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Monday, 25 February 2008

Comments

Angry African

Fairtrade as the perfect name. And I like them - and I consume their products. But I have a few issues with them. They are not as perfect as their name implies. For instance, they do not work with the poorest of the poor, but only those organized in cooperatives. And farmers do not get the Fairtrade price, only a part of it and the rest goes to the cooperative. Don’t forget, farmers pay Fairtrade to be certified. More on my blog. But the quicker they come clean, the quicker we can address their reason for existence – making the world a better place. More on My Beef with Fairtrade at http://angryafrican.wordpress.com/2008/02/21/my-beef-with-fairtrade/

Andy

Fairtrade is the biggest con around and the sooner people wise up to it the better. Fairtrade's policy is a joke and if you ask farmers how if they are benefitting from Fairtrade you may well get a different response. The problem is that Fairtrade now have a monopoly on ethical buying. If any new company comes along which offers a farmer a better deal they will go broke since they dont have Fairtrade's political clout ,subsidies or other economic benefits.

Fairtrade only deals with collectives and small farms and only buy the raw coffee. Hence farms which want to package the coffee and sell it direct miss out. If farms want to expand they miss out. Hence farms remain continually poor and Fairtrade remain in business.

Maybe the author should do an indepth analysis of Fairtrade before giving it free publicity. This paper is meant to be Independent after all. Why don't you do some serious digging first before you come to this conclusion. Why sont you spend a summer working in a farm and learn about teh difficulties they face before you go on here giving the impression that Fairtrade is the saviour for all these farms....

Rose

OK Fairtrade isn't perfect, but then you have to be realistic - this isn't the best of all possible worlds and Fairtrade is doing a lot more than the open capitalist market which is grinding these countries under. Nobody is saying it's a saviour for everybody and everything, but you don't help by carping about it. You might as well say raising money for charity is wrong because it doesn't stop the abuses it goes towards preventing. Every bit helps.

Bill Linton

I don't know where 'Andy' is coming from, but his comments are singularly ill-informed.
"Fairtrade have a monopoly on ethical buying" - not so. There are many other ethical marks, of which the Soil Association is the most familiar (to me at least). They all have their niche, with different emphases, e.g. on organic, or labour rights. None of them have gone bust that I know of, nor is there any reason for them to.
"Fairtrade only deal with collectives and small farms" - largely true (though they do also deal with e.g. tea estates where the emphasis is on ensuring fair pay and conditions for the workforce) because that's where the poor producers are - on small farms.
"Farms that want to package the coffee and sell it miss out". What planet are you living on, Andy? That's not how coffee production works. But if it did I see no reason why a Fairtrade company shouldn't buy the packeted coffee.
"Maybe the author should do an indepth analysis of Fairtrade before giving it free publicity". Maybe you should too, before knocking it.

Ethics Girl

Nope, Fairtrade isn't a perfect system, or the solution to world poverty. It has its glitches and it isn't an open door for every "poor" person in the world to suddenly jump on the ladder towards self-sufficiency. It is just one way, to help some people. The purpose of this competition was to highlight their work, but while I'm waiting on a response from the Fairtrade Organisation to your criticisms, do have a look at Angry African's Beef with Fairtrade piece. There are heaps of labelling organisations around designed to help consumers know what they are buying, whether that means what is in the product or where it has come from. Sometimes this can make things more confusing,and one label cannot tell you everything. You could do worse than doing a little digging yourself and entering the competition with whatever you find out.

Ethics Girl

For all your coffee lovers/activists out there, there is a great film on the fairtrade concerns of one coffee co-operative on More4 tonight at 10pm - Black Gold. You can read my earlier blog post on it here - http://blogs.independent.co.uk/independent/2007/10/a-screening-of-.html

Conor

Fair trade businesses are all very well and good but fundamentally limited as an economic model for development. The enlightened few deign to select only the packets bearing the stamp of approval. Paying a surcharge that goes to the producers. Wow! Ground breaking!
Big Business exploits the producers because that’s what the western economic model of profit maximisation demands and as the companies are based in the developed world that’s where the money goes. Nobel Prize winner, Muhammad Yunus, founder of the Grameen Bank in Bangladesh has been working in social businesses and refining his social business model for decades. The Grameen Bank pioneered the concept of ‘micro lending’ and as an aside has a majority female customer base. Mr Yunus has been a pioneer in the field of ‘social business’ and argues for a social business model. His model is, simplified, to replace the profit maximising goal of the business with a social target. For instance, Danone in conjunction with Grameen have been building yogurt factories in Bangladesh where the new company has been set up to provide affordable yogurt for children to provide dietary elements they were missing. The goal of the new company isn’t to make western firms money but to improve the diet of as many children as possible. The company of course also fairly pays suppliers.
Think beyond loveable coffee growers in getting a ‘fair’ price, that’s only a start. Think social business model.

Arrick Wilkinson

I am sure we all know organisations that are not perfect. But FairTrade is operating its model very successfully - not for it, but for its producers. And I think, even if you were to discount everything that it has done for African or South American etc communities, it still has done an amazing job of raising some awareness in our materialistic society about some of the inequalities in the world. I think it is unfair to criticise it blindly; I have seen first hand some of the problems coffee and tea growers in Kenya have had.
I agree with Conor also about the micro-lending. But, like Fairtrade, I don't think this is all the solution either. We need many initiatives, in all sorts of areas to even begin to get a fairer world.

Chocoholix

Conor, I couldn't agree with you more about Grameen and the idea of a social business, but this is not incompatible with Fairtrade, in fact the two can and do go hand in hand. Think about the fact that cocoa growers are the major shareholders in Divine Chocolate. Nut growers own 42% of the shares in Liberation Nuts. Equal Exchange rooibos tea is not just grown by smallholders in South Africa, it is also packed and exported by a business that operates as a social enterprise model. Many Fairtrade co-ops are also establishing micro-loan facilities for local people that very much follow the ethic of the Grameen bank model. I met coffee growers working with Fairtrade in El Salvador a couple of years ago - they were using their premiums from Fairtrade to hold back some of their coffee from export, and were developing their own roasting and packing facility to sell their coffee as a finished product into the consumer sector in their own country. What Fairtrade was stimulating was the confidence and the injection of resources for social entrepreneurism to flourish.

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