary, quantitative assessments can only capture one part of the entire impact that fair trade has on producers (paul, 2005).
While some studies suggest that a reasonable percentage of the extra price for fair trade actually reaches producers, other reports seem to imply that sometimes fair trade is a pretty inefficient way to transfer money to producers in the south. Exploring sustainable consumption environmental policy and the social sciences, m. There has been no systematic research on how participation in fair trade brings about socio-cultural changes. Fairtrade coffee divides companys critics the guardian, october 7, 2005. A brief history of the fair trade movement.
The moderate view of fair trade as perfect neoliberalism argues that the aim of fair trade is to create trading conditions that are beneficial rather than exploitative to the most disadvantaged producers in the global south. Alleviation through participation in fair trade coffee networks the case of union majomut, chiapas, mexico. Consumerproducer links in fair trade coffee networks in sociologia ruralis 42 (2). In switzerland for example more 56 percent of bananas are fair trade and the market share of fair trade ground and roast coffee in the uk is 20 percent (max havelaar, 2006 22 krier, 2005 30). And the section on economic impacts of fair trade will see in how far fair trade influences competing corporations to improve their practices, both through market pressures by conscious consumers and by representing a functioning alternative. Hegemony compared politics and society 31 (2) 325-355. We are very strict about our custom writings and we keep it completely custom by all means necessary, none of our previous custom papers are used to construct new orders. Taylor (2002) reports in his summary of seven case studies that it was easier for producers to understand the impacts of organic production since it was more related to their farming activity and they got a higher price for improved quality. In particular the incorporation of the three fictitious commodities money, labour and landnature into the market and thus the total disembedding of the market from society unleashed destructive tendencies, which in turn lead to a variety of counter movements. Opportunities annual report 2004-2005 of the fair trade labelling organizations interntaional.Online custom essays, term papers, research papers, reports, reviews and homework assignments. Professional custom writing service offers high quality and absolutely plagiarism free academic papers.
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To change this situation, in which consumers pay very high prices with the intention of helping producers, but end up mostly increasing the margin of the retailer, it would be interesting to investigate the possibility of establishing a further criterion for fair trade certification, ruling that the margins of retailers cannot be higher for fair trade products than for conventional products. How should one asses that at the g in gleneagles leaders of those economically dominant countries that are continually held responsible for global trade injustices (often by actors and organizations in the fair trade movement) formally acknowledged the growing success of global fair trade and said in their final statement that they welcome the growing market for fair trade goods and their positive effect in supporting livelihoods and increasing public awareness of the positive role of trade in development? (fair trade advocacy newsletter, 2005 4) Buy now Market Research References Essays
This gap in understanding fair trade is, according to several studies, a new development that is commonly attributed to the increased activity of big national labelling organizations and large retailers that see fair trade more as business than the alternative trading organizations. Fair trade label, has established its own self monitored first party label c. In this paper i will try to asses if fair trade really works for all and even more importantly how it works for the different participants of fair trade, mainly consumers and producers and what the wider effects of fair trade are. In operational terms fair trade is characterized by several key practices that are practiced by the labelling organizations as well as by the alternative trading organizations that do not participate in certification (nichols & opal, 2005 6-7) agreed minimum prices, usually above or independent of world market prices, that allow for a living wage for producers an emphasis on development and technical support through the payment of a social premium direct purchasing from producers to shorten the global supply chains and reduce the margins of middle men transparent and long-term partnerships provision of credit when requested and pre-financing of up to 60 per cent of the total purchase value producers are democratically organized, often in a cooperative sustainable and increasingly organic production is practiced there are no labour abuses and unionization must me allowed Market Research References Essays Buy now
Trade and ethical trade are there moves towards convergence? Sustainable development 13 190198. The example quoted was so true to life. Fair trade is however not only a practical model of alternative trading practices but a variety of companies in the fair trade movement embody also a model for alternative business practices. For every order for a custom paper writing received, we assign an individual custom paper writer for the writing task according to their field of study. Fair trade organisations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade (fine, 2001) Buy Market Research References Essays at a discount
As agreed by fine in december 2001, -. Often these norms will be environmental in nature. These growth rates are projected to continue (nicholls & opal, 2005 190). A third of consumers are seriously concerned with ethical issues when shopping and a quarter have investigated a companys social responsibility at least once. Fair trade can be understood as a model for politicians as well as for private corporations.
As such it is a site of contestation, conflict and negotiation between different actors that brings about multiple and partly contradictory effects on different levels. Fair trade shows in practice that social and ecological exploitation are not natural and that corporations can take responsibility, thus proving the standard apologetic reactions of corporations wrong Buy Online Market Research References Essays
This line of argument, seeing certifications as a place of conflict and power rather than cooperation, criticizes the broad trend towards the establishment of semi-public spaces through ngo-third party certification. Instead of competition as the main driver of the market, fair trade introduces an interesting type of contract economy into the market, in which the price is negotiated between consumers, producers and salesmen and their contradictory interests are resolved in cooperation. Central america, mexico, africa and asia (and at us1. The wages at a fair trade banana plantation in ghana, however, were only insignificantly higher than the wages of casual labour in the region (dankers, 2003 57, 59) Buy Market Research References Essays Online at a discount
The growth of fair trade into the mainstream bears immense possibilities but at the same time it creates some new dangers, mainly the undermining of the message of fair trade, the fairwashing of socially and environmentally destructive corporations and increasing dependency of the labelling organizations on large retailers. Revisionist or inclusive neoliberalism, while using a slightly different, more inclusive and empowering discourse, shares with orthodox neoliberalism the preference of the market over the state, has enabled processes of immense social and environmental destruction and is in similar ways interpreted as yet another discourse of domination and control (porter & craig, 2004 mcmichael, 2004) Market Research References Essays For Sale
At the end of 2005 there were 510 producer organizations from more than 50 countries that represent over one million producers and together with their families over 5 million people are integrated into the fair trade system and profit from it (max havelaar, 2006 28). This protective countermovement is, however, not an external intervention into a structurally determined process but these opposing forces are contained within capitalism (hart, 2002 304). The main dividing line centres around the question if fair trade is an attempt to bring neoclassical economic theory closer to reality (nichols & opal 2005 19), or if fair trade is a practical critique and departure from free trade theory and practice that opens up an alternative way of trading For Sale Market Research References Essays
This type of argument often refers to socio-cultural changes in terms of the consciousness of market participants. And even the most studies point at several advantages of fair trade. Philip booth (2005) from the london based institute of economic affairs argues that by paying a minimum price fair trade is disturbing the automatic market mechanisms of adam smiths invisible hand. Peter mandelson, eu commissioner for trade, said in 2005, after having emphasized the success of the fair trade movement fair trade has shown that those working in difficult conditions in commodity-dependent and poor developing countries can aspire to a better life for themselves and their families mandelson (2005) Sale Market Research References Essays
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