Americanism eh? I feel the author is not very well informed about the inner workings of fair trade or economics. The price of fair trade is not set by some government body, rather market conditions. Despite making the incorrect assumption that field prices (farmer) and market prices (finished product on shelf) are directly correlated, he is however correct that there is a price fixing. It's called a price floor, that insures that the farmer is paid a minimum amount for this product. The price floor has never been used yet (to the best of my knowledge).
Also Starbucks made their own 'fair trade' system to avoid the cost of TransFair. Also Starbucks' system is not as open to verification as TransFair.
Both systems work for environmental protection.
Americanism eh? I feel the
Americanism eh? I feel the author is not very well informed about the inner workings of fair trade or economics. The price of fair trade is not set by some government body, rather market conditions. Despite making the incorrect assumption that field prices (farmer) and market prices (finished product on shelf) are directly correlated, he is however correct that there is a price fixing. It's called a price floor, that insures that the farmer is paid a minimum amount for this product. The price floor has never been used yet (to the best of my knowledge).
Also Starbucks made their own 'fair trade' system to avoid the cost of TransFair. Also Starbucks' system is not as open to verification as TransFair.
Both systems work for environmental protection.
To the author: Please support your thoughts,