• 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 Commentary on "Price of coffee heats up".

    changes which affects the demand negatively; "This has led some customers to say they will start drinking less coffee than they used to." When an increase takes place in the cost of factors of production such as coffee beans that means the producers have to options; either supply less and lose costumers or increase the price and also lose customers.

  2. Equal rights for women in labour market in Lithuania

    There were a reduction in vacancies in the state sector, collapse in the finance sector, many companies went to bankruptcy. The year 2002 was a turning point as unemployment rate began to decrease and reached the least value over the years of independence: the number of workers increased in the service sector, industry and constructions.

  1. Fair Trade

    The economy is benefiting immensely from this surge of tourism, as it is bringing job opportunities and cash flow to the country, as well as overall development opportunities. Development Level: Moderate HDI: 0.823 rank 63rd out of 179 countries

  2. Markets and Price Determination

    If the firm is being rational and aiming to maximise its profit, it will only produce and supply the extra products if the price rises to cover these extra costs. A supply schedule = a table showing the quantity of a product supplied at different prices.

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