{{Short description, Economic principle Fair Chain aims to establish a more equitable

distribution Distribution may refer to: Mathematics *Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations *Probability distribution, the probability of a particular value or value range of a varia ...

of returns in a production chain. For many products, the

export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is a ...

ing country or farmer receives a disproportionate percentage of the retail price relative to the seller. In turn, fair chain extends beyond fair trade by focusing on supply chain integration in addition to pricing. In 2012, the fair chain principles were first developed by

Dutch Dutch or Nederlands commonly refers to: * Something of, from, or related to the Netherlands ** Dutch people as an ethnic group () ** Dutch nationality law, history and regulations of Dutch citizenship () ** Dutch language () * In specific terms, i ...

-born

entrepreneur Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk (assumed by a traditional business), and potentially involving values besides simply economic ones. An entreprene ...

Guido van Staveren van Dijk when he founded Moyee Coffee, a Dutch-

Ethiopian Ethiopians are the native inhabitants of Ethiopia, as well as the global diaspora of Ethiopia. Ethiopians constitute several component ethnic groups, many of which are closely related to ethnic groups in neighboring Eritrea and other parts of ...

company. Moyee applies the fair chain concept in

coffee Coffee is a beverage brewed from roasted, ground coffee beans. Darkly colored, bitter, and slightly acidic, coffee has a stimulating effect on humans, primarily due to its caffeine content, but decaffeinated coffee is also commercially a ...

production by roasting, mixing and packaging beans in the

country of origin Country of origin (CO) represents the country or countries of manufacture, production, design, or brand origin where an article or product comes from. For multinational brands, CO may include multiple countries within the value-creation proce ...

, instead of in

Europe Europe is a continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...

or the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

as is standard practice. This business model helps retain more

added value {{One source, date=June 2010 Added value in financial analysis of shares is to be distinguished from value added. It is used as a measure of shareholder value, calculated using the formula: :Added Value = The selling price of a product - the cost ...

in the producing country and fits into the idea of

creating shared value Creating shared value (CSV) is a business concept first introduced in a 2006 ''Harvard Business Review'' article, ''Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility''. The concept was further expanded i ...

. Moyee directly aligns its economic and social interests by: * paying a large premium on the local price for beans * roasting locally, in a

joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acce ...

with local partners who invest in improving the

agricultural Agriculture encompasses crop and livestock production, aquaculture, and forestry for food and non-food products. Agriculture was a key factor in the rise of sedentary human civilization, whereby farming of domesticated species created f ...

and living conditions * allocating profits to fund social projects that reinforce the fair chain principles Other initiatives considered to operate according to fair chain principles include Escoffee in

Ecuador Ecuador, officially the Republic of Ecuador, is a country in northwestern South America, bordered by Colombia on the north, Peru on the east and south, and the Pacific Ocean on the west. It also includes the Galápagos Province which contain ...

and Azahar Coffee in

Colombia Colombia, officially the Republic of Colombia, is a country primarily located in South America with Insular region of Colombia, insular regions in North America. The Colombian mainland is bordered by the Caribbean Sea to the north, Venezuel ...

("Value Added at Source").

References

*Schalekamp, M. (2012) Max Havelaar, 2.0, NRC Handelsblad. 30 November 2012, *Porter, M.E. en Kramer M.R. (2011) "Creating Shared Value", Harvard Business Review, January 2011 Fair trade