According to the FTF, Fair Trade Federation, fair trade is a system aiming for greater equity and partnership in international trading system by creating economic and social opprotunities for producers, developing fair relationships, building capacity, paying prompt and fair, supporting safe working conditions, ensuring children's' rights, cultivating environmental stewardship, and respecting cultural identity.
Or, as they would more simply say, 'fair trade looks to create tremendous, positive, and long-term impact for artisans and farmers while delivering great products to the public.'
Now, obviously there are thousands of fair trade products, but I am going to look at only one: Coffee.
What is fair trade coffee? With regards to coffee, similar to other products, fair trade means a fair partnership between consumers and producers. The biggest concern, according to Global Exchange, is to ensure that the coffee farmers get a fair price for their harvest in order to earn a decent wage.
How is fair trade coffee certified and monitored? Farmers must undergo a formal application process and become approved to sell to the Fair Trade market. Monitoring and certification systems are overseen by FLO, Fair Trade Labelling Organization, which has field supervisors for each region or country who annually visit all of the producer coops.
Who is FLO? FLO, or Fair Trade Labelling Organization, is an organization that was licensed in the US by Transfair USA. Not only do they oversee that of fair trade coffee, but also other commodities, such as bananas, cocoa, etc. Essentially, FLO works to ensure that farmers' products are being bought at a base price right above the cost of production.
Who Participates? The Fair Trade system involves 800,000 farmers organized into cooperatives and unions in 48 countries. Fair Trade helps farmers by providing basic necessities to their families.
Obviously this seems great. And by no means am I saying it is not, however, other options exist, often better than fair trade. Therefore, by not having the fair trade label, products are not always worse, and consumers should not automatically overlook it.
For example, Tim Clougherty, policy director of the Adam Smith Institute, a non-profit company supporting free-market and social policies, says 'Fairtrade purports to work within the market economy but its rise has been largely based on marketing subsidies and public-sector procurement."
This exemplifies one of the main issues with Fair Trade. Fair Trade has become a consumer trend. A movement that companies like Starbucks and Wal-Mart have hopped on. Notable is how Starbucks became involved with Fair Trade coffee. Starbucks announced their Fair Trade product the day before a national protest against them was to occur. Ironic? You decide.
For speciality coffee lovers supporting Fair Trade, sorry to break it to you, but fair trade is not speciality coffee. This issue is, Fair Trade works by mixing the coffee beans from every farmer in the coop. Not only does this have potential to damage the quality, but it also discourages improvement.
Rather than Fair Trade, something many companies participate in is called, Relationship Coffees. Relationship coffees, or direct trade, is something the public probably is not entirely aware of, and needs to become more informed about.
"Direct trade' is one of the most popular forms of business practiced by coffee companies who roast their own coffee. As the system implies, direct trade, simply means roasters directly buying their coffee bean from the farmer. Not only are these companies buying directly from them, but the process also requires intensive communication with the farmer. This system generally guarantees a better deal for the farmer, and for the consumer -- promising a better tasting coffee.
A video clip from Sustainable Harvest, a pioneer of Relationship Coffee
*** Again, I am not necessarily against Fair Trade. People just need to consider their options, and understand what is really occurring.***
Again for further reading (also, where I found most of my information)
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