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I recently read an article about quinoa by the Guardian that highlighted an “unpalatable truth” about the new Western grain du jour: first-world consumption has caused prices in Peru and Bolivia to increase, putting financial pressure on families that depend on the grain as a staple in their diets.

We might be tempted to generalize this to other “essential” goods–food, wood, metal, textiles, and the like–and assume that increasing how much of these goods we buy is going to be bad for the local populations of the exporting countries. We may also believe that this leaves us in a precarious moral position: when we buy quinoa, we’re potentially contributing to the suffering of impoverished Bolivian and Peruvian people.

But here’s something to consider: let’s say that first-world buyers became aware of the moral precariousness of purchasing quinoa and stopped buying it. The price of quinoa would drop, perhaps putting farms out of business until the supply fell to meet the demand. This would mean farmers losing their jobs and also struggling to feed their families.

So the ethical buyer–that is, someone trying to ensure that their purchasing does not negatively affect others–is in a quandary: if one buys an imported good, one may be making that good harder to purchase for locals. If one doesn’t buy an imported good, one may be contributing to the elimination of much-needed jobs.

Can a socially-conscious buyer get out of this dilemma? Join the conversation in the forum or leave a comment below with your thoughts!

45 Comments

  • Adrian de Winter, May 12, 2015 @ 3:24 pm Reply

    Interesting concept, I believe the crux of the situation is sitting in the pricing between what you export and what you charge locally and for the local distributors not to take advantage of international excess demand to raise prices in the local economy.

    So for example:

    If the international demand is 1500 units and the local economy only demands 500 units, we need to supply 2000 units. If there was no international demand then we would have to only supply 500 units and may have smaller operations but the price might be relatively low.

    If increasing the operation to accommodate the extra 1500 units of demand requires price increases, pass that pricing onto the international market as much as possible while keep the local pricing fixed or as stable as possible at a lower point.

    The problem is that not everyone would play ball and you would have to use legislation to enforce price capping on the local supply which is open for different kinds of abuse and mostly regulating isn’t always in the best interest of an industry’s growth and can also have knock on effects on wage costs or even labour/capital trade-off. Perhaps they even decide it is no longer in their benefit to supply locally at all because the higher profit is in export which then forces local distributors to import the units for local consumption instead of it being produced locally. This results in even higher pricing points than those that would have occurred from the increased demand internationally via exports.

    Alternative scenarios include the highest quality all being exported and the junk remaining locally at an inflated price (this is most common among most export products) or a complete failure of the entire industry depending on what kind of regulation you apply.

    Some cases worth looking into would be the Milk production in South Africa:
    1. Short Version: Distributors squeezed the farmers so hard on such low margins that majority of the milk producing farms just stopped because it isn’t worth it and changed to different farming.

    Coal Exports in SA:
    1. Basically almost all of the high-grade coal gets exported to other countries now and our only power generating utility in the country gets quality that is basically like burning rocks.

    While these aren’t directly related to the topic at hand, trying to meddle too much with the ethical buyer balance through legislation can easily result in the above scenarios.

    • Something to Consider, May 13, 2015 @ 2:54 am Reply

      This is really sophisticated; thanks a bunch for the input.

      I think it looks like it’s just a tough problem to solve.

      I wonder if there’s an upside to it all? Do higher prices and higher exports mean, long-term, more jobs and economic growth that will help down the line?

  • Katherine Riker, May 12, 2015 @ 4:16 pm Reply

    This comes up over and over. Just yesterday I had a conversation about the recent NY Times article about nail salon workers. (http://www.nytimes.com/2015/05/10/nyregion/at-nail-salons-in-nyc-manicurists-are-underpaid-and-unprotected.html?_r=0) NYC nail salons are over saturated and treat their workers incredibly poorly. But if people stop getting the manicures, these workers will be without jobs at all.

    What Adrian says below is really it. Legislation is necessary to control this, but its hard to get right.

  • Chris McAdam, May 13, 2015 @ 12:41 pm Reply

    A simple solution to this, amazingly, would be free trade agreements. Rice sells for much less than Quinoa. Exporting rice at a lower cost per serving to the countries producing it gives them a cash crop and the capacity to feed more of their people.

  • Tomáš, July 11, 2016 @ 10:30 pm Reply

    Actually, quinoa is not staple food for south Americans. And the problem is not with poor farmers loosing jobs because of low prices, but farmers in lowlands farming quinoa after its price rose and thus taking jobs from the farmers in mountains where nothing else grows.
    So the answer is to know where does the quinoa come from. But with country-labels that’s hard to say.

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