The impact of FT on small farmer; The Case of Union of Indigenous Communities of the Isthmus Region in Mexico and Society of Small Producers for Coffee Export in Nicaragua

The effects of the globalization of the economy have been diverse and the fruits of liberalization have not been enjoyed by all. Neoliberal policies have opened up national markets to international competitors. In Latin America the traditional cultivation of coffee by small farms started to become challenged due to the subjection to the competition with multinational enterprises. Farmers have set up cooperatives and the Fair Trade Organization have assisted them to obtain a fair access to the market. In addition, fair trade cooperatives intent to promote the development of the farmers’ living standards. The Fair Trade cooperative, Union of Indigenous Communities of the Isthmus Region in Mexico and Society of Small Producers for Coffee Export in Nicaragua, seem to have reduced the vulnerability of farmers to fluctuating market prices. Although, the Fair Trade cooperatives have offered farmers a platform of development and sustainability, the effects of Fair Trade and the cooperatives...Show moreThe effects of the globalization of the economy have been diverse and the fruits of liberalization have not been enjoyed by all. Neoliberal policies have opened up national markets to international competitors. In Latin America the traditional cultivation of coffee by small farms started to become challenged due to the subjection to the competition with multinational enterprises. Farmers have set up cooperatives and the Fair Trade Organization have assisted them to obtain a fair access to the market. In addition, fair trade cooperatives intent to promote the development of the farmers’ living standards. The Fair Trade cooperative, Union of Indigenous Communities of the Isthmus Region in Mexico and Society of Small Producers for Coffee Export in Nicaragua, seem to have reduced the vulnerability of farmers to fluctuating market prices. Although, the Fair Trade cooperatives have offered farmers a platform of development and sustainability, the effects of Fair Trade and the cooperatives internal procedures are likely to be influenced by the social, economic and political context of each country. However, while limitations are present to the effects of Fair Trade, the organization has provided a positive step in the process of sustainable development and equitable international trade.Show less

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The impact of FT on small farmer; The Case of Union of Indigenous Communities of the Isthmus Region in Mexico and Society of Small Producers for Coffee Export in Nicaragua