Fair Payment and Highly Valuable Cents

Customers rejoice when coffee prices drop, however that can mean hardships and loss of income for the coffee producers.Concerned about the falling prices trend and weather conditions, Brazilian coffee producers wanted to sell. Alas, buyers had little interest in the harvest of the previous year. 8 % of Brazil’s harvest from the previous year remained unsold.

The Impact of Fairtrade Certificate: What Do We Actually Buy?

Rahel Mhabuka, a tea plantation worker at Kibena, Tanzania, describes how her children can now attend school – because Lihogosa elementary school was built with the funds of Fair Trade premium. Approximately 170 children study at the school. Before the school was built, children had to walk 10 km to attend classes.

We support fair and not free trade

Free market, economic growth and trade liberalisation are among the corner stones of modern development. This is taught to us at school and this is what governments state. However, increasingly often we also hear appeals that we could promote welfare by implementing fair trade principles which, inter alia, call to eliminate forced and children labour, to introduce environment requirements and fair payment for completed work, instead of developing the free market. 

Excessive wealth should be fought instead of poverty

In 2015 the UN adopted new Sustainable Development Agenda. The first of these goals provides for “End poverty in all its forms everywhere”. Elimination of poverty has been discussed since long ago and a lot has been done in order to help the poorest people in the world to survive.

Fair trade, its criticism and possibilities

The idea of fair trade is attractive from the human point of view and deserves support. We essentially agree that fair remuneration should be paid to producers in the third world countries who are facing poverty under the current market economy and global trade conditions, which, in turn, promotes breaches of fundamental human rights in agriculture and other production sectors.

Child labour: culture or despair?

No matter whether child labour continues to be used for cultural or economic reasons, it can only be fought against when conscious consumption and legislation work together. Child labour is mistaken for work done by a child. In the article, we will discuss the work that children are forced to do, that they do instead of attending school or playing, and that enables the producers to keep prices low. 

FT benefits for coffee producers

Smallholder farmers producing for Fair Trade market outlets are usually considered to benefit from better prices and stable market outlets. However, different studies provide opposing results.

Why FT might be not a magic bullet for producers?

Sometimes Fair trade is blamed for not being efficient and effective in solving financial problems of the farmers in the South. Hence, it is important to see the whole situation in one picture. B.R. Wilson (2010) explored the case of Nicaragua.

Cotton and Fair Trade

In the recent years an increasing number of consumers are becoming more ethically aware about the social and sustainability issues of the clothing industry. Where has the piece of clothing been produced? Have the workers and growers in the whole supply chain received fair payment? 

Does Fair trade taste better?

Many consumers consider a variety of ethical issues in product choice and preference. Moreover, labels play here a crucial role. The labelling effect is shown in consumers’ tendencies to hold a priori beliefs and expectancies that lead them to judge on products they choose.

Which certification system would be reliable and attractive?

What should the certification system be like that would guarantee equal treatment and sufficient livelihood to farmers, and would simultaneously be reliable and attractive for the consumers? Certified products are constantly being added to the range of products available in shops, whereas certification is facing new challenges. 

Clothing labelling systems

Fashion has always been about self-expression. A newer phenomenon is the globalisation of style through brands and labels. Most of the clothing we are now consuming comes from China, Turkey, India, Bangladesh and Tunisia — most of the countries where labour costs are low and workers have few rights.

Do reputational concerns influence intentions to purchase Fair trade products?

Research shows that consumers are willing to pay more for Fair Trade products, even knowing that this is only an altruistic support of producers, rather than a specific benefit for consumer himself. However, this leads to the assumption that the socially responsible choice of products may be affected by the surrounding people and the potential opinion about us.

Fair Trade labels

Lately consumers are becoming increasingly aware of the existance of various eco-labeling schemes. Eco-labels serve the purpouse of ensuring that certain principles have been followed in the production and distribution of the product, i.e. the product has been produced ecologically, without using chemicals or destroying natural habitats.

Do consumers tend to choose and pay for Fair Trade products?

Consumer awareness is growing and is increasingly focused on environmental and social aspects of food production and supply. In order to inform consumers about the added value (social and environmental) of the food they consume, commonly a variety of labels is used. Based on the information behind these labels, consumers can make more informed choices. 

Initiative - FAIRTRADE Sourcing Programs

In order to foster Fairtrade products Fairtrade International launched a new initiative – Fairtrade Sourcing Programs – in 2014.