Are Fair Trade products more Expensive?

Fair trade makes sense for being expensive

 

Fair trade has always had a very intuitive impression of the public, that is, it is more expensive than ordinary products, and the price is the result. There are always reasons :

 

1. the reasonable return to ensure the quality

Most fair trade products are produced in third world countries, which will give the public the illusion that the quality produced is inferior, but in fact, under the fair trade system, the income of small farmers is guaranteed, and they have the resources to improve the quality of agricultural products. To ensure that small farmers can have reasonable returns and to ensure certain quality of agricultural products.

 

2, committed to protecting the environment

The process of a product reaching you is very complicated. The price on the product contains more than one number of information. The reason behind the same price may be completely different. The expensive price may include excessive packaging, excessive profits, and high shelf fees. 3. Advertising costs are passed on; low prices may have paid the difference for you from hidden costs, including the invisible social and health costs of using fertilizers, damaging the environment, choosing inferior raw materials, poor hygiene, and exploiting labor.

 

The fair trade operation model emphasizes environmental sustainability and is destined to have higher costs. The “expensive” part of this is precisely the invisible social costs and health costs.


3, small market size

Fair trade products are still a minority in the market, and currently only account for 1% of global physical commodities. Most producers adopt the simplest small-scale production mode, and the relative production time and cost are relatively high. If the demand for fair trade products can gradually increase in the future and reach economies of scale, prices will naturally decrease.

 

In fact, the price of fair trade products does have a downward trend. For example, in 2003, fair trade coffee was about one pound more expensive than average coffee, but now it is only about 0.1 pound more expensive.

 

The farmers of the Third World seem to be very far away from us, but in fact, our daily necessities are closely related to them under globalization, so participating in the fair trade movement is not only to protect producers, protect the environment, to join and expand the fair trade market and ideas, but also to love ourselves An option.