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Fair Trade is a noble movement meant to support coffee growers due to their low share of the final price. However, despite the good intentions, it faces several challenges, most of which are evident at the retail level. Some appropriate Fair Trade to promote their goals, and the market situation was unstable for the time being. The movement itself is not perfect, only partially addressing the issue. This paper will discuss the symptoms and the precursors presented in the case and attempt to offer some recommendations.
As mentioned, Fair Trade aims to help coffee growers, who are mostly based in developing countries, to obtain a bigger share of the final price. Approximately a half of it is distributed to roasters and shippers, leaving only a small percentage to actual producers. The movement attempts to bridge the gap between growers and retails and establish certain standards. While they appear to resolve some issues, it is still unclear how the income is impacted. Moreover, big corporations appropriate Fair Trade to improve the brand image, diluting its meaning, failing to explain the details, and increasing the prices in bad faith in the process. On the other hand, the movement threatens those not participating in it and only partially address the concerns of developing countries. Thus, multiple causes lead to the current state of affairs, which manifests in such symptoms as image laundering and premium pricing.
As a retailer, one can address the problem in several ways. First of all, it is advisable to calculate whether decreasing the coffee price will be beneficial for growers due to an increased customer base in the long run. If the forecast is positive, the initiative is viable; otherwise, the focus should be on maintaining the existing buyers. Then, the Fair Trade production needs more transparency, which can be achieved by providing the necessary information on packages or separate stands. Perhaps, after convincing the consumer of the movement’s importance, they will be more receptive to pricing changes. Most importantly, the retailer should establish a relationship with growers directly and remove other elements from the supply chain, benefiting both parties. While the movement will still have issues, the ones on the wholesale level will be resolved, improving the producers’ financial gains and motivating them to enhance quality and adopt more roles than a grower.
Do you need this or any other assignment done for you from scratch?
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NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.