Coffee industry

What do I know about coffee industry? Well before this assignment I did not know much about coffee industry, apart from just few names of different coffee blends. But after reading the given article and other information on internet I came to know that Coffee Industry is always been known for its joint system of production, milling, marketing, processing and auctioning coffee. Most of the coffee is grown in Africa, Asia-Pacific region and in Costa Rica; South America. Coffee that we use in New Zealand is imported mostly from Asia-Pacific region rather than Africa or South America.

Many of the world's coffee farmers have been suffering from hardships, their families not getting the necessities of life because of bad trading system. Prior to fairtrade in coffee industry, it was a well known fact that most of the profit was made by manufacturing companies rather than farmers or producers, sometimes farmers even had to sell their coffee under or at the cost price. Because of that fact a lot of farmers stopped growing coffee beans and some of them even quit farming. Then there was a big rise in poverty in the local communities of Coffee farmers. Fairtrade has provided a safety net for coffee farmers in terms of fairtrade Premium. Fairtrade Premium provides extra money to farmers and their community so that they can build up schools, hospitals and invest some money of that money in to their coffee business. Fairtrade premium has provided an opportunity for economy development. Fairtrade is also providing economics benefits to farmers.

No I have never considered using fair trade coffee before. I am not a big fan of coffee so I hardly ever go to supermarket to buy coffee, because of that I didn't have much awareness about fairtrade system in coffee industry. Since now I am aware of Fairtrade coffee I think I will try buy only fairtrade coffee if it doesn't hurt my pocket even more.

After reading these articles, I would consider using fairtrade coffee because now I am aware of the benefits of the fairtrade system to farmer, producers and manufacturers. Now I also realize the importance of paying the right price to farmers because they are the ones who face considerable problems due to collapsing prices and an increase share of the benefits of the coffee sales being captured by the processors of the develop countries. fairtrade system does not only help farmers instead it also helps end customer in selecting the product that is fairtrade approved, through its fairtrade labelling system.

After discussing fairtrade coffee system with my friends and family I have received mix reactions from them. Some said they are already using fair-trade coffee simply because they like to pay the fair price for their food so that farmers get the fair price for their crops and some said they would buy fair-trade coffee if they don't have to pay more than what they are paying now for their coffee. I believe if we increase the awareness of fair-trade coffee, then a lot of customers would buy fair-trade coffee.

Fair Trade Vs Free Trade

Free and fair traders have a large amount of common ground. Both traders are worried with global justice, rise in poverty within farming community and global success.

Fair trade system refers to trades, the terms of which meet the demands of justice where asFree trade is a trading system that allows trader to trade without any interference from government or any third party, free trade refers to general openness to exchange goods and information between and among nations with very less or no barriers to trade, trade without any rule!.

Supporters of fair-trade system says that trade between developed and under underdeveloped countries take place with uneven terms, and trade should take place with fair terms, there should be no partiality. The Fair Trade Federation's Annual Report describes the fair trade movement as "a global network of producers, traders, marketers, advocates and consumers focused on building equitable trading relationships between consumers and the world's most economicallydisadvantaged artisans and farmers”.

On the other hand, free trade supporters say that under this system the demands of justice are met. Free traders also hope to reduce poverty and help farmers in their financial problems but the method to that is less interfering and disturbing than fair-trading system. Free traders believe that that free trade is fair trade.

After reading some information about free and fair trading system, I came to conclusion that both trading systems have its pros and cons but fair trade system provides much more help to farmers than free trade system.

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