Is Fair Trade coffee expensive?

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Present every morning when we get up, in our after-dinner conversations, in a good chat with a friend and even in those moments when we decide to relax and forget about the world. But... are we aware of where that coffee that accompanies us at various times of the day comes from? Probably yes, and as with coffee, we like to consume responsibly all the products we consume in our daily lives, since our purchasing decisions have an impact many times greater than we think . However, sometimes we may feel that Fair Trade products are a little more expensive. With coffee for example, are we really paying more for each cup we drink when compared to other brands that are not Fair Trade? fair-trade-coffee More expensive raw materials and lower economies of scale It is true that the final cost of Fair Trade products can become more expensive because a fair price is paid for the raw material – the grain – to the producers, who are mostly local farmers . This eliminates the circle of exploitation of both the land and the societies that live on it. On the other hand, since production is done in a much smaller volume , it is not possible to apply economies of scale typical of large productions.

This case, the greater the sales volume, the easier it is to reduce production and transportation costs for each package of coffee. Free download: Lower margin These two increasing factors are offset by a lower commercial margin . The margin (difference between the price at which I sell the coffee and the cost of producing it) in Fair Trade markets is almost non-existent. It must be taken into account that coffee is characterized by being quoted on the world raw Albania Mobile Number List materials market, so the price of the bean varies constantly. Fair Trade, however, is characterized by guaranteeing minimum prices set to producers as well as long-term commercial relationships. It is part of the sustainability philosophy ; Instead of the benefit going to the intermediary, it is shared much more between him and the producer of origin. Lower advertising spend Care is taken to ensure that advertising expenditure for Fair Trade coffee brands is not excessive. The advertising logic of the organizations that market it revolves around cost reduction, to invest all their profits in development projects , microcredits to coffee producers and other forms of collaboration on local soil.



The negative part of this fact is that its ability to attract new consumers may be lower. However, the Internet and social networks have helped a lot, both in the elimination of intermediaries and in the possibility of having much cheaper means of dissemination and communication. And there you also have an active role: by sharing links and experiences you can make these products better known . The result, a competitive price The increasing popularity of Fair Trade coffee is making more people want to consume this product responsibly every day. This price-reducing factor, together with the aforementioned factors – lower structural costs, advertising expenditure and commercial margin – have brought the price of Fair Trade coffee closer to that of the conventional market. Currently the difference is less than 10%. fair-trade-coffee Violet Byamigisha, a farmer from the Katenga community (Uganda) collecting Arabica coffee beans. The Ankole Cooperative brings together associations of small and small farmers in the region promoting coffee production for subsequent commercialization through Fair Trade. © Pablo Tosco / Oxfam Intermón fair-trade-coffee Freshly harvested coffee beans in Ankole, Uganda © Pablo Tosco / Oxfam Intermón Fifteen years ago you paid almost double for a kilo of Fair Trade coffee. Today, you pay less than 10% more.