About Fairtrade

Opinions differ as to how effective fairtrade is in truly lifting developing country farmers out of poverty. The proponents of fairtrade say that it promotes self sufficiency and development. Critics say that the premiums are either too low or they serve to isolate farmers from the open market into an artificial second market that creates servitude to fairtrade buyers.

It is, however, somewhat hard to see the strength of the latter argument against fairtrade: market price for certain goods is simply the price consumers are willing to pay for that particular product in a given quantity. Fairtrade could perhaps be seen as a premium brand. The Fairtrade label is awarded by the FLO, Fairtrade Labelling Organizations International. Companies apply for the label, and they agree to pay farmers above market price for their products. The premium can then be spent on education and other needs by third-world farmers.

Whichever it is, good or bad, Fairtrade has grown considerably in some European markets. For example, in 2006 British consumers spent £290 million on fairtrade goods, an increase of a whopping 49% year over year.