The value of a dollar
$1 usd is equivalent to PHP 50*
To the average consumer like you and me, $1USD does not seem much...
Yet to farmers, the small profit of $1 USD (PHP 50) from selling to Fairtrade NGOs results in a large increase in annual income and significant improvements in living standards.
Costs of rice production
On average, farmgate prices of palay range from PHP7-PHP12 per kg, which translates to $0.14-0.24 USD. Small farmers who sell around 50kg of rice only receive PHP400 ($7.94 USD) for the entire season. Click to see the profit-cost breakdown that explains why farmers receive such meager incomes.
Coffee supply chain
From seed to cup, the coffee production process requires expertise and intensive labor. Despite the coffee industry generating more than $200 billion per year, the average farmer's income has declined in the past 20 years. Passing through growers, traders, processors, exporters, and retailers, each step of the production process adds value to the cup of coffee. Yet, the lack of transparency prevents small farmers from understanding the value of their produce and negotiating for a higher income.
Before we dive in, let's take a look at 2 examples showing the extent and cost of middlemen intervention.
Here are a few examples of different types of products sold at non-fair trade vs fair trade prices. Click on each image to see the impact of paying a few extra dollars for fair trade products!
Impact of purchasing fair trade cotton shirts
Contributing to millions of jobs and bringing over £1 trillion in revenues across the world, the fashion industry dominates the global economy. Yet, the use of slave labor is most common in the garment and cotton industries.
Banning employment of child labor and the use of highly dangerous materials, Fair Trade certified factories operate under safe working conditions and prioritizes the wellbeing of their workers.
