The True Price of Jeans

What is the true price of a pair of jeans?

On average the true price is 33 euros above the retail price.

Using the true price method, Impact Institute and ABN AMRO‘s report the The Hidden Costs of Jeans is being featured by Dutch national news outlets including NU.nl, de Telegraaf, RTLZ and on radio 3.

How can this gap be closed? The cotton must be produced more efficiently and forced labor must be stopped. At the same time, workers need to earn living wages. Finally, circularity should be improved by reusing the denim from jeans more often.

Interested in learning more? Join us on 4 June for The True Price of Food Event we are hosting in collaboration with Pakhuis de Zwijger and Circl. This event is the first of three that will explore how true pricing can be applied to various sectors. In September, the second event will explore The True Price of Fashion.

At True Price, we want to raise consumers’ awareness of the background of products of good. Typically, the retail price does not consider the external effect the production of goods has on society and environment. For that reason, True Price wants to make things transparent to calculate the real cost – or the true price– of products.

4 juni 2019: De echte prijs van voedsel

De echte prijs van voedsel

Wie betaalt en wat betekent dit voor de voedselindustrie en de consument?

Is een kilo bananen voor 99 cent te goedkoop, of een brood van 3 euro te duur? Bij de productie en consumptie van voedsel zijn er veel verborgen kosten, zoals onderbetaling van personeel, energie- en waterverbruik, slechte arbeidsomstandigheden of klimaatverandering door broeikasgassen uit kunstmest. Steeds meer bedrijven, consumenten, maatschappelijke organisaties en overheden willen dat de vervuiler betaalt. Zo vragen meer dan 100 CEO’s voor een (hogere) prijs op CO2-uitstoot. Tegelijkertijd is de heersende opinie dat we de rekening niet neer kunnen leggen bij mensen met een laag inkomen of boeren aan het begin van de keten. Een reis door het productieproces zorgt voor inzicht in de keten en negatieve gevolgen die vervolgens worden omgezet in financiële cijfers, de true price.

Moet de echte prijs transparant gemaakt worden zodat bedrijf en consument zelf duurzamere keuzes kunnen maken, of moet de echte prijs gelijk worden afgerekend? Met experts gaan we in gesprek over dit belangrijke vraagstuk, de impact op de voedselketen en oplossingen!

GRATIS, EXTERN RESERVEREN

dinsdag 4 juni, 16.00
CIRCL, Amsterdam

In samenwerking met

MET IN DIT PROGRAMMA ONDER ANDEREN

Michel Scholte
Directeur en co-founder True Price & Impact Institute
Willy Baltussen
Onderzoeker Dienst Landbouwkundig Onderzoek, Wageningen University & Research
Jos Huijbregts
Directeur bij Bakker van Vessem

 

Maarten Rijninks
Directeur FairBites en Fairconnect en mede-eigenaar van biologische supermarkt De Aanzet

New milestone in moving towards True Price open standards!

Imagine a world where every product is priced for its true price, a price which considers social and environmental costs too, such as underpayment of workers and air pollution. Last month, this world became one step closer as True Price took an important step in its mission to enable everyone to know the true price of a product. Together with our friends at Wageningen University and Bionext we kicked-off a program on True and Fair Pricing to make true pricing methodology available to everyone as an open standard.

So what does this actually mean? This means that soon for example bakeries, banks, farmers can use these open source standards to have better insights on the true price of their products, reduce their environmental impact and improve the conditions of their employees. And it help can you choose environmentally and socially sound products by seeing their true price.

In the coming years we will work closely with many organizations such as ABN AMRO, Rabobank and the EKO foundation to determine the true price of products, amongst others of potatoes and tomatoes.

Michel Scholte, Executive Director at True Price: “We’re extremely happy to be chosen by the Dutch government Top Sector to further develop and share our standards on true pricing. Only by working together and sharing our insights we can move quickly to a world where we enable everyone to know the true price of food!”

Want to know more about our work on true pricing ? Sign up for our newsletter!

 

* This project is financially supported by the Dutch Topsector Agri & Food. Within the Topsector, private industry, knowledge institutes and the government are working together on innovations for safe and healthy food for 9 billion people in a resilient world.

Sustainability of food

How does sustainability influence our food?

This was the subject of Sustainable Food Event 2018 in Gouda.

On National Sustainability Day Adrian de Groot Ruiz, Co-founder and Director of True Price, introduced the concept of true pricing at the Sustainable Food Event Gouda. This event was inspirational and informative evening that our responsibility to choose sustainable food.

True Price contributed to the evening by sharing concrete examples of how food prices do not reflect the cost our food has on society and the environment.

True Price wants to raise consumers’ awareness of the background of products and goods. Typically, the retail price does not consider the external effect the production of goods has on society and environment. For that reason, True Price wants to make things transparent to calculate the real cost – or the true price– of products.

You can learn more about the true price of products and follow our journey by connecting with us on LinkedIn and Facebook.

Read about the Sustainable Food Event Gouda and the Fairtrade Gemeente Gouda year-round initiatives here (in Dutch).

The True Cost of Cocoa – Tony’s Chocolonely Progress Report

True Price and Tony’s Chocolonely have a multi-year collaboration. Tony’s Chocolonely is a Dutch chocolate brand, known for its mission to make the global chocolate chain 100% slave-free. Since 2012, Tony’s Chocolonely has been buying cocoa beans directly from farmer cooperatives in Ivory Coast and Ghana. Furthermore, Tony’s Chocolonely wanted to understand the impacts of their cacao value chain compared to the sector. Therefore in 2013, True Price carried out an analysis for Tony’s Chocolonely in which the social and environmental costs of a conventional chocolate bar and a Tony’s Chocolonely chocolate bar were calculated.

In 2013, Tony’s performed 44% better than the sector cocoa. Now we have published an extensive report that tracks the performance of Tony’s Chocolonely. While the current true cocoa cost for both Tony’s Chocolonely and the sector benchmark show improvement since 2013, there is still work to be done to have lower true costs and more sustainable cocoa.

Tony’s Chocolonely cocoa is more sustainable than the average cocoa

True Price found that the true cost of cocoa for Tony’s Chocolonely farms in 2017 is €4.52 per kilogram. This is 54% lower than the true cost of the (weighted) average cocoa in Côte d’Ivoire and Ghana (true cost of €9.91) and is an 43% improvement compared to the Tony’s Chocolonely farms in 2013 (true cost of €7.93).

By quantifying the social costs in the cocoa value chain, such as underarming and child labor, Tony’s Chocolonely were able to adapt their price setting strategies to ensure that farmers make a living income. Tony’s Chocolonely performs better on the impacts underearning of smallholder farmers (that receive a Tony’s Chocolonely premium), child labor and forced labor (that Tony’s Chocolonely actively seeks to prevent). In addition, Tony’s Chocolonely’s farms have higher yields, which also helps to reduce the true costs per kilogram cocoa.

Tony’s Chocolonely has improved since 2013, but there are still external costs

While the results of this study show that real progress has been made over the years, external costs still remain. True Price’s work with Tony’s Chocolonely provides valuable insights into the opportunities for progress and improvement for the chocolate sector.

For further information check out our Tony’s case page or the full report.