Fair chain: Difference between revisions

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Fair Chain aims to establish a more equitable distribution of returns in a production chain. For many products, the exporting country or farmer receives a disproportionate percentage of the retail price relative to the seller. In turn, fair chain extends beyond fair trade by focusing on supply chain integration in addition to pricing.

In 2012, the fair chain principles were first developed by Dutch-born entrepreneur Guido van Staveren van Dijk when he founded Moyee Coffee, a Dutch-Ethiopian company. Moyee applies the fair chain concept in coffee production by roasting, mixing and packaging beans in the country of origin, instead of in Europe or the United States as is standard practice. This business model helps retain more added value in the producing country and fits into the idea of creating shared value. Moyee directly aligns its economic and social interests by:

paying a large premium on the local price for beans
roasting locally, in a joint venture with local partners who invest in improving the agricultural and living conditions
allocating profits to fund social projects that reinforce the fair chain principles

Other initiatives considered to operate according to fair chain principles include Escoffee in Ecuador and Azahar Coffee in Colombia ("Value Added at Source").

References

Schalekamp, M. (2012) Max Havelaar, 2.0, NRC Handelsblad. 30 November 2012,
Porter, M.E. en Kramer M.R. (2011) "Creating Shared Value", Harvard Business Review, January 2011

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-{{multiple issues|
-{{Underlinked|date=April 2013}}
-{{Orphan|date=April 2013}}
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+{{Short description|Economic principle}}
-'''Fair Chain''' aims to establish a fairer distribution of returns in a production chain. For many products, this distribution is crooked, leaving the farmer or the exporting country a fraction of the retail price. Fair Chain goes beyond [[fair trade]], which mainly wants to guarantee farmers a fair price. Moyee, a Dutch-Ethiopean coffee company, in 2012 was the first organization to apply the chain concept in the coffee production chain by roasting, mixing and packaging beans in the country of origin, instead of in Europe or the United States as it is normally done. The aim of Fair Chain is  therefore to leave more added value in the producing country.
+'''Fair Chain''' aims to establish a more equitable [[distribution (economics)|distribution]] of returns in a [[supply chain|production chain]]. For many products, the [[export]]ing country or farmer receives a disproportionate percentage of the retail price relative to the seller. In turn, fair chain extends beyond [[fair trade]] by focusing on supply chain integration in addition to pricing.
-This way to operate fits into the idea of [[Creating Shared Value|creating shared value]], which means that in Moyee's case economic and social interests go hand in hand:
-* it pays a large premium on the local price for beans
+In 2012, the fair chain principles were first developed by [[Dutch people|Dutch]]-born [[entrepreneur]] Guido van Staveren van Dijk when he founded Moyee Coffee, a Dutch-[[people of Ethiopia|Ethiopian]] company. Moyee applies the fair chain concept in [[coffee]] production by roasting, mixing and packaging beans in the [[country of origin]], instead of in [[Europe]] or the [[United States]] as is standard practice. This business model helps retain more [[added value]] in the producing country and fits into the idea of [[creating shared value]]. Moyee directly aligns its economic and social interests by:
-* it roasts locally, in a joint venture with local partners who invest in improving the agricultural and living conditions
+* paying a large premium on the local price for beans
-* profits are used to fund social projects that the fair chain principle reinforcing.
+* roasting locally, in a [[joint venture]] with local partners who invest in improving the [[agriculture|agricultural]] and living conditions
+* allocating profits to fund social projects that reinforce the fair chain principles
+Other initiatives considered to operate according to fair chain principles include Escoffee in [[Ecuador]] and Azahar Coffee in [[Colombia]] ("Value Added at Source").
 ==References==