Equal exchange trading fairly and making a profit

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Equal exchange trading fairly and making a profit

System[ edit ] There are a large number of fair trade and ethical marketing organizations employing different marketing strategies.

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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.

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.

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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.

Equal exchange trading fairly and making a profit

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.

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At some point, all producer-groups re-invest their social premium back into their farms and businesses. They buy capital, like trucks and machinery, and education for their members, like organic farming education.

Thirty-eight percent of producer-groups spend the social premium in its entirety on themselves, but the rest invest in public goods, like paying for teachers' salaries, providing a community health care clinic, and improving infrastructure, such as bringing in electricity and bettering roads.

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In terms of education, the social premium can be used to build and furnish schools too. These federations coordinate, promote, and facilitate the work of fair trade organizations. The following are some of the largest: The FLO International Fairtrade Internationalcreated inis an association of three producer networks and twenty national labeling initiatives that develop Fairtrade standards, license buyers, label usage and market the Fair trade Certification Mark in consuming countries.

The Fairtrade International labeling system is the largest and most widely recognized standard setting and certification body for labeled Fair trade.

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Formerly named Fairtrade Labelling Organizations International, it changed its name to Fairtrade International inwhen its producer certification and standard setting activities were separated into two separate, but connected entities.At the very center of Mustachianism Itself, lies the issue of What to Do With Your Time.

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Contact us at buycasesolutions (AT) gmail (dot) com. Examples of such organisations are Ten Thousand Villages, Greenheart Shop, Equal Exchange and SERRV International in the US and Equal Exchange Trading, Traidcraft, Oxfam Trading, Twin Trading and Alter Eco in Europe as well as Siem Fair Trade Fashion in Australia.

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Since these exchanges have never been made, no one is certain of their relative values, and therein lies the opportunity for profit-making by the canny entrepreneur.

Capitalism More than simply a system of exchange, but has become one defining the system of economic production as well. Early September marks the beginning of the season for Equal Exchange avocados. While avocados are grown year-round by our small farmer partners in Mexico, it is during the early fall that the harvest of this creamy and delicious tropical fruit reaches a sufficient volume for Equal Exchange to begin importing and selling to our customers on a weekly basis.

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