Organizations International Essay Example
Organizations International Essay Example

Organizations International Essay Example

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  • Pages: 5 (1127 words)
  • Published: October 2, 2018
  • Type: Research Paper
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Until a short time ago, it was nearly unfeasible for typical grocery store patrons in New Zealand to endorse fair trade practices that provide equitable remuneration to farmers in underdeveloped regions.

Before May 2005, those interested in purchasing ethically sourced products had no choice but to visit specialty stores, while mainstream supermarkets did not stock such products. This changed when Scarborough Fair, the first fair trade brand in New Zealand, was launched after six months of planning. The brand, led by fair trade activist Sarah Scarborough and her business partner Lighthouse Ventures, who have a team of renowned retail and marketing experts such as ex-Woolworths CEO Andrew Davidson and ex-Saatchi CEO Mike Hutcheson, launched its fair trade tea and coffee products. Currently, the products are stocked in 1600 supermarkets across New Zealand an

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d Australia and sales are off to a great start, according to Hutcheson.

We have managed to exceed sales expectations despite minimal advertising and promotion. The aim is to secure a 5% market share for coffee and tea in Australasia, and the success so far points towards sustained growth. This is especially true when taking into account the relative infancy of fair trade in this region compared to other areas. Brown (1991, 2-4) notes that in the UK, where Fairtrade has been established for over 15 years by the Fairtrade Foundation, there are now over 1500 certified products available.

It's worth noting that in 2003, there were only 150 Fairtrade products available in Britain. However, the industry has recently seen a boom and is now valued at ?140 million with annual sales growth of approximately 12%. Fairtrade now accounts for 15% of all coffee sold in

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the UK, and some supermarkets exclusively stock Fairtrade products in certain categories such as bananas or chocolate. John Corbett, Editor of the Grocer's Review, observes that ethical purchasing is gaining steady ground in New Zealand, and more mainstream companies are moving into Fairtrade. He believes that Fairtrade will continue to expand alongside the concept of sustainability. Consumers desire product choices which align with their values and promote a brighter future for the growers. Our extensive evaluation of international trends confirms that heightened awareness will drive demand. According to Corbett, ethical consumerism currently focuses attention on corporate ethics, social responsibility, and sustainability.

The consumer mindset is evolving as millions of Americans continue to consume coffee daily, yet without fully understanding the production process behind their favorite beverage. Coffee farmers in distant lands work tirelessly before the beans even reach American soil to provide a beloved brew to citizens of affluent nations. Despite coffee's increasing popularity, one would assume that those producing it would have a decent quality of life.

Crocker (1998, 1-3) urges readers to reconsider the impact of unbalanced trade. Farmers in countries like Honduras and Guatemala struggle to maintain crops and meet basic living expenses due to low prices received for coffee, sugarcane, cocoa beans, and tea leaves. While middlemen and corporations thrive, peasant farmers are forced to survive on as little as a dollar per day and maintain their families and land. The issue stems from corrupt governments, poorly educated farmers, and cheap labor, including forced child labor in West Africa, forming a vicious cycle of poverty for growers.

Fair trade is a movement that offers hope for impoverished farmers. Discovering inexpensive bananas in

Montana may indicate that these farmers were not paid fairly. Fair trade seeks to provide producers in underdeveloped countries with more equitable prices for their goods. Instead of being viewed as a form of charity, fair trade is a market-based solution to rectify trade imbalances that contribute to poverty and allow for more equal distribution between developed and underdeveloped nations. By implementing fair trade practices, farmers can rely on a fixed price for their product that surpasses the standard rate paid in a non-fair-trade system. (Danaher 2000, 10-12)

Fair trade empowers communities to construct homes, hospitals, and schools while simultaneously reducing domestic violence. It enables farmers to educate their children rather than sending them to work in the fields, decreases reliance on aid, fosters equitable labor practices, and enhances working conditions. Thanks to the intolerance for forced labor, harmful agrochemicals, and substandard living conditions, fair trade farms boast some of the world's best working conditions. The advantages of this system are widespread. (Grimes 2000, 75-76) Typically, farmers who participate in fair trade operate as part of small-scale democratic cooperatives, which leverages their bargaining power.

This statement was made by a member of Equal Exchange which specializes in selling fair trade coffee, chocolate, sugar, and tea. The cooperative systems empower farmers to work directly with buyers, bypassing the often-corrupt intermediaries. Small-scale farmers typically only have control over the first link in the supply chain, which perpetuates their poverty. TransFair USA reports that the fair trade movement funneled over $26 million extra dollars to participating coffee farmers worldwide in 2004. Fair trade can also lead to better quality coffee as farmers can use the additional income to

improve their technology.

According to Nicholls (2005, 34-35), better equipment and training can lead to improved flavor and consistency in the final product. Furthermore, fair trade's strict environmental stipulations have also contributed to better quality. All fair trade farms adhere to tough environmental standards that limit pesticide use and protect surrounding ecosystems. Additionally, 85 percent of all fair-trade-certified coffee is certified organic.

By paying farmers higher prices, they are able to invest in eco-friendly farming methods and transition to organic practices. Additionally, fair trade has helped to strengthen the relationship between consumers and food growers. Through this movement, people have become more aware of the challenges faced by farmers and have been reminded of the individuals behind their everyday food items, such as chocolate bars and cups of coffee.

According to Roddick (2000), farmers in Latin America, Africa and Asia have earned over $67 million in additional revenue over the past few years due to TransFair USA's certification of more than 100 million pounds of coffee, cocoa, tea, rice, sugar and fruits. Rice (1999) explains that companies participating in fair trade can be identified by the fair trade logo on their products, issued by TransFair USA, which ensures adherence to monitoring criteria and standards set by Fair Trade Labelling Organizations International (FLO) based in Germany. The main goals of TransFair USA are to connect businesses with producers, as well as audit and verify the supply chain to ensure farmers receive fair compensation. These strict verification requirements increase consumer confidence that they are paying a premium for ethical products.

Broad, Robin's book "Global Backlash: Citizens Initiatives for a Just World Economy" (2002) and Michael B. Brown's work (pp. 10-12)

are references on the topic.

The book "Fair Trade: Reform and Realities in the International Trading System" was published in London by Zed Books in 1993, and its pages 5-6 contain valuable information on the topic.

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