A Look Into FairTrade

What is Fairtrade, how does it strive to make a difference and is it effective in so doing?

          Yesterday we had an interesting lecture that taught me more about Fairtrade.  Fairtrade is an organized social movement to help ensure that the farmers and workers at the bottom of the trade chain get a fair share of the benefits of trade.  Farmers can choose to sell on Fairtrade terms, which in turn provide them with a better deal, and improved terms of trade.  It allows the consumers to choose a way to reduce poverty while they buy products. 

Once a product carries the Fairtrade mark it means that both the producers and traders have met the Fairtrade standards.  I thought the presenter did a good job at explaining how there is a minimum price of trade that has to be met, even if the market price for the item falls bellow that price.  This guarantees that producers will still receive prices that cover their average costs of sustainable production, making sure they would never lose money from low trading prices.  This makes a huge difference to the farmers and gives them a safeguard against fluctuations in market pricing. 

Another important way that Fairtrade makes a difference in the lives of the producers is through an additional Fairtrade Premium.  This is paid on top of the trading price and is used to invest in projects that enhance social, economic and environmental development in the community.  During the lecture we learned about some of the ways that premiums were used to benefit the producers and the community they live in.  Projects included creating a basketball court for the community’s youth, which provided a way to have fun that did not include the use alcohol or drugs, and building a kindergarten center that allowed mothers to have a day care system allowing them to continue making income for their families.   

The presenter told us some of the critiques of the Fairtrade system.  From what she said, which included some critiques of not being able to strictly control the use of child labor on some of the farms, I believe that the negatives do not outweigh the positives of Fairtrade.  I think Fairtrade is effective at changing the lives of smallholder farmers.    

Relevant Websites:

1)   http://www.fairtrade.net/aims-of-fairtrade-standards.html

2)   http://en.wikipedia.org/wiki/Fair_trade

3)   http://www.fairtradeusa.org/

4)   http://www.wfto.com/

5)   http://www.fairtrade.org.uk/

6)   http://fairtrade-maerket.dk/

Image Citations:

1)   http://www.foodnavigator.com/Market-Trends/Fairtrade-demand-spurs-rapid-increase-in-supply

2) http://www1.uwe.ac.uk/aboutus/visionandmission/sustainability/fairtrade/whyuweembracesfairtrade.aspx

3)   http://www.fairtradelabel.org.za/whatis/fairtrade-in-the-world.6.html