Does Fair Trade Coffee Eliminate Poverty?

[Shek]

Incorrect, govenrments can do a lot more. They can create level playing feilds in asociated areas like transportation, fuel costs, storage fees etc. By making dependent on volume large producers loose the ability to manipulate the ancillary costs of an operation in order to drive out smaller operations.

So you want to penalize consumers and/or taxpayers to promote inefficiency?

[Versus]

It is not possible to have anything noble or moral, such as fair trade in the Global Market economy. If you apply the fair trade to the poor country that means that all the farmers will devote their fertile land for mono culture production. With the mono culture agriculture in place, you will have hunger and poverty rising, rather than falling. This happens simply because the price that is consider to be fair actually is not fair at all so the whole article is actually based on false assumptions and therefore draws false conclusions. I mean 1.29$ per pound...fair,right? Nope.

[DOR]

I'm getting real confused.
Half the time, it seems that there is a very strong anti-government, or neo-libertarian streak around here, and the other half of the time its all "fair trade" helping poor farmers.

As a charitable program to transfer wealth from rich Western consumers to poor Third World farmers, "fair trade" doesn't stand up all that well to regular aid (which ain't all that great).

But, as a sneaky way to undermine the WTO and other efforts to reduce barriers to the movement of goods around the world, "fair trade" is extremely efficient. In fact, I would give it some credit for the fact that there is a good old 1930s style trade war brewing right now.

[Versus]

I'm getting real confused.
Half the time, it seems that there is a very strong anti-government, or neo-libertarian streak around here, and the other half of the time its all "fair trade" helping poor farmers.

As a charitable program to transfer wealth from rich Western consumers to poor Third World farmers, "fair trade" doesn't stand up all that well to regular aid (which ain't all that great).

But, as a sneaky way to undermine the WTO and other efforts to reduce barriers to the movement of goods around the world, "fair trade" is extremely efficient. In fact, I would give it some credit for the fact that there is a good old 1930s style trade war brewing right now.

Don't be. The so called "green/organic/natural" market is just another segment of the Global Market and therefore it is subjected to the same laws as any other segment of the market. And the law is, in order to maximize profit you need to cut costs. Since the economy is based on growth, it automatically generates artificial markets or places to grow. As it grows, the bias between rich and poor rises and that rift creates a space for the new market. For an example, the rich east coast guy, earns a ton of money on the stock exchange. He is rich. Since he is rich, he feels successful and therefore special. Since he is special he is unique and therefore he cannot mangle with the ordinary crowd. So he doesn't go to the common "marts" where the rest of the plebs go he needs special food. But since food is the same, his need for specialty transforms the market into this "green and organic" market where the food is organic and natural. Than you have the whole hype about green and healthy living, designed to service the special needs of the special rich people. In order to make them feel good, not only that this food needs to be organic it needs to serve some "higher" caouse, like...eliminating poverty. So not only that the rich trader eats good and eats healthy food, he actually feels good while eating since his money goes to combat the poverty. However, this is a lie. It is another hocus pocus conjured in order to maximize profit. The price of raw, fair trade coffee is 1.29 US dollars per pound, the price for that same pound of coffe when it is packed into green cans and bags it costs around 15$ per pound. The ratio is 10 to 1 for the green corporation versus poor farmer and that is how the pooverty rises. Since the poverty rises, the green corporation has the incentive to sell more of its organic coffee to combat poverty while actually it upholds and spreads poverty since the poverty is their main marketing trick.

[xinhui]

DOR

Since I am the one who opened this thread and have family members involved in coffee trade. I would like to chime in.

It is not about government vs private enterprise -- it is about how to get to the market faster with the existing line of credit. The problem is that growers are willing to sell to wholesaler at a lower pricing because they need their ROI for food and other expense that can't wait. Wholesaler also has higher priority in shipping and other logistics. Speaking of economy of scale here -- even the consumer is willing to pay a high at a price, the gain will be lost by a higher management and logistic cost.

For those those poor growers, the political debate means very little.

[astralis]

z,

They can create level playing feilds in asociated areas like transportation, fuel costs, storage fees etc.

best way to do that is internal infrastructure improvements.

[DOR]

Versus,

Since the economy is based on growth, it automatically generates artificial markets or places to grow.

I missed the basis for that theory. Care to clarify?

As it grows, the bias between rich and poor rises and that rift creates a space for the new market.

And, that one. “bias between rich and poor” ?

The price of raw, fair trade coffee is 1.29 US dollars per pound, the price for that same pound of coffe when it is packed into green cans and bags it costs around 15$ per pound. The ratio is 10 to 1 for the green corporation versus poor farmer and that is how the pooverty rises.

And, here. If you’re saying the farmers get no more money, then how do you arrive at the conclusion that “poverty rises” ? Illogical.

z,

best way to do that is internal infrastructure improvements.

Amen.

[Versus]

Versus,


I missed the basis for that theory. Care to clarify?


And, that one. “bias between rich and poor” ?


And, here. If you’re saying the farmers get no more money, then how do you arrive at the conclusion that “poverty rises” ? Illogical.



Amen.

Give me some time to formulate my response.:)

[DOR]

Give me some time to formulate my response.:)

Fair enough. I like people who think before opining.
Take your time.