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Mainstreaming Fair Trade Coffee: Strategies and Differences with Free Trade

   

Added on  2023-06-07

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Running head: ESSAY 0
sustainibilty and business
SEPTEMBER 15, 2018
Mainstreaming Fair Trade Coffee: Strategies and Differences with Free Trade_1

ESSAY 1
The fair trade coffee market was facing the crisis in 2008. In the various industry, it is found
that the survival will require mainstreaming fair trade coffee in non-special brand such as
Maxwell house and Folgers. In the present time, the procedure of mainstreaming fair trade
and development of substitute sustainability norms in the industry of coffee is observed. The
coffee industry was second most merchandised commodity after the oil. Two or more than
two billions cup of coffee were consumed daily (Estevez, Bhat and Bray, 2018). The size of
retail coffee market is more than seventy billion in respect of the sale.
In this essay, differences between fair trade and free trade, and the strategies adopted by
Fairtrade Labelling Organisation (FLO) to improve mainstreaming of coffee are discussed
and examined.
First, it is essential to understand the differences between fair trade and free trade. The fair
trade and free trade can sound same but the free trade and fair trade are considered as enemy.
The fair trade puts the limitation on the manufacturers and the farmers. The fair trade makes
force on the farmers to pay less wages. It accepts the secured working condition. On the other
hand, the free trade eliminates the restrictions for all the partners. These restrictions include
unregulated international export and international import, exemption of taxes, charges,
security of the members and annoying less wages. The fair trade creates the expensive things.
On the other hand, the free trade creates cheaper things. The main difference is that free trade
requires the employees to earn more, while the fair trade requires the employees to earn less.
For the solution of the problems related to Fairtrade, various plans and recommendations are
suggested to enhance the advantages of the Fairtrade and make sure the durable
sustainability. It involve both proposals related to supply and proposals related to demand.
Some recommendations related to supply contain motivating planters to differentiate their
manufacture, adapt conditions of Fairtrade Labelling Organisation to suit general
Mainstreaming Fair Trade Coffee: Strategies and Differences with Free Trade_2

ESSAY 2
requirements, and mix enticements in co-op association and the administration (Arana-
Coronado, et. al, 2018). Further, the suggestions related to demand involve the approaches to
improve the extent of the Fairtrade market of coffee. It also encourages Fairtrade Labelling
Organisation to stay open and result-oriented related to the procedures and strategies.
Following are the strategies to be followed by Fairtrade Labelling Organisation (FLO) to
make sure that the mainstreaming of coffee becomes successful-
1. Expansion and general conditions-
Co-ops must evade in contradiction of improbability using the various technologies. They are
suggested to advance more marketing relations directly with vendors of their goods. The old
developed co-ops are previously displaying predisposition to differentiate the marketplace of
sales. The Fairtrade can also be endorsed as an option for the producers to differentiate and
increase in the fields in which they are generally and globally competitive. The Fairtrade
labelling organisation must motivate generation of income by the diversification, making use
of the high Fairtrade price and Fairtrade Premium to purchase extra bags where to place
familiar eggs (Breuer, et. al, 2018).
It is advised that the great influence on strategies of diversification in high value markets be
motivated, making use of Fairtrade coffee like treading stone to enter into more marketplaces
and finally the conversion beyond coffee agriculture. In various circumstances, small holders
manufacture coffee in ineffective and economic way in the comparison of the production at
large scale. Transitioning out of the manufacturing of coffee will help to encompass the
advantages of Fairtrade coffee authorisation to the person who want it additionally, since the
conversion out of coffee helps in avoiding the domination of market by developed people
(Dietz, et. al, 2018).
Mainstreaming Fair Trade Coffee: Strategies and Differences with Free Trade_3

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