Fairtrade - your questions answered

Fairtrade Foundation © Fairtrade Foundation 2005

The purpose behind the Fairtrade Mark is to strengthen the economic position of disadvantaged producers. Millions of landless labourers and small farmers are denied what should be their right: To earn enough to feed their families, send their children to school and that little extra to invest in sustainable development.

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Clearly, the advantages of international trade are not visible to all people in the world. For small farmers, access to markets and price information is difficult and, as a result, many small farmers become increasingly dependent on middlemen. In bad times, many lose their only asset: their land and, thus, their livelihoods.

Similarly, many plantation workers do not see the benefits of increasing world trade. Many endure low pay, an unsafe working environment and poor living conditions. Too often they lack the freedom to join a trade union to defend their rights and the opportunity to participate in decisions that affect their lives on the plantation.

What is Fairtrade?

Fairtrade is about better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world. By requiring companies to pay above market prices, Fairtrade addresses the injustices of conventional trade, which traditionally discriminates against the poorest, weakest producers. It enables them to improve their lot and have more control over their lives.

What is the Fairtrade Mark?

The Fairtrade Mark is an independent consumer label which appears on UK products as a guarantee that they have given their producers a better deal. The Mark is awarded by the Fairtrade Foundation, a registered charity set up by CAFOD, Christian Aid, Oxfam, Traidcraft Exchange and the World Development Movement. It shares internationally recognised Fairtrade standards with initiatives in 18 other countries, working together as Fairtrade Labelling Organisations International (FLO).

What does Fairtrade mean for third world producers?

For 500,000 workers and farmers in the developing world, Fairtrade means better terms of trade and decent production conditions. The Fairtrade Foundation, with its partners, maintains these standards by regularly inspecting third world suppliers, and checking contracts and trade terms.

What products are available from GoodnessDirect?

We stock over 80 products with the Fairtrade Mark, including Bananas, cocoa, Chocolate, drinking chocolate, honey, coffee and tea. to see the full list see the blue panel at the top.

Why are there not more types of Fairtrade Mark products?

It takes much time and money to develop criteria to ensure that new Fairtrade products really will benefit producers. The initial focus of Fairtrade was on agricultural commodities, such as coffee and tea, which have the most widespread impact on the livelihoods of small producers in the developing world. More products are following year by year – we hope you will see Fairtrade rice, cotton and a variety of Fairtrade fruit in the shops over the next couple of years.

My existing tea/coffee supplier assures me that they pay a fair price and treat their suppliers decently. Isn’t this as good as Fairtrade?

The purpose of Fairtrade is not merely to avoid exploitation of suppliers but to help make a real improvement in people’s lives. Fairtrade is based on a clear set of internationally-agreed criteria, which are independently assessed and monitored, and the whole system is open and transparent. The Fairtrade Mark is the only independent consumer guarantee of fair trade. If a company is claiming that it meets these standards, ask them whether they are prepared to subject them to the independent scrutiny and monitoring of the Fairtrade Mark.

What is the difference between fair trade and ethical trading?

Ethical trading means companies are involved in a process of trying to ensure that the basic labour rights of the employees of their third world suppliers are respected. The Fairtrade Mark, which applies to products rather than companies, aims to give disadvantaged small producers more control over their own lives. It addresses the injustice of low prices by guaranteeing that producers receive fair terms of trade and fair prices – however unfair the conventional market is.

Is Fairtrade a subsidy that encourages farmers to grow more coffee and therefore contribute to global oversupply and low prices?

Absolutely not. Subsidies are government payments which lower the price of goods with the intention of encouraging their production and/or consumption or of making them more competitive than imported goods. The cost of these subsidies is borne by taxpayers or consumers.

Fairtrade, on the other hand, is a voluntary model of trade that brings consumers and companies together to offer small-scale farmers a price for their coffee that covers the cost of production and provides a sustainable livelihood so that they can send their kids to school and pay their bills.

Oversupply is usually a result of coffee growers increasing production in the brief periods when prices are high. However, it is clear that the recent surge in global coffee production, and consequent low prices, is largely a result of government agricultural export policies in Vietnam and large-scale farm expansion in Brazil. Paradoxically, in an attempt to compensate for lower prices, many small-scale farmers dependent on coffee will increase output at the expense of quality.

But our experience suggests that paying a higher Fairtrade price need not increase production; rather, it gives farmers other options – to invest in quality improvements and gain access to speciality markets or diversify into other crops to reduce their dependence on coffee.

Are there organic Fairtrade products?

There is a wide choice of organic coffee, tea, honey, cocoa and chocolate products carrying the Fairtrade Mark and the range is increasing steadily.

What about Genetically Modified Organisms (GMOs)?

At the moment there are no GMO crops in the categories covered by the Fairtrade Mark* so all Fairtrade products are GMO-free. Should GMOs become available in these categories the Foundation and its partners would consult widely with producers and take account of any public concern on this issue before allowing their use – the key factor for Fairtrade organisations is whether such developments would help producers in developing countries.

Why do some products claim to be fair trade but not carry the Mark?

Some companies make their own ‘fair trade’ claims without having the independent scrutiny of the Fairtrade Mark, or the interests of producers at heart. If you are shopping and see tea, coffee, bananas or cocoa products without the Mark, there is no guarantee that they give producers a fair deal.