Introduction. The Idea Of Fairtrade Emerged In The Late

812 WordsFeb 26, 20174 Pages
Introduction The idea of Fairtrade emerged in the late 1940s, which aims to rise the living standard of the disadvantaged producers and farmers in the developing countries. Providing sustainable supports to them, including investments, training, decent working conditions and better prices. The first Fair Trade label was introduced in 1988 to certify Fairtrade product and thus Fairtrade products become saleable in both supermarkets and other mainstream actors (Bezencon, 2011, p.61). This essay argues that producers and workers cannot gain notable benefits from Fairtrade. It will begin by looking at the Fairtrade minimum price and wages, then move on to the financial stability guarantee from Fairtrade Foundation and finally with the factors…show more content…
Bezencon (2011, pp.64,65) states that the earnings of Fair Trade farmers will be protected by price floor set by Fairtrade Foundation to ensure selling price of Fairtrade certified products is higher than market price and independent of the current market condition. Taking the coffee industry in 2013 as an example, despite the fact that coffee prices was low, Fairtrade farmers in Mexico, Peru, Tanzania and Indonesia sold around 8 to 26 percent higher, are mentioned in Fairtrade International (2016, p.1). It seems that Fairtrade farmers’ income can be secured. Yet data gathered in the Dragusanu et al. (2014, pp. 228-229) suggests a considerable proportion of crops produced by Fairtrade-certified farmers can be sold for the Fairtrade price: coffee (45 percent), cane sugar (54 percent), cocoa (61 percent), bananas (72 percent), and cotton (60 percent). It shows the exceptions do occur in the prevention of earning below the minimum price. As a result, Fairtrade growers cannot gain better price as the targets of Fairtrade and hence income stability cannot be guaranteed. Knowledge Application Finally, it can be argued that income generation training is ineffective for Fairtrade producers and workers. Fairtrade International (2016, p.1) reports greater proportion of Fairtrade famers received training than that of non-Fairtrade farmers. According to Bezencon (2011, pp. 64-65), training provided by Fair Trade is about
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