It's about better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world. Fairtrade addresses the injustices of conventional trade, which traditionally discriminates against the poorest, weakest producers. It's an organized social movement which advocates the payment of a higher price to producers as well as social and environmental standards.*
Sounds idealistic? It probably is for the critics who see it as unnecessary subsidy that just doesn't fit in our economy and even (according to Adam Smith Institute as stated on Wikipedia) as a marketing ploy that impedes economic growth. On the other side, many people are questioning it because it doesn't result in any radical changes of world economy and it doesn't help to cure world poverty. But the facts are more encouraging. According to FLO the sales of Fairtrade certified products have been growing on an average of almost 40% per year in the last five years. In 2008, Fairtrade certified sales amounted to approximately €2.9 billion worldwide, a 22% year-to-year increase. More than 1 million producers and workers in 58 developing countries now benefit from global Fairtrade sales. FLO estimates that 5 million people directly benefit from Fairtrade. Similar trends are shown in figures presented by UK's Fairtrade Foundation.
Sounds convincing, but ... although I buy a lot of fairtrade products since I buy organic and many organic producers are also committed to fairtrade, I'm not a convinced advocate of this idea (of course I appreciate it). The question raised is whether fairtrade only helps some people to live better or does it significantly contribute to changing the economic landscape which we live in? The purpose is definitely good if some people (and 5 million is more than just "some" ...) have better lives but its mission should result in impact on global economy. It's not enough for me as a fairtrade buyer just to feel better for helping some groups of producers and to express my values while at the same time knowing that I can't change the world economy. What sense does it make in the long run? It's just fixing current problems without solving the actual cause. And there's another issue that fairtrade is not a solution.
For European consumer all fairtrade goods and products are imported or made of imported ingredients from other continents (Africa, Asia) which is not the right practice for the future. We'll have to go beyond globalism buying local (at least food and other basic goods) which will probably be the best way or the only chance to survive. And of course , bringing fairtrade principles from undeveloped world to our local trade relationships.
Anyway, at this moment, if I choose between global products, I prefer faitrade. And if Julia Roberts does it as well, something will change globally, right ;)?
And if Starbucks provides fairtrade coffee along with financing Ethiopian farmers there is some effect on global economy, right? Or is it just sustaining it while making it feel better?
Sources:
- Fairtrade Labelling Organizations International
- Fair trade on Wikipedia
- Fairtrade Foundation UK
- Oxfam, international confederation
- further reading
* According to international Fairtrade Labelling Organizations
fair trade is an alternative approach to conventional trade and is based on a partnership between producers and consumers. Fairtrade offers producers a better deal and improved terms of trade. This allows them the opportunity to improve their lives and plan for their future. Fairtrade offers consumers a powerful way to reduce poverty through their every day shopping. It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate, flowers and gold.
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5 comment(s):
Buying fair trade will make a difference. And Julia Roberts can't hurt the cause, right? :)
I wanted to let any one reading your blog from Canada know that Cadbury Dairy Milk is now Fair Trade Certified in Canada.
Additionally, Canadians have the chance to win a trip to Ghana to see firsthand what life is like in a fair trade cocoa farm and community.
You can follow our Fair Trade activity on Facebook http://www.facebook.com/CadburyDairyMilkCanada and Twitter @dairymilkcanada.
Thanks for talking about Fair trade,
Michelle
Dear Michelle, I much appreciate your feedback! Thank you for info, it's good to hear. I've already became your fan and your follower :)
In the future post I will also write about fairtrade clothes so keep on reading.
Petra
Fairtrade is about individual farmers and the impact it has on those particular farmers.
But often we don't spread the word that Fairtrade is actual a very real alternative to how conventional trade works. Central to fairtrade is the direct trading relationship. It means that prices arent fixed via London or NY markets & hence partly influenced by future markets & hedging etc. With the panic of wheat, it has been reported that actually stock wills be fine despite Russia's fires & loss of crops. But its the markets that dipped in & saw an opportunity and so prices have gone haywire.
If I was a farmer I think i would prefer that direct relationship with the buyer with a transparent system for setting pricing rather than being held to ransom by London & NY.
Re: global / local - sadly we as consumers concerned with our food miles & emissions etc are demanding change without facts. The fact finders who calculate the entire lifecycle of a product arent that developed. There aren't many entire supply chains assessments on emissions to have been researched from cradle to grave. So as consumers we are left in the dark. We are left to judge for ourselves without the backing of all the facts. Hopefully this footprint anaylsis will develop in the future but I guess at this point we have to follow our values and make sure we are happy with our decisions. Whether its a local system or fairtrade both systems are endeavouring to make our traditional system more rational and fair. So for that we shouldn't get put off and continue to support what we believe in.
Dear Ethics Girls, I really appreciate that you left your feedback.
As I understand I am not alone with my doubts and sympathies but as you suggest we have to stick to our beliefs, keep on striving and keep in mind the benefits and good work that fairtrade does to people involved in production as well as what it means to global trade system. As I said I support fairtrade and if buying global, I buy (as much as possible and it means almost all) products made under fair trade conditions. Anyway I rely primarily to local production (especially buying food) and in most cases I deal directly with local producer. Although not officially fairtrade labeled this is much closer to fair trade standards than buying in hypermarkets, right?
Thank you for your thoughts and additional information. I am pleased to follow your site - keep on the good work.
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