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Fair Trade- chocolate

Fair Trade- chocolate. Some things to think about What is meant by the term Fair Trade ? How does Fair Trade benefit farmers? What are the disadvantages to Fair Trade ?. Fair Trade - chocolate.

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Fair Trade- chocolate

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  1. Fair Trade- chocolate Some things to think about What is meant by the term Fair Trade? How does Fair Trade benefit farmers? What are the disadvantages to Fair Trade?

  2. Fair Trade - chocolate The FAIRTRADE Mark is the only independent consumer guarantee of a fair deal for producers in the developing world.

  3. Fair Trade - chocolate Fair Trade is where producers are paid a price for their product that covers the cost of production- despite changes in the price at market. Fair Trade products are often more expensive because an additional 20% is charged to consumers, called a social premium, this is invested in the local communities producing the products.

  4. How do LEDC producers benefit... • Farmers receive a fair and stable price for their products. • Sell direct to the global buyers, cuts out local markets, maximising profits. • Partial pre-payment allows more effective long-term financial planning. • Producers have the opportunity to improve their lives through a social premium. • Through co-operatives producers have greater collective bargaining with purchasers and supplies. • Helps diversify into new markets and products, from ones where there is overproduction, via cheap credit. • Help and advice with farming practices, thereby maximising yields.

  5. How do MEDCs benefit... • Consumers know they are purchasing a product which is ethical, no child labour, organic, fair price, from co-operatives that are democratically run. • Consumers can directly trace their purchase. • Consumers can have a direct influence on the quality of life of LEDC producers through the goods they purchase. • LEDC producers have more income to purchase MEDC processed goods (?).

  6. Potential Drawbacks.... • Niche market, therefore has a limited impact. • It continues to support areas where there is overproduction. • Critics suggest it encourages further overproduction by non-fair trade producers, therefore lowering prices further. • It doesn’t encourage the development of secondary processing, which would generate higher prices. • Market share drops during economic difficulties. • It doesn’t solve the unfair trading practices which limit the development of LEDCs.

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