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Conventional coffee trade

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Presentation on theme: "Conventional coffee trade"— Presentation transcript:

1 Conventional coffee trade
vs Fair trade

2 Conventional Coffee Trade
click on the button to know more Coffee Fair Trade click on the button to know more conclusion

3 Conventional Coffee Trade from crop ... to cup
Click on images to know more Farmers Local speculators Exporters In the conventional coffee route, small producers sell their coffee to middle man, who sells it to a transformer. Then the coffee is sold to an exporter who sells it to a broker. The broker sells the coffee to an importer, who sells it to the coffee roaster, who sells it to a distributor, who sells it to the retailer who eventually sells the coffee to the consumer. After this extensive chain of transportation, the original small producers and workers lose out an incredible amount of income because during each step, a fraction of the profit is lost. A free trade system works like that. Consumers Retailers Manufacturers Brokers

4 Farmers Working in a factory is hard, we are not well treated and if we become sick we have no protection Small farmers, get a 4% of the retail price of coffee. Low prices and lack of control trap farmers in a cycle of poverty and debt.

5 Local speculator Local speculators are intermediary traders who buy coffee from small farmers who don’t have access to credit, transportation and information. They offer loans at extremely high rates of interest and under the condition that farmers sell their coffee at greatly reduced prices

6 Exporters Exporters are either independent companies or subsidiaries of multinational corporations that export coffee beans to importers in other countries. The primary goal of the conventional exporter is to buy coffee at the lowest possible price and resell it for the highest possible profit.

7 Brokers Brokers buy and sell coffee. They act as intermediaries between exporters and importers

8 Manufacturers, Roasters
Most roasters buy their coffee from importers; they roast and package the coffee, then sell it to distributors.

9 Retailers Retailers are grocery stores, restaurants, cafés, etc, that sell coffee to consumers.

10 Consumers I don’t know the conditions under which this coffee
was produced and traded.

11 Coffee fair Trade Click on images to know more Importers
Fair Trade cooperatives Fair Trade enables cooperatives to bypass middleman and sell directly to North America, Europe and Australia importers at fair prices. Non Profit Organizations such as Oxfam play a significant role in this Fair trade awareness and demand for Fair Trade products through consumer education programs. Consumers Retailers Roasters

12 Fair Trade cooperatives or associations
Farmers are members of cooperatives which sell directly to Fair Trade importers in North America and Europe. These cooperatives are democratically organized and often invest a portion of the Fair Trade premium into community development, quality improvement and environmental protection programs.

13 Importers Importers buy directly from certified cooperatives and pay the Fair Trade price. There are importers certified by TransFair to sell Fair Trade Certified coffee to roasters. These labels testify the coffee is Fair Trade

14 Roasters Roasters buy only from importers certified, and roast and package coffee for retail sale. They have signed agreements with TransFair USA to use the “Fair Trade Certified” label. Through marketing and consumer education, roasters teach their customers about Fair Trade.

15 Retailers Retailers include: grocery stores cafés restaurants
dining services that sell Fair Trade coffee directly to the consumer.

16 Sensitized Consumers I ask for Fair Trade Certified coffee.
Consumers are the engine driving the Fair Trade movement.

17 a fair price and safe working conditions for producers and also
Fair Trade guarantees a fair price and safe working conditions for producers and also supports sustainable practices that minimize our environmental footprint.

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