As would be expected, supporters of Fair Trade have responded to the Economist article “Voting with your trolley” which Ian posted. Samples from their responses:
On information:
There is also a problem of education and market awareness. A journalist in London may be able to find out the prices of commodities around the world at the click of a mouse, and check the relative supply and demand of various products to decide which would make the most prudent investment for a farmer in subSaharan Africa. Most farmers in developing countries do not have access to such information.
Fairtrade addresses all these issues not just by offering a guaranteed price, but by offering a long term trading relationship and training in production methods, marketing and diversification. In other words the guaranteed price Fairtrade farmers receive for their crops is only a small part of the benefits that Fairtrade brings. (Mark Richardson, Wales Fairtrade Forum)
Are farmers in India and Chile in the same position? Maybe they can access the same price information from a local cybercafe, or in the co-ops offices? We will get a chance to talk to our partners and ask producers about what information they do get and what they would like. How good is the Fairtrade system, how good is the Indian Coffee Board at passing along information to producers? Can technology help transfer this information?
On price:
Claims that consumers are misled into paying extra for organic or Fairtrade products of which only a small proportion is passed back to the producers ignore the reality that such differentials are rapidly disappearing. These initiatives are moving further into the mainstream: yesterday Sainsbury’s announced that all their bananas will be certified to Fairtrade standards in the coming months. And the cost to consumers of this move, that will benefit impoverished farming communities by over £4m annually? Actually, nothing. Sainsbury’s Fairtrade will cost the same as their ordinary bananas. This follows similar moves by Marks & Spencer on their tea and coffee ranges, with Fairtrade adopted as the standard that their customers expect at no extra cost. (Ian Bretman, Deputy Director, Fairtrade Foundation)
And:
Fairtrade is not about aid. Of course it’s more efficient to send £1 to a farmer in Ethiopia than to buy a jar of Fairtrade coffee if your only goal is to get an extra £1 in their pocket. But Fairtrade is about trade. (Mark Richardson, Wales Fairtrade Forum)
(For full texts, see the WFTF site.)
So yes, it is about trade, and if consumers understand that then they will not expect a full £1 to go to the producers. But why does Fairtrade demand better information on value chains only for producers? Why not also for consumers? Surely, if Fairtrade wants to raise awareness and achieve wider change then one way is to empower consumers by providing more information. And by the way, better-informed consumers will be in a better position to judge the claims of critics of Fairtrade such as those published in The Economist.
Are you a producer or consumer of Fairtrade products? What information would you like? Tell us what YOU think…
