Comments on: Student Reflections on Fair Trade http://www.crsfairtrade.org/2009/01/06/student-reflections-on-fair-trade/ Thu, 12 Aug 2010 02:57:13 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Katy Cantrell http://www.crsfairtrade.org/2009/01/06/student-reflections-on-fair-trade/comment-page-1/#comment-212 Katy Cantrell Wed, 04 Feb 2009 19:13:44 +0000 http://fairtrade.crs-blog.org/?p=484#comment-212 Rishi, thanks for your comment. First, I'd like to say that while Fair Trade and organics overlap quite a bit, my knowledge of all the issues related to organics is somewhat less than my knowledge of Fair Trade. And I would like to say thanks for bringing up one of the key tenants of Fair Trade that I believe make it a relevant market for small-scale farmers, and that's having a minimum guaranteed price. As you may know, that minimum price rises in step with the NYBOT price if the NYBOT price goes above the minimum Fair Trade price, with an additional premium being paid to the Fair Trade cooperative. Additionally, if the Fair Trade coffee is organic, the farmer receives an additional $.20 per pound to help offset the cost to produce organic coffee. That said, the value of organics is open for debate. There's a great and growing demand for organic coffee and produce in the U.S. because we like to know our food, and the farmers and the earth that produce our food, aren't exposed to harmful chemicals. That's a very valid desire by consumers in the U.S. However, the reality of organic farmers overseas oftentimes is that the cost of producing organics is barely covered by the price they receive for their products. Leaving little financial motivation to continue producing organics, while there may continue to be other motivations such as health and environmental concerns. As consumers we need to recognize that the higher cost of organics needs to cover the increased labor and organic inputs farmers need to produce coffee and/or produce organically, coupled with their increased exposure to shocks from pests and disease (especially if they only produce one cash crop), and potentially lower yields from eliminating synthetic fertilizers. As I was listening to the radio the other day, they were speaking about the state of the economy (not so good these days) and how this will affect the foods we choose to eat, mentioning organics specifically. Will the poor economy affect the food we choose consume? Maybe we will think twice. But I think instead of cutting out products we believe are beneficial, we'll want to know for sure that our dollars are doing what we think they're doing. In Fair Trade, things aren't always perfect, but we're always pushing for transparency and a fair deal for producers. I hope organics are on the same spectrum we are. For those organics experts out there, please write in and let us know your thoughts! Rishi, thanks for your comment. First, I’d like to say that while Fair Trade and organics overlap quite a bit, my knowledge of all the issues related to organics is somewhat less than my knowledge of Fair Trade. And I would like to say thanks for bringing up one of the key tenants of Fair Trade that I believe make it a relevant market for small-scale farmers, and that’s having a minimum guaranteed price. As you may know, that minimum price rises in step with the NYBOT price if the NYBOT price goes above the minimum Fair Trade price, with an additional premium being paid to the Fair Trade cooperative. Additionally, if the Fair Trade coffee is organic, the farmer receives an additional $.20 per pound to help offset the cost to produce organic coffee.

That said, the value of organics is open for debate. There’s a great and growing demand for organic coffee and produce in the U.S. because we like to know our food, and the farmers and the earth that produce our food, aren’t exposed to harmful chemicals. That’s a very valid desire by consumers in the U.S. However, the reality of organic farmers overseas oftentimes is that the cost of producing organics is barely covered by the price they receive for their products. Leaving little financial motivation to continue producing organics, while there may continue to be other motivations such as health and environmental concerns. As consumers we need to recognize that the higher cost of organics needs to cover the increased labor and organic inputs farmers need to produce coffee and/or produce organically, coupled with their increased exposure to shocks from pests and disease (especially if they only produce one cash crop), and potentially lower yields from eliminating synthetic fertilizers.

As I was listening to the radio the other day, they were speaking about the state of the economy (not so good these days) and how this will affect the foods we choose to eat, mentioning organics specifically. Will the poor economy affect the food we choose consume? Maybe we will think twice. But I think instead of cutting out products we believe are beneficial, we’ll want to know for sure that our dollars are doing what we think they’re doing. In Fair Trade, things aren’t always perfect, but we’re always pushing for transparency and a fair deal for producers. I hope organics are on the same spectrum we are. For those organics experts out there, please write in and let us know your thoughts!

]]> By: Rishi http://www.crsfairtrade.org/2009/01/06/student-reflections-on-fair-trade/comment-page-1/#comment-211 Rishi Wed, 28 Jan 2009 15:45:47 +0000 http://fairtrade.crs-blog.org/?p=484#comment-211 I am now doing my research on the impact of coffee production on Nepali smallholders in the value chains. I have collected Households data from two clusters: i. e. Organic coffee certified (Gulmi, district of Nepal) and non-organic certification area (Kavre). I have got very interesting results. Especially, certified farmers have low income from coffee sectors and low productivity per unit area as compared to non-certified farmers. Is it true???. I have analyzed the entire possible variable and have to find that certified farmers have low financial access, more marginal land and more shocks due to pests infection. Even those, certified farmers have got some how price premium through cooperative. Nevertheless, I have to reach on my conclusion that, organic certification provides market assess and easy to sell as like passport for international market. But, it directly not to help for smallholders in their livelihood improvement if farmers would not get real price premium for social activities and technical- capacity-empowerment like Fair Trade Coffee certification scheme. I am now doing my research on the impact of coffee production on Nepali smallholders in the value chains. I have collected Households data from two clusters: i. e. Organic coffee certified (Gulmi, district of Nepal) and non-organic certification area (Kavre). I have got very interesting results. Especially, certified farmers have low income from coffee sectors and low productivity per unit area as compared to non-certified farmers. Is it true???. I have analyzed the entire possible variable and have to find that certified farmers have low financial access, more marginal land and more shocks due to pests infection. Even those, certified farmers have got some how price premium through cooperative.

Nevertheless, I have to reach on my conclusion that, organic certification provides market assess and easy to sell as like passport for international market. But, it directly not to help for smallholders in their livelihood improvement if farmers would not get real price premium for social activities and technical- capacity-empowerment like Fair Trade Coffee certification scheme.

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