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Latest features What is Fair Trade?

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Date Published:
25/02/2008

February 24th marked the start of Fairtrade Fortnight 2008. The term 'Fairtrade' and the Fairtrade logo are now increasingly familiar on supermarket shelves and in cafés, but do we really know what they mean? Charlie Cottrell examines some of the facts and figures.

What is Fair Trade?

The Fairtrade logo is the most recognisable symbol of products independently certified to meet international fair-trade standards. These guidelines act as a guarantee that growers and farmers of listed products are given a better deal when trading their produce.

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The Fairtrade Foundation is the UK member of Fairtrade Labelling Organisations International (FLO). The FLO determines a minimum price that a buyer of Fairtrade products must pay the producer to cover the cost of sustainable production.

The Fairtrade mark shows a product has been certified to give a better deal to the producers involved. However, it does not endorse the company’s entire business practice, meaning a company can produce both 'fairly' and 'unfairly' traded products.

In 1994 the first three products carrying the Fairtrade logo hit the UK shop shelves. Today there are more than 3000 certified products including coffee, chocolate, avocados, fruit juice and wine.

In addition to this, is the fair-trade premium - money paid on top of the Fairtrade minimum price that's invested in social, environmental and economic developmental projects. Use of the premium is decided upon democratically by a committee of producers within the organisation or a group of workers on a plantation.

Fairtrade figures

The growth of Fairtrade has been rapid. According to Fairtrade statistics one in every five bananas soled in UK supermarkets is now Fairtrade. A nationwide shift to fair-trade coffee in retailers such as Marks and Spencer, AMT coffee and EAT cafés means the British public drinks more than eight million Fairtrade hot drinks every day.

The Fairtrade Foundation estimates more than seven million farmers, farm workers and their families in Africa, Asia and Latin America now benefit from fairly traded products, and more than £400m was spent on Fairtrade products in the UK in 2007.

The opposition

However, the merits and success of the Fairtrade movement have not gone unquestioned.

A study released by the Adam Smith Institute argues that, for all its good intentions, Fairtrade is not fair.

According to the report, by guaranteeing certified farmers a minimum price for their goods, Fairtrade is distorting local markets and doing little to aid economic development.

In fact the foundation argues that while Fairtrade is helpful to some in the short term, by requiring farmers to form co-operatives, it reduces the opportunities for labourers to get full-time, permanent jobs, and in some cases can foster corruption.

The Fairtrade debate is a complex and volatile one with both sides equally passionate about the rights and wrongs of trade guarantees.

So who get's your vote? Do you see the fairness in Fairtrade and shop accordingly? Or do you find the movement misguided and misplaced for all it's good intentions.

Have your say in the forum

For more information on fair-trade, visit the Fairtrade Foundation

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