Fairtrade is a tool for development which ensures disadvantaged farmers and workers in developing countries to get a better deal.
It establishes a minimum price that a buyer of Fairtrade products has to pay to a Producer Organisation for their product. It is not a fixed price, but should be seen as the lowest possible starting point for price negotiations between producer and purchaser. It is set at a level which ensures that Producer Organisations receive a price which covers the cost of sustainable production for their product. This means it also acts as a safety net for farmers at times when world markets fall below a sustainable level. However, when the market price is higher than the Fairtrade minimum,the buyer must pay the market price.
Apart from the minimum price, Fair Trade also ensures a premium, a sum of money paid on top of the agreed Fairtrade price for investment in social, environmental or economic development projects, decided upon democratically by producers within the farmers’ organisation or by workers on a plantation – in our case, the Joint Body.
The Premium on pineapple is US$ 0.05 per kilo / US$ 6.0 per box ( a box is 12 kilos), on average, we receive approximately US$ 50,000 as Fairtrade Premium.
These are the projects in which the workers have decided to use the premium:
AIDS education campaign / condom distribution – this project benefits not onlyGold Coast Fruits workers, but also the communities around it: Otateng, Akutiaku, Mmaampehia and Ashifla, totalling x number of people – Ist totally yearly cost is estimated at US$ 13,000, which will be partly - 50% - funded by Gold Coast Fruits.
Vaccination – in 2010 all workers received hepatitis B vaccination
Obom clinic – The Joint Body has agreed to renovate the maternity ward and add 10 beds to the only clinic within 15km radius from the farm.
In 2010 admission fees were paid for all worker’s children who entered Senior secondary schools. This year 20 students have benefited from this program.
Since 2011 a reading clinic is organized for 4 schools around the farm and 700 children benefited from free school books. Teachers were given incentive to help improve the students’ perfomance, by receiving a cash award when 50% or more of his class passes the reading test. This exercise saw a 14.5% improvement inpupil’s reading ability after the first year.
Scholarships will be granted for children of deceased parent who worked for Gold Coast Fruits and were already benefiting from the education support
Canteen subsidy – a canteen was built at the farm, for all workers to receive a daily lunch. The Fair Trade Premium is used to absorb 30% of the cost of the meal.
• CAPACITY TRAINING
Any worker wishing to take up an additional course or learn a vocational trade during the weekends or leave period, can do so and have ist cost paid by the company – up to US$ 250 per worker.
So far, workers have taken courses to learn baking, driving, tye dye technique, hair dressing, etc.
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