Patrick Say: March 2017
Myth 4: "Fairtrade locks farmers into a fixed price" You may have read about the 'Fairtrade Minimum Price', this is indeed a real thing. But it's a safety net, calculated to cover farmers costs of production, and only coming into play in a worst case scenario. It is not something that locks farmers into a fixed price.
Let's use the example of Maria -- a farmer from a Fairtrade coffee cooperative in Colombia — to explain. In simple terms, if the market price of coffee falls below the Minimum Price set in the Fairtrade Standards, then under Fairtrade, Maria's cooperative would receive this guaranteed Fairtrade Minimum Price.
This safety net means Maria and other farmers in her coop can cover their production costs which helps them to predict their income and budget for the future. However -- and this is really important -- if the market price of coffee is above the Minimum Price, then the buyer must pay the higher price. And of course they can also negotiate higher prices on the basis of quality and other factors. This is something that people often don't pick up on, assuming that under Fairtrade farmers receive a fixed, flat rate that can never change, even if the market price of the crop they're growing is high.
It's also worth remembering that in addition to the receiving Minimum Price or market price, Fairtrade producers receive a bonus-type payment called the 'Fairtrade Premium'. This is an extra sum of money that they decide democratically how best to spend. Some might spend it on improved training and farming techniques, others on building schools and medical clinics. Fairtrade doesn't dictate what it's spent on, it's entirely up to the producers, but in the interests of transparency Premium spending is audited.
popular recent storiesAlso in the news
On July 7th; the same day that England triumphed over Sweden in the World Cup, the Circuit Youth Event was held! It was called 'Be the best version of you'.We kicked off the evening with prayer and worship led by Casey Leigh and the band from Aylesbury Vale Community Church. The band helped to create a wonderful atmosphere throughout the evening, giving a brief tutorial on how to play...
Our Action for Children weekend raised £660 from Saturday's stall in Market Square, Sunday's cake and plant stall in the hall and the retiring collection plus gift aid.During Action for Children's Sunday service led by our minister Helen, Madeleine Clarke, the charity's Community Fundraising Manager spoke about how the charity works and what it does. Local Buckinghamshire...
At the recent circuit consultation, we asked how 'Our Calling' might affect the future of our churches as we consider plans for growth or even end of life. For those who could not be there, it was an excellent evening in which we thought not only about serious issues for the life of the church but also laughed and shared together as a circuit. Many thanks to Keith, Donna & Pete who...
Room 2 / Hall