What is the business and social case that can be made to consumers as to why paying more for Fair trade products might be the right thing to do?

Question

What will be an ideal response?

Answer 1

but pull from the text description of costs of fair trade goods: How much extra do fair trade products cost? That varies by product and company; however, the costs can often be kept relatively close to the price of non–fair trade products, as illustrated by the coffee market. According to Fair Trade USA, coffee importers buy directly from growers at $1.31 per pound (10 cents above prevailing market rates), or $1.51 per pound (20 cents above market rates) for organic coffee (TransFair USA, 2007). Although the prices paid by importers are not much more than the prevailing market rates, the monies go directly to the growers instead of to middlemen. As a result, the grower receives a higher price than the 40 cents per pound that they received via middlemen (Bojarski, 2002). How does that translate into cost differentials for the end consumer? Starbucks, one of the largest coffee chains in the United States, offers 1-lb. bags of fair trade coffee beans (mild blend) for $11.45 per pound compared with $9.95 per pound for comparable non–fair trade beans, a 15% difference. Fair trade products do not categorically cost more than conventional products, and the cost can depend on the extent to which small cooperatives can handle the considerable shipping and logistical requirements of moving their products to market.