Difference Between Fair Trade And Cacao Trade

Problems with coffee/cacao trade Do you know the word "Fair Trade"? The current global nation 's structure of trade sometimes expands unfair poverty. Fair trade started as another form of trade to eliminate economic disparities. In this way, today fair trade is believed to be good. However, it also has a downside, for instance the lowest price of fair trade, deal as an industrial association, and overproduction. After this, I will say about these problems and solutions. First, the lowest price of fair trade should be raising higher than the international price. The lowest price of certified products by fair trade obviously be lowest than the international price. In 2010, fair trade foundation said the price of coffee beans and cacao beans

A condition of fair trade 's producers is to form an association, to do democratic activities, to keep to the regulations of International Labor Convention. However, it exists the structure of exploitation in the industrial association, terminal commercial farms can 't get appropriate money. For this reason, they should deal positively to global company regardless the industrial association. For successful example to rescue poor famers, it is known the company "Oramu". Oramu is not authenticated as fair trade. But it gave famers 4 dollars per kilogram. Since they deal to Oram, they received 1.38 dollars or not more than 1 dollar. The price given by Oram is higher than the international price. It provided a safe and healthy work environment to farmers in Cote d 'lvoire. Also, they gave farmers the high-quality seed and lent money free of interest. Accordingly, these things lead to make the high-quality products and to be stabilized supply. In this way, coffee beans or cacao beans famers should transact business with global companies regardless the industrial

In 2001, People positively a campaign of fair trade. Around the same time, wholesale price catastrophically has fallen. It caused by oversupply of coffee beans. From the last 1990 's to 2005, the international price of coffee fall into the bottomless pit. Its principal factor is to be glutted with coffee beans made in Viet Nam or Brazil. Therefore, the market of coffee beans was carried out distribution restraint in1962. This distribution restraint is called International Coffee Agreement, for short ICA. ICA is a kind of International Commodity Agreement, started in 1962. Exactly, it is aims to prevent the collapse of the coffee beans price and assure stability by assigning the export the country that produce coffee beans and artificially confining amount of coffee beans in circulation at the international market. A sharp drop in coffee prices from 1987 to 1991 are caused by the termination of operations. The supply of Viet Nam and drop in coffee prices have a correlation. On the contrary, when the price is raising, it suffers from frost. So, we are probably safe in thinking "the balance of the receipt affects the price". Today farmers produce coffee beans more than ten million bags, compared to the needs of the world. It is efficient to opt out of coffee production, and to make provisions. In conclusion, fair trade has bad sides even though we look on good sides of fair trade. It all depends to stop the campaign