3.2.3: Where is Value Distributed?

What Creates Value (Liberal)

Much of the functional and symbolic value is created by the manufacturer

• Means that the bean itself has little bearing on what customer wants - creates very little value, as measured by how much someone is willing to pay for it

• but, many people are willing to pay for chocolate, plus specific candy bars with third party labels

Solutions to increase value of bean from Liberal Perspective

To create a Terroir

Selling the place in which the commodity is produced, enforced through trademarks.

What Creates Value (Marxist)

Labour is what creates value.

• Value is not a market based expression of social worth (the price of the product)

  • It is the Socially Necessary labour time required to produce the commodity

  • Often in capitalism commodities are produced at less than this value as firms seek to cost minimize

Socially Necessary Labour Time

The time required to produce a commodity.

Solutions to increase value of bean from Marxist Perspective

What is needed to improve the lot of producers is to improve their class power

• Better land distribution, unions on plantations

• Need to increase the price that the producer gets

  • a lot of these producers are on very small lands