• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Fairtrade and the Market for Coffee beans

Extracts from this document...

Introduction

´╗┐Currently, the price of coffee in the market is very high, but farmers receive less money than what they do. Furthermore, when world coffee prices rise, the price that customers pay in the shops usually goes up too. Yet, when world coffee prices fall, the price in the shops doesn't come down. According to www.newint.org, coffee is a multi-million dollar industry, but the profits don't go to the farmers who actually work so hard to grow the coffee beans, and carry all the risks of failing crops or falling prices. Most of the profits go to the shippers, roasters and retailers. ...read more.

Middle

That is the reason why farmers don?t have good price. In order to get price stability, Fair Trade has emerged to help farmers with their products. According to www.fairtrade.net, Fair Trade coffee producers are small family farms organized in cooperatives or associations which the farmers own and govern democratically. So, after joining Fair Trade, the price of coffee beans will be stable when farmers have harvested it. To sum up, farmers are not only more money but also depend on price. However, there are lower quality coffee beans which are sold at a price equal to the price of good quality coffee through fair trade. ...read more.

Conclusion

To sum up, farmers should not receive more money with their lower products. Besides, to be able to earn more money, while the price of coffee beans in the market isn?t high, farmers need to have more products which sell to raise their income. That reason why the government should support about the capital and lower interest rates those farmers can produce more productions. In addition, the government should invest for research new varieties with higher yields. For instance, the government will lend to farmers to buy materials, after the harvest, farmers would pay back for the government. All in all, if there are more yields and productions, farmers would earn more money without lower price. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. Economics Extended Essay - To what extent has the market for paintings in South ...

    Thus the price fell because of the massively reduced demand from the speculators. It was also observed that because of the drop in prices, the demand from collectors was not as much as was expected. In fact the drop in demand from collectors for contemporary artists was 30%.

  2. Fair Trade

    world, being one of only two regions on the planet to display the wild orangutan. * Gunung Mulu National Park; is a UNESCO World Heritage Site located in Sarawak on the island of Borneo that encompasses incredible cave systems that include the world's largest cave chamber, and is also home to the Sarawak's second highest mountain peak.

  1. Markets and Price Determination

    A price rise (i) An increase in demand * An increase in demand causes the demand curve to shift right. * At the old equilibrium price p, there is now disequilibrium with a shortage of goods occurring. * Shortage causes the price to increase to a new equilibrium point at a higher price of p1 with a higher level of sales q1.

  2. Economics Commentary on "Price of coffee heats up".

    "The commodities market is just like a stock in the stock market, and as investors go in and purchase more of that stock, the price subsequently will rise," said Salzer. The rise in coffee costs will have an impact on the way we all dine, too.

  1. Equal rights for women in labour market in Lithuania

    interest in equal rights began to rise and later the first Law on Equal Opportunities for Women and Men in Eastern and Central European countries was adopted in Lithuania on December 1, 1998 (came into force on March 1, 1999).

  2. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    This legislation suggested the implementation of protectionist, or mercantilist foreign trade policies. The Smoot-Hawley act was put in place to cut off cheap imports in order to protect our agriculture. The law quickly evolved from agriculture into a multi-industry tariff.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work