Fairtrade Refutes Charges of Its Affiliate Farmers No Better

The Fairtrade Foundation has hit back at the criticism of its products had failed to lift the farmers out of poverty by a think-tank stating that such claims were baseless. The Institute of Economic Affairs in its latest report “Fairtrade without the Froth” argued that though Fairtrade made stupendous gains through ‘charity’ strategy those spoils never uplifted the poor farmers’ lives.

The controversial report indicates less than 25 percent of the price premium paid by shoppers for Fairtrade’s ‘ethical food’, such as coffee and chocolate, reaches the farmer. The 130-page report further says “Fairtrade requirements [on farmers] may well reflect the subjective views of western consumers and not the real needs of poor producers.”

In response, the Fairtrade Foundation said “It is wrong to suggest Fairtrade does not offer a long-term strategy for development.” Besides arrayed evidence claiming - “In Mali, Fairtrade cotton farmers are earning 50 percent more than conventional farmers. Some 95 percent of the children of Mali's Fairtrade organic farmers go to school because farming communities receive more money. This is more than double the national average in the fourth most deprived nation on earth.”

Fairtrade also countered the argument of collecting high affiliate or certification fee of £1,570 from the farmers by saying the fee covered a farming co-op of 50 growers, which amounts to an average of just over £30 each. Barbara Crowther, policy director of the Fairtrade Foundation said ‘Many studies have been published by independent academics which demonstrate that Fairtrade is making a real difference to people’s lives.’

By roping in bigger players such as Cadbury Dairy Milk, Green & Black’s and Ben & Jerry’s, UK sales of Fairtrade products rose 12 percent last year to reach £800mn. The Foundation has also bagged a contract from Starbucks in the UK to only use Fairtrade coffee for its espresso-based drinks.

By Jose Roy