Will buyers paying a penny a pound more for tomatoes help farm workers ?

An article in ozy.com (January 16,2014) titled “A Penny a Pound and so much more”, describes the push by the Coalition of Immokalee Workers to get buyers like Taco Bell, Subway, McDonalds, WalMart and Whole Foods to pay a penny a pound more for their tomatoes. The goal is to get these funds back to farm labor, with the impact being to double their wages. With retailers accepting this price increase, and the Florida Tomato Growers Exchange now permitting these funds to go to farm labor, the question is whether this approach can be expanded to other products. Can textile manufacturers be pressured to ensure fair labor cost payments to employees across the world ? Should the consumer bear the higher product cost or should this come from distributor margins ? Should one expect base labor costs paid to farm labor to decrease to compensate for these flows ?

Advertisements

About aviyer2010

Professor
This entry was posted in Operations Management, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

One Response to Will buyers paying a penny a pound more for tomatoes help farm workers ?

  1. Doesn’t this idea violate all sorts of basic economics? If we want to raise it 1 cent, why not 5 cents? How sensitive is demand to the price? Considering the plethora of potential substitutes, demand is probably very price sensitive. To me, this amounts to either a tax on tomatoes or collusion if EVERY tomato farmer agrees to participate.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s