Posts Tagged ‘Fair Trade’

How much money do rice farmers need to make from farming?

Friday, March 30th, 2012

Bags of rice for sale in a JA retail outlet

The Trans-Pacific Partnership trade agreement, which Japan endeavors to join, continues to be controversial, though most people in Japan only have knowledge about the broadest arguments. If Japan joins TPP, it’s the end of Japanese agriculture; if it doesn’t, Japan will not have access to one of the biggest markets in the world.

Several recent articles in the Asahi Shimbun at least give some idea of what rice farmers stand to lose or gain from the agreement. Two farmers are profiled, one in Fukui Prefecture, the other in Aomori prefecture. The Fukui farmer works a one-hectare paddy that he inherited from his father about 15 years ago. The paddy yields about 96 hyo (1 hyo = 60 kg) a year and ¥1.47 million in revenues, which breaks down to ¥1.1 in sales and the rest in government subsidies. When the Democratic Party of Japan became the ruling party, it threw out the old Liberal Democratic Party subsidy system, which basically discouraged farmers from growing rice. The DPJ subsidy, called kobetsu shotoku hosho (individual income compensation), pays them to grow by making up for any losses they might incur due to low market prices.

The Fukui farmer’s annual expenses for cultivating his paddy run to about ¥1.77 million, which includes ¥520,000 for outside labor. It’s implied that the paddy owner himself does very little actual farming. On his tax return he also lists in the loss column ¥600,000 in depreciation for his farm equipment. All in all, the farm in 2010 lost ¥300,000. However, he says it doesn’t really bother him. His main job is working for an electrical parts maker, which pays him a salary of ¥5.3 million. His wife also works, earning ¥2.8 million.

Continue reading about the cost of growing rice →

Fair Trade turns from a movement into a brand

Tuesday, November 15th, 2011

Guilt-free indulgence

We stopped buying chocolate after seeing a March 2010 BBC Panorama report about child slavery on cocoa plantations in western Africa. Ghana and Cote d’Ivoire produce 60 percent of the world’s cocoa, and much of the picking is done by children who are sold to plantations by their impoverished parents or human traffickers. Some cooperatives that had been approved for Fair Trade status were later found to have used child labor and suspended from receiving the designation by the Fair Trade Foundation. That meant their cocoa could not be used in chocolate that received the Fair Trade label, which indicates that production followed certain standards and producers were being paid a “fair” price for their wares. The BBC’s point was that almost any chocolate that did not bear the Fair Trade label was likely to have been produced by slave labor.

Once or twice a year, however, we do buy Fair Trade chocolate from People Tree Japan through a local food cooperative. People Tree is a non-profit group that specializes in Fair Trade products from all over the world. According to the organization’s literature, the cocoa that goes into their chocolate bars is produced in various South American countries and Ghana, and then processed in Switzerland under the People Tree brand. Shipments of the chocolate to People Tree are not continuous. When the NPO receives a periodic shipment they announce it through their various distributors, and apparently stocks sell out rather quickly. The chocolate isn’t cheap: ¥290 for a 50-gram bar. At your local supermarket you can buy the same size chocolate bar made by Meiji, Morinaga or any other major confectionery company for as low as ¥100. Does the People Tree chocolate taste better? That’s a matter of personal preference, but chocolate is chocolate. In any case, it’s apparent that people buy it because of the Fair Trade label.

Continue reading about Fair Trade products →

Motherhouse: beyond Fair Trade

Thursday, October 1st, 2009

The new Iriya store

The new Iriya store

There isn’t much that individual consumers can do to right the economic balance between the developed world and the developing world. Promoting sustainability in poorer regions basically amounts to paying local producers higher prices for products they export than what they are getting, something that multinational companies, which usually do the exporting, are not prone to doing. Given the gulf of distribution that separates the average housewife in Chiba and the average tea plantation worker in Sri Lanka, there’s very little the former can do to directly help the latter.

Except buy Fair Trade-labeled products. Various world organizations certify producers who guarantee, among other things, that their employees earn a decent working wage and give them some say in the operations of the farm or factory. Thus, when that housewife buys some black tea at her local Ito Yokado with a Fair Trade label on it, she can feel assured that more of her money is going to the people who produced it rather than a host of middlemen-multinationals.

Continue reading about Fair Trade and Motherhouse →

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