Fair Trade
Fair trade gives small farmers
- a stable and guaranteed fair price - no longer selling below the cost of production
- the ability to feed and educate their families
- environmentally-responsible production that does not risk their health
- a stronger position in world markets.
Unfair trade
- small farmers are the first to feel the pinch when world commodity prices fall
- existing trade rules favour rich countries and penalise poor ones
- undermines food security because cash commodity crops are encouraged
Questions
A dilemma: organic or fair trade bananas?
Organic bananas mean no toxic chemicals – that’s good for the health of the agricultural workers and their environment. But organic does not guarantee the farmers got a fair wage.
Fair trade does. I am pleased my bananas are not exploiting poverty. But fair trade does not guarantee they are chemical-free. And I’d rather not eat a pesticide-sprayed banana. Fair trade or organic - which would you buy?
Fair trade makes a brand look good – is that fair?
Notorious Nestlé sell a Fairtrade coffee, Partners Blend. This means 200 farmers in El Salvador will get a fair price. That leaves the remaining Nestlé suppliers (over 3 million farmers) who are still losing out. The Fairtrade mark on one brand could confuse the shopper into thinking the rest of Nestle’s products are fairly traded.
On the other hand, Nestle’s Fairtrade mark sends a powerful message about the importance of fair trade. According to The Fairtrade Foundation, sales are growing by 46 per cent a year - the market is now worth about £300 million a year. Does it matter if a company exploits fair trade to look good – as long as it does good?
What about fair trade for UK farmers?
UK farmers often sell their produce to supermarkets for less than the price of production. Should we have fair trade agreements for UK farmers too?