Coffee is one of the many products that are exported and imported from and to many locations around the globe. Hence, the marketing strategy came up with the idea of ‘Fair Trade’ wherein the coffee growers will be provided with the best price based on their production and labor standards. The main aim here was to make sure that the coffee growers are paid with the right amount for their involvement in the yield.
Colombia Coffee is one of such buyers of coffee beans from many coffee growers from around the globe. They work beyond the idea of fair trade as they pay the best amount for farmers and the roasters of the beans, based on the quality of the beans that are supplied from every source to them. You can visit their official web link colombiancoffee.us to know more.
Why fair trade is considered a gimmick
Here are some of the reasons and facts that will explain why to boycott the idea of fair trade.
- Growers will not get the money that they are owned by the purchasers
Studies have revealed that the FLO, or also known as Fairtrade Labeling Organization has set the amount $1.50 for each pound of coffee that they purchase from the farmers. However, this is the frontal amount that is set by the coffee purchasers, and they are not paying what they have promised to pay, to coffee growers.
- Farmers are kept in dark about the way the overall charges are calculated
A farmer is not aware of the places that their products will reach, once their products leave the storage area. They do not know about the financial and sales projections of their products, the costs that rise when their products reach every market, and so on. Hence, the farmers believe that the fair trade amount that is offered to them is the best price, and do not know that their products cost more than what money they have offered.
- Consumer charges are quite higher than the fair trade amount
The consumers of the coffee beans are charged $9 to $10 per pound, and the farmers are paid $1.40 per pound of coffee that they sell. When you look at the charges, you will notice that the growers are cheated with more than 700% of the actual cost of their product.
- Farmers fail to enquire about the charges for their products
The coffee growers focus mainly on their annual yield, and hence do not find it necessary that they enquire about the price for their coffee beans in the market today. They believe that the amount that they are charged is the best amount that they can get for their annual yield.
To work with the FLA, the interested person must pay a sum as the licensing fee. For every pound that is sold in fair trade retail, they are required to pay a 10 cents fee. Studies have revealed the fact that the annual budget of FLO gets almost 70% of the amount from the fees that they get from their growers.
To conclude, the idea of fair trade is a type of scam that the middlemen have come up with to make money from both the consumers and farmers.