The Fair Trade movement covers over 650 producer organisations in more than 60 countries
One of the driving forces behind Fair Trade was a desire to correct for market failures in industries for many primary sector commodities. These included the effects of monopsony power among transnational food processors and food manufacturers that often led to farmers in some of the world's poorest countries receiving an inequitably low and unsustainable price for their products.
Sales of fair-trade labels have risen from an estimated Euro 830m in 2004 to Euro 4.9bn in 2011
The Fair Trade Foundation web site explains fair trade as follows:
"Fairtrade is about better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world. By requiring companies to pay sustainable prices (which must never fall lower than the market price), Fairtrade addresses the injustices of conventional trade, which traditionally discriminates against the poorest, weakest producers. It enables them to improve their position and have more control over their lives."
Key aims of Fair Trade
Criticisms of Fair Trade
© 2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.