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Credit
Loans are normally available from RECOCARNO
to allow the co-operatives to pay the member farmers. Pre-finance is available through STABEX (the EU funded programme managed by the Ministry of Agriculture) or through FT buyers. The cooperatives often contribute their own funds towards produce purchase.
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I've been in the co-op for twenty years. As far as price goes it's going quite well - the price the co-op is getting is much better. At first, before the co-op was set up, we would have to take out loans at very high interest in order to send the children to school. Now with the co-op we're getting something back. Now the coffee is worth something. Before, we didn't get anything, even after the harvest.
Julien Mistidor, COSAHEC, Carice |
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At its annual meeting, the the General Assembly approves the operational plan and provisional budget for the year
Payment
The farmer is paid between $0.36 and $0.50 for each pound
of coffee accepted at the washing station, before any end-of-season
ristourne. RECOCARNO will receive $1.26 per lb for
sales to the Fairtrade market (as a minimum).
Ristourne
At the end of the season, RECOCARNO determines the share of
the selling price that can, after taking account of the costs
incurred by the network and co-operatives, be returned to
the farmers. This can average $0.35 per lb (e.g. 2004-05 season),
giving the farmer between 56%-65% of the total Fairtrade price.
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Community Benefit
$0.05 per lb of coffee sales has been withheld by each cooperative
to fund a community project of their choice. Impact on Consumers
The price paid for coffee by the importer, prior to roasting
and distribution, is a small proportion of the total selling
price. the Fairtrade prices only increase costs to consumers
by five cents per cup.
Prices
The current world market price for Arabica coffee is about
half of the price paid by Fairtrade importers.
See also the web pages giving background on RECOCARNO's prices,
the volatile price environment in which it operates and the
Fairtrade mechanisms that aid stability and fairness.
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