Fair Prices to Achieve a Living Income for Small Farmers and Its Relation to Local Food Purchase Programs

Abstract

Based on the Living Income concept, a methodology has been developed to calculate ‘fair’ prices for peasants for different crops. Application of this method can guide both policy makers and companies in their development of ‘ethical’ policies, based on the Universal Declaration of Human Rights. “Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity...” An explanation of the living income / fair price methodology and a practical example of its application, is followed by arguments why market prices are not sufficient to combat poverty among peasants and why a paradigm shift from the use of prices decided by the market with all its imperfections, to an approach founded on ethics is needed. Particular attention is given to local food purchase programs.