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What are the benefits and limitations of Fair trade

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Alana Ticchi

on 22 April 2015

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Transcript of What are the benefits and limitations of Fair trade

What are the benefits and limitations of Fair trade
Alana Ticchi
Realised limitations
reliance on Fair Trade minimum pricing
Theoretical limitations
Signs of success?
Creates awareness and concern - "poverty and the truth about unequal exchange at the forefront of the global public scene" - Sylla 2014
Fairtrade Mark recognised by more than 70% of adults in the UK
Success in terms of sales of products - €830 million in 2004, €4.9 billion in 2011.
Minimum price benefits
Real benefits
ripple benefits
investment in the community
For Images:
Fair trade logo: fairtrade.com.au
100% Fair trade logo: greenliving.lovetoknow.com
Coffee beans: 3blmedia.com
Women picking tea leaves: galleryhip.com
Rainforest alliance symbol: www.rainforest-alliance.org/about/marks/rainforest-alliance-certified-seal
What is Fair Trade?
Dutch development organisation Solidaridad
Coffee from Mexico to the Netherlands.
"Fair trade is a trading partnership, based on dialogue, transperancy, and respect, that seeks greater equity in internatonal trade. It contributes to sustainable development by offering better trading conditions to, and securing rights of, marginalized producers and workers - especially in the South.
Charter of Fair Trade Principles
Ruben, R. 2008,
Impact of Fair Trade
, Wageningen Academic Publishers, Wageningen, Netherlands, vol. 2.
Sylla, N. S. 2014,
The Fair Trade Scandal: Marketing poverty to benefit the rich,
Pluto Press, London.
Fairtrade International 2011, Fairtrade Labelling Organizations International, viewed on 18 April 2015.
Lamb, H. 2010, 'The Impact of Fairtrade', ed. Bowes, J.,
The Fair Trade Revolution
, Pluto Press, London.
Le Mare, A. 2008,
The Impact of Fair Trade on Social and Economic Development: A Review of the Literature
, Geography Compass, vol. 2, no. 6, pp. 1922-1942.
Humble beginnings:
Coffee, fruits, cocoa, cotton, tea, flowers, sugar, gold, rice, spices and herbs, wine, sports balls, and other composite products.
-products available through Fairtrade International
Only about improving North and South trade relations
Work with large distributors who have questionable ethical records
Restricts consumer choices - impose 'the best' ethical choice
Favours plantations over small organisations
Certain products get the Fairtrade label not the organization
Different fair trade labels
more time and resources to spend on family plots
higher income = social benefits
greater access to food
more children in school
improved gender equity
unequal benefits - why?
favours the more wealthy
suitability - certification built around Latin America
a living wage?
confidence, self-esteem, dignity & social capital
neighbouring farms creating better working conditions
For text:
clean water
new schools and clinics
Full transcript