What is unfair trade?
Companies like Mars and M&M will buy cocoa beans at a price that reflects their market value. They will try to pay as little for them as possible, whilst the cocoa farmers try to sell them for as much as possible. If both the sellers and the buyers have an equal relationship a fair price would be reached. Unfortunately third world farmers and international corporations do not have an equal relationship. Even without the existence of unfair trade agreements, farmers are in the weaker position. They must sell their crop to survive – the chocolate producing company can buy elsewhere. If the chocolate producing company loses out in the deal, they lose some of their profit – if the farmer loses out in the deal, they could lose everything. Generally speaking the more cocoa beans there are, the less they will be worth. Often the price paid for the cocoa beans is lower than the cost of producing them. Even if the costs are covered, it is very unlikely that there will be any money left for futu
