Introduction and Background:
Many Canadians start their day with a cup of coffee, taking for granted how the coffee bean was grown, harvested, packaged and shipped to their coffee provider to then roast and prepare for us to purchase for as little as $1.50 per cup. Today coffee is the most important product in the Fair Trade market affecting over five hundred thousand producers and workers. The Fair Trade label can be traced back to 1988 originating from a church based Non Governmental Organization (NGO) from the Netherlands that began an initiative to ensure coffee growers and pickers would receive sufficient wages for their work. The NGO created the fair trade label called Max Havelaar. Following this, similar organizations followed
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Environmental impact:
Fair trade has been shown to have a positive impact on the environment. In fair trade production, harmful chemicals are prohibited. There is an environmental criteria to ensure all fair trade-certified occupations work towards good environmental practices (Raynolds & Bennett 2015). By practicing safe farming, the health and safety is guaranteed for farm families, workers and the community. Fair trade farmers must participate in a yearly examination to ensure they minimizing their use of agrochemicals and provide a summary on their impacts to the environment. In fair trade production, genetically modified crops are prohibited (Dragusanu et al. 2014). Fair trade has successfully been able to promote more environmentally friendly farming among their certified farmers. This practice supports long term environmental and social sustainability.
Bacon et al. (2008) found that “68 percent of Fair Trade farmers had implemented ecological water purification systems, compared to 40 percent for conventional farmers. Moreover, 43 percent of Fair Trade farmers had implemented soil and water conservation practices, while only 10 percent of conventional farmers had done so.”(p. 229). Fair trade aims to tackle climate change and reduce as many harmful chemicals as possible. This is made possible by providing farmers with access to organic training that opens the doors to premium markets. This ultimately provides farmers incentives to
Recently people have become more and more conscious of what they put into their bodies and where it comes from. An unprecedented amount of information is now readily available to most Americans with the advent of the Internet. This has resulted in a great increase in transparency of the many aspects of imported products. Consequently, programs have been established to help ensure that these products are produced in more ethical and humane ways. To many Americans, the Fair Trade labeled bags of coffee they purchase that give them the energy they need to go about their day in addition to being a socially conscious decision but to many it is a means for survival and an escape from a cycle of debt that traps many similar non-Fair Trade growers generation after generation
Times have changed, and so has the family, the community and our environment. And these changes have impacted our lives and earth immeasurably. This is where the factor greed comes in to play, the need for more. This need for more called for extensive measures, measures like fertilizers, pesticides and equipment to work the ground and harvest the crops became necessity. Agriculture became a booming business that did not and still does not promote the well-being of the employee nor the individual let alone the family unit and community. Since 1950 an average farm size has doubled, but the number of laborers decreased substantially and the number of small local farmers has been cut in half. Farmers have been forced to become more efficient and there 's been a reliance on greater chemicals and technology, which has become very extensive and expensive. Sadly, what has been short term expansion has become a long-term threat (Trautmann, 2012). This greed driven increase has led to subtle damaging ramifications that most people are ignorant to. Their needs are being met as quality is being forsaken. Our environment is being squandered. Selfishness abounds.
The growth of the coffee industry is expected to keep growing even become larger in the near future. Without new innovation the industry would never grow. There have been some tiny and some large changes in the coffee world that in toll add up to a new experience that many cannot refuse to be a part of. One of the goals of many coffee shops is to make the customer comfortable and happy. To do this many Starbucks’ around the world have installed new wireless charging stations in there stores so that when costumers are there they can easily charge their phones without worrying about bringing a charger of their own. This new addition to the stores is just one part of getting ready for the future. Phones and technology in general is a huge part of everyday life and this has to be incorporated into many places people shop. By adding technology to stores it makes the entire buying process more streamline. Starbucks has also integrated the use of phones in to the payment system at every store. Customers use their own phone that has a barcode to pay for their goods. With just the touch of a button the entire buying process can be completed. This makes it easy because you do not need to worry about remembering your wallet all you need is your phone and many people already have it with them. Included in the app is also a rewards system that provides user with rewards bases on how often they go and even recommendations for what a customer may enjoy next time. One of the newest changes
The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.
In Columbia, there are numerous industries. Most of them are natural ones such a coffee growing or sugar cane. Columbia is developing new forms of sustainable growing practices for their primary crops, as it not only benefits the environment, but also the profits of the major agricultural companies. These are beneficial for the environment because instead of tearing down beautiful forests to put up a building, the sustainable farming methods are helping to preserve the forests while increasing the quantity of crops of coffee and sugar cane. While organizations are working to improve sustainability, an already existing issue exists, a lack of workers. Although Columbia may be facing challenges such as a lack of workers,
As counterintuitive as it sounds, Londoners rather buy lamb from New Zealand as from the United Kingdom because raising lamb in the United Kingdom emits a large amount of carbon, and it’s more environmentally friendly to purchase the lamb from an area that is further away, but contains less carbon emission (Source C). When comparing the transportation energy to other factors of the farmers’ market, it is obvious that the amount of energy used for transportation is insignificant compared to the damage the farmers market casts on the environment. Many farmers will use fertilizers to give nutrients to the plants so that it will maximize its growth, but do not consider the long-term effects it has on the
The documentary Black Gold, is about the world coffee market and an Ethiopian fair trade cooperative. Ethiopia being the birthplace of coffee is the largest producer of coffee in the world, producing some of the highest quality of coffee beans in the world, like Harar, Yuban and Sidamo types of coffee. The significant problems pointed out in this documentary show what is wrong in the global trading system. Mainly, while most of us continue have our lattes and specialty coffees, the amount paid to the Ethiopian coffee farmers is so low that a lot of them have been forced to chop down some of their coffee fields and rely on other crops to help them survive. The Ethiopian people are malnourished; they have no clean water, no healthcare, and no schools for their families. As quoted in the film, “They are living hand to mouth”.
It is a globalised world. Being a part of this progressive society, growth is a key indicator of success. Global Trade is one such benchmark that differentiate nations and economies. Every nation has some policies to promote the strengths of their trade globally. Likewise, Colombia has been known to be the third-largest producer of coffee after Brazil and Vietnam (in terms of volumes produced) from a long-time. Coffee is the world’s most traded commodity and most of it is produced by the small-scale farmers. Hence, globalisation has had a great impact on its production as well as trade. Therefore, Colombia’s strength lies in the production of coffee but also promoting their strengths and honing them globally to their benefit. Coffee is not just a cash crop for the Colombians but it’s a way of life for them. The farmers associated with the credulous society of small scale coffee growers called National Federation of Coffee Growers of Colombia (NFC) (1) was founded in the year 1927.
It is known that industrial farming allows a systematic production of food to feed millions of people. Yet the environmental impacts due to “industrial farming”
This is a system aimed at encouraging farmers not to give up on coffee planting by providing a better and stable life for small scale farmers who were also initially dependent on the income from coffee plantations (Mendez et al., 241; Bacon, Mendez, Gomez, Stuart, and Flores 263). In as much as globalization is a significant and inevitable move towards development, it has caused an increase in the gap between the farmer and the consumer in relation to the consumption of coffee. The small scale farmers in Central America are now left to compete with other coffee producers from regions such as East Africa and this leads to low prices of the product (Sick 194). This has been a source of discouragement for small scale farmers. In as much as the government has taken initiatives such as the introduction of Fair Trade, it seems like the statistics of this system being successful are still at an all time
Fair Trade Coffee Fair Trade promotes socially and environmentally sustainable techniques and long-term relationships between producers, traders and consumers The world coffee industry is in crisis. A flood of cheap, lower-quality coffee beans have pushed world market prices down to a 30-year low. Many now earn less for their crop than it cost them to grow. Many coffee farmers around the world receive market payments that are lower than the costs of production, forcing them into a cycle of poverty and debtWithout urgent action, 25 million coffee growers' face ruin.
Did you know that coffee is the second most traded commodity in the world? Second to oil, the coffee industry employs millions of people to trade, process, grow, and produce coffee (BBC News). In this paper I will address if the coffee industry is fair to its producers and consumers. I will also discuss different fiscal organizations that directly affect the coffee industry’s prices like the International Coffee Organization, World Trade Organization, Free Trade, and Fair Trade. I will also touch upon of the coffee industry influences farmers, middleman, and consumers.
Following Meskela’s journey, the film demonstrates the power held by multinational corporations (MNCs) in setting the price of coffee. He wants a solution, but what happens with commodity traders, the international coffee exchanges, and the World Trade Organization (WTO), he is faced with challenges in finding that. Meskela worked diligently to eliminate the players who tend to come in between the buyers and the sellers. Instead, he went directly to the buyers to ask for a fair price. The fair-trade movement embraced his cause as they work to bring supposedly fairly-traded commodities to grocery stores in America.
Agriculture in the United States has changed dramatically over the centuries. Since the 1960’s large commercial farms have been leading in sales. As a direct result of their success we, as a society, have access to affordable food. However, the success of large farms has lead to many negative impacts such as increased usage of resources and decreased diversity in crop fields. This begs the question, what can be done to reduce the negative impacts of large farms. One solution growing in popularity is sustainable agriculture. The idea of sustainable agriculture is to create farms that need little to no outside help from irrigation, pesticides, or fertilizers. Sustainability can be achieved in many way through
When considering the challenges and opportunities posed by EU non market policies, we must look at both the food producer and the manufacturer as both can have positive and negative reactions. Going forward, global warming is now high on the agenda of policy makers. With agriculture a high contributor, it is unsurprising that measures are being introduced that have effect on the producers’ and manufacturers’. The buzz word now associated with the future of the environment and the food industry is “sustainability”. This refers to sustainable growth as the producers (farmers) try to maximise output. Moreover, with world populations set to dramatically increase up to 2050, the EU and the world must find ways to promote food production. Therefore, policies are now becoming more difficult and multifunctional. This is symbolised through the increasing awareness of the environment and it becoming more and more apparent in the Common Agricultural Policy (CAP). “The industry realises the need to protect and, where possible, improve biodiversity. Given that the industry’s raw materials are grown in the natural environment, and the industry purchases and processes 70% of EU agricultural production, it is essential that agricultural practices are sustainable.” FoodDrink Europe. (2011). It is here in the CAP that I have found non-market policies to have impacted both positively and, at times, negatively on the food producers and manufacturers operating in the EU. The