Why Trade, Not Aid CASE STUDY: Banana farming in the west of the Dominican Republic
Situation As a small farmer: As a small farmer: Alfredo couldn ’ t sell his bananas for export due to uncertainties in the domestic market Alfredo couldn ’ t sell his bananas for export due to uncertainties in the domestic market Sometimes he couldn ’ t feed his family Sometimes he couldn ’ t feed his family Sometimes he couldn ’ t sell any of his crops Sometimes he couldn ’ t sell any of his crops
Yr 2000: Fairtrade Foundation Fairtrade Foundation stepped in and cooperated with farmers in 2 villages- Juliana and Jaramillo Fairtrade Foundation stepped in and cooperated with farmers in 2 villages- Juliana and Jaramillo
How this helped Alfredo Alfredo ’ s bananas now sold in Sainsbury suprmarkets Alfredo ’ s bananas now sold in Sainsbury suprmarkets Is guaranteed minimum price the whole year Is guaranteed minimum price the whole year Earns double what he earned previously Earns double what he earned previously
How the community was helped They earn a steady income They earn a steady income The receive a ‘ fairtrade premium ’ to spend on community projects, such as: The receive a ‘ fairtrade premium ’ to spend on community projects, such as: Bringing water to the villages (where water used to be sold at 40 pesos a day). Now, they only contribute 40 pesos a month for maintenance of the generator. Bringing water to the villages (where water used to be sold at 40 pesos a day). Now, they only contribute 40 pesos a month for maintenance of the generator.
…The premium also pays for: Toilets Clinic Community canteen (where 200 people can get a meal at a lower price). Farmers have also upgraded the roads, drains, irrigation schemes Farmers have funded uniforms for students
The fairtrade commitment The farmers employ 60 workers to harvest, and pack the bananas. They are paid above the minimum wage. The fairtrade commitment includes environmental issues such as clearing up plastic bags and protecting bananas on trees.
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