The Story on Fair Trade: Myth vs Reality
Since 2007, bloggers around the world have joined forces on Blog Action Day to blog about one important global topic. Past topics have included water, climate change and poverty. This year, Blog Action Day is Oct 16 and the theme is FOOD. I’m proud to do my part by joining over 1,500 bloggers in 80 countries participating in today’s Blog Action Day because I believe individually we can do our part to make a difference; when we raise our voices together, we can change the world. I sincerely hope you will find this post informative and inspirational. Warmest aloha, Marty
Fair Trade. You see it on labels for coffee, chocolate, flowers, clothing, accessories, crafts and more, but what does it really mean?
Fair Trade is a market-based approach to sustainable development, seeking to empower millions of disadvantaged producers worldwide while protecting the environment for future generations.
The concept of fair trade began in the US in the mid 1940s and became a fully fledged, organized social movement by the late 1980s. The aim of the movement was to improve the working conditions of producers in developing countries and to advocate for higher prices for their products.
It is a strategy for reducing poverty while promoting sustainability. The idea is to put less money in the hand of the middleman and more in the hands of producers. So, instead of coffee growers getting 11 cents for every dollar the coffee consumer spends, they might get 28 cents.
This not only covers the cost of production, but enables the growers to develop with socially and environmentally responsible practices they can afford. More money to the producer also improves their chances of remaining independent rather than being absorbed by some multi-national corporation.
Fair trade also follows other guidelines in furtherance of human rights. It does not allow the exploitation of children as cheap laborers, it ensures women’s work is valued, and it advocates for environmentally sustainable practices. This market access lifts families from poverty through trade — not aid — which keeps food on the table, children in school and families on their land.
Fair Trade Myths
As awareness of fair trade grows, particularly in the U.S. so do many misconceptions about fair trade. Below are just a few popular myths about fair trade and the realities behind them.
Myth: Fair Trade is about paying developed world wages in the developing world.
Reality: Fair wages are determined by a number of factors, including the amount of time, skill, and effort involved in production, minimum and living wages in the local context, the purchasing power in a community or area. Wages are determined independently from North American wage structures and are designed to provide fair compensation based on the true cost of production.
Myth: Fair Trade siphons off American jobs to other countries.
Reality: Fair trade seeks to change the lives of the poorest of the poor who frequently lack alternative sources of income. As North American fair trade organizations grow, they employ more and more individuals in their communities. Most fair trade craft products stem from cultures and traditions which are not represented in North American production. Most fair trade commodities, such as coffee and cocoa, do not have North American-based alternatives.
Myth: Fair Trade is a form of charity.
Reality: Fair trade promotes positive and long-term change through trade-based relationships which seek to empower producers to meet their own needs. Its success depends on independent, successfully-run organizations and businesses – not on handouts. While many fair trade organizations support charitable projects on top of their work in trade, the exchange of goods remains the key element of their work.
Myth: Fair trade refers only to coffee.
Reality: Fair trade encompass a wide variety of agricultural and handcrafted goods, including baskets, clothing, cotton, footballs, furniture, jewelry, rice, toys, and wine. While coffee was the first agricultural product to be certified fair trade in 1988, fair trade handicrafts have been on sale since 1946.
It hit me very early on that something was terribly wrong, that I would see silos full of food and supermarkets full of food, and kids starving. … In Fair Trade, we see ourselves as this infinitesimal part of the world economy. But somebody’s got to come up with an alternative model that says children eating is No. 1. ~Madea Benjamin, co-founder, Global Exchange, and former U.N. nutritionist
What’s in it For Me?
Purchasing products that are fair trade certified can give you peace of mind that more money is getting into the hands of the producers, improving their working conditions and enabling development that is economically, socially, and environmentally sustainable. It can help you meet your goal of pushing for more environmentally friendly practices by way of how you vote with your pocketbook.
So there you have it. What does fair trade mean? At the end of the day, it means a better, more environmentally friendly, economically just world for local producers and for you.
Where to Look for Fair Trade Products
In the neighborhood:
Legman’s, Ben & Jerry’s, Whole Foods, Trader Joe’s, Starbuck’s, Caribou Coffee, Dunkin’ Donuts, Costco, Giant, Sam’s Club, Safeway, and Target are among the many retailers that offer a variety of Fair Trade certified products.
Online:
Equal Exchange: Sells delicious chocolate, coffee and other foods that are not only fair trade certified, but certified organic as well. http://www.equalexchange.coop/
Fair Trade USA: This site provides a wealth of information, from the latest information on fair trade in the U.S. to a list of partners and resources: http://transfairusa.org/
Fair Trade Resource: The latest news and where to buy fair trade products. http://www.fairtraderesource.org/change-the-world/buy-fair-trade-products/
Ten Thousand Villages: Fair trade retailer that works with over 130 artisans to offer fair trade certified jewelry, home decor, clothing and gifts. http://www.tenthousandvillages.com/
World of Good: This site was purchased by EBay in 2010 and offers a wide variety of fair trade certified products. http://worldofgood.ebay.com/
Blog Action Day 2011
To learn more about Blog Action Day 2011, visit their website at http://blogactionday.org/
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Twitter: stevetheowl12
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Great post, Marty! I’d heard the phrase bandied about for a while, but I had no idea what it meant. Thank you for posting this fascinating look at what fair trade is and what is isn’t.
Steve Nicholas recently posted..Applying the Lessons
Thank you for posting about fair deal, I have been looking for it from long time.The way you have put up is great and informative, most of the idea regarding fair deal has been understood.
Jewellers Dublin recently posted..Engagement Rings, Diamond Rings, Wedding Rings, Jewellers, Dublin, Ireland
Twitter: SadieMHarris
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Hello Marty,
Marty, hello
Great post, very informative.
Here in France I must say I do not notice an abundance of Fair Trade products when compared to the amount that I see in the supermarkets in England for example. That said what I would say about France is as a county we seem to import much less food items which in the UK are imported on the whims of the buyers. For example fruit such at raspberries and strawberries are available in the large supermarkets in the UK year round. Here in France that is simply not the case…we tend to find food items such as these are only available when in season;- that the French season, such items are not imported. Nuts are another example;- here in France it would be very rare to find Brazil nuts, Macadamia nuts and Pecan nuts. Instead we find an abundance of hazelnuts and walnuts which grow here in France. That said food cost are high in France and continue to rise much faster than may people’s incomes which must make life very hard for some.
Thanks for sharing really enjoyed this post. Have a lovely weekend, tomorrow I fly to the UK maybe I’ll have raspberries for supper!
Sadie-Michaela Harris recently posted..By: Sadie-Michaela Harris
Hi Marty, thanks for educating me about fair trade, I didn’t know half the things you told me here. We also have a fair trade association for Australia and New Zealand, and I think it’s similar to the organization in the United States.
It’s wonderful that people have set this up this kind of organization, so different groups are not exploited.
Regards from Julieanne
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Twitter: donna_tribe
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THANK YOU for posting this. It has been one of my pet peeves for a long time. “fair trade” words mean different things. I am very particular myself about buying anything that is linked to corruption in the world. I know someone that worked around the globe to investigate companies that America sources out. The stories are beyond horror. But it made me a wise consumer. I am so happy you explained what fair trade really is.
I am blessed to have a coffee shop in my town that gives us the history of where their coffee comes from. Pictures, articles,etc. of how they are hands on with the coffee they purchase. It may cost a little more, but it is better karma.
Thanks Again,
Donna
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So glad you found the information helpful Donna! Fair Trade is one of those subjects that tends to elicit emotional responses because there is so much misinformation out there. It may not be a perfect system, but until somebody comes up with something better, in my mind the good far outweighs any shortfall.
Twitter: RetireWithCarla
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Thanks Marty for the great information on where to look for Fair Trade products. I have been a supporter of this for many years and it is nice to now have these super convenient lists.
Marty, I had no idea about most of the myths related to Fair Trade. Now I am aware that purchasing their products mean a more environmental friendly society.
By the way, I love the topic of food for the blog action day. I already have read some inspiring post related to this topic and it is nice to see that it encourages people to take proper action and fight hunger.
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Hi Kristina,
Glad to see you found the information helpful, it was certainly enlightening for me to research the program. This was my first opportunity to participate in Blog Action Day. Great group of people and I really like their mission, so I’ll definintely do it again. Have a great week!
I hope a lot of people will patronize fair trade products to help developing products and give chance for the producers to earn well in order to preserve the environment.
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Hi Julie,
Thanks for sharing your thoughts … I agree with you, buying Fair Trade products is just one more thing each of us can do to make a difference in the world.
Fair Trade is a good concept. But I remain skeptical if it really reaches the real artisans, laborers and skilled workers. It is always the middle men who make the most money. I hope that this changes soon.
Welcome and thanks for taking the time to share your thoughts. I certainly understand your concerns, and I hope that you’ll take the time to visit some of the sites referenced in the article to learn more about Fair Trade. Aloha!
Twitter: raenalynntweet1
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Hi Marty,
Thank you for raising awareness to Blog Action Day and dispelling the myths of Fair Trade. Your article cleared up some of the many misconceptions about Fair Trade and I really appreciate your resource list of where we can support Fair Trade products. Globally, we have the resources to sustain humankind. Unfortunately there is so much waste and
misappropriation.
If Fair Trade means “a better, more environmentally friendly, economically just world for local producers and for you,” then I am all for it. It sound to be an improved version of capitalism:
1) More money to the producer also improves their chances of remaining independent rather than being absorbed by some multinational corporation.
2) Improve the working conditions of producers in developing countries and to advocate for higher prices for their products.
I am quite fascinated by Fair Trade and again thank you for sharing. There are so many people who are unaware that we do have the capability for real change.
Raena Lynn
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