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Is fair trade really fair?

Published on Dec 01, 2015

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PRESENTATION OUTLINE

Is fair trade really fair?

by Aneta Fodorová 

What is fair trade goods?

  • products from farmers who are JUSTLY compensated 
  • helping people to develop their community
  • helps in developing countries build sustainable bussinesses
  • NOT CHARITY! > helping people to use the free market
"With Fair Trade USA, the money you spend on day-to-day goods can improve an entire community’s day-to-day lives."

fAIR TRADE IN THE UNITED KINGDOM

  • 1.3BIL pounds spent on fair trade goods
  • world's biggest fair-trade market 
  • started 18 years ago 
  • more than 4500 product carrying the logo

founding idea

  • better prices
  • decent working conditions
  • local sustainability
  • fair terms of trade for the farmers in the developing countries 
  • (farmers who pay for a certificate are assured a minimum price)

Harbi guerrero morillo

gold mine 
'The whole town depends on mining – we need support'

Harbi Guerrero Morillo, 40, lives with his wife and one-year-old daughter in Colombia. For the past 14 years he has been running a mine, providing work for 30 workers. In his community, about 70 per cent of people are employed in mining-related activities and earn around £220 a month for their work. Almost 400 families benefit from the gold production. Mr Morillo's co-operative is in the process of becoming certified with Fairtrade and Fairmined, in order to become one of only a handful of mines to produce Fairtrade gold.

"We would take pride and show off our certified community because it would show that our gold is clean, exported and seen in a positive way. Sometimes the industry is frowned upon, and there are concerns that if mines don't comply with legislations, they will be closed down. Here, the whole town depends on mining – we need support. This certification could work as a road map for mining and it could open us up to how we could improve our communities and network with other miners. It is about legitimising my work – that is very important."

tomy mathew

farmer from Kerala, India 

what does institute of economic affairs say?

  • Other schemes are just as valuable
  • it cannot help the most disadvantaged farmers
  • it also disadvantages individual farmers
  • Are poor producers to pay for the labelling scheme? 

further more...

  • same promotion as other brands
  • FAIR TRADE is promoted at schools 
  • equals manipulation, not education
  • Rainforest Alliance of Bird Friendly 

Can we criticize ft?

  • anecdotes, no evidence
  • research: only 25% of extra prices goes to the farmers
  • answer: the price difference is often not visible 
  • (but how is it FREE as it is claimed by FT org?)

fAIR TRADE AND GOVERNMENT

  • state supporst and grants 
  • > we actually pay TWICE 

COFFEE AND ITS 4 REASONS

  • 1,40 dollars for 1 pound of coffee 
  • supposed to be higher than market price, but...
  • you pay 7-10 dollars for the same pound of coffee 
  • for 1 pound of coffee the farmer has to pay 10 cents 
This is like assuring an employee that she will be earning more than the $7.25 minimum wage entitles her to, and then only paying her $7.26 and a lollipop.

Read more: http://www.cracked.com/quick-fixes/4-reasons-why-fair-trade-coffee-scam/#ix...

it's just marketing...

so take off your pink glasses...

AND DO SOME READING BEFORE YOU SPEND 10 DOLLARS ON A POUND OF COFFEE...
Photo by tomylees