Criteria 3.1: Criteria 3.1: Prices paid for natural raw materials are fair
3.1.3 Cost calculations are periodically reviewed to reflect changes in cost of living and costs associated to the stepwise improvement measures required by this standard.
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inflation and deflation should be considered, as well as all currency instability
change in the cost of production and/or change in cost of living should be observed and reflected in the price calculation
the periodic increase in the minimum wage or local opportunity cost for labour (when relevant and available) should be considered in the price revision
investment in the supply chain in terms of social and environmental inputs should be promoted taking into consideration part of it (or its totality) in the price calculation, when agreed
prices are reviewed in a periodic basis (annually is suggested, but it may be for each season, or for a shorter period of time if the political and economic context requires it).
When sub-suppliers are negotiating and directly involved in pricing with producers, this requirement will also apply at their level.
The scope of this indicator is the price paid by the OaS to the producers (not the prices paid along the supply chain).
This indicator is applicable to the relationship between OaS and producers, when they're both involved in the scope of the assessment. If the OaS is the producer in the supply chain, this indicator is not applicable.
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DOCUMENTATION
procedure describing the period of price calculation's revision
former price calculations available
current price calculations and items on potential increase in the cost of living
current price calculations and items on promotion of Ethical BioTrade initiatives and implementation of positive actions
INTERVIEWS:
with OaS:
about procedure on price calculation revision
about price calculation revision (period and items)
with producers/collectors:
about price calculation revision (period and items) and its effectiveness
Scoring guidance
0 - There is no procedure nor implementation of a periodic price review
1 - Price is reviewed according to market price fluctuation, but without considering changes in cost of living nor associated costs for improvements measures based on this standard
2 - Price calculation and definition is periodically reviewed reflecting the changes in cost of living (consumer price index for instance) and other measurable tools, but not considering progressive improvement measures required throughout this standard
3 - Price calculation is periodically reviewed considering changes in cost of living (see guidance) and also associated costs promoting the Ethical BioTrade standard (implementation of actions required throughout this standard)
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Importance
Critical
ApplicabilityCultivation & wild collectionOaSSub-suppliers |