Fairtrade

A disturbing report in today's paper for supporters of 'Fairtrade' in this house, this parish, and this town.


Fairtrade 'harms third world farmers'
By Lewis Carter

The booming Fairtrade industry is a hollow "marketing device", according to a top economic think-tank.

A report by the Adam Smith Institute says the work of the Fairtrade Foundation does not promote long-term economic development and leaves most third world farmers worse off.

Only 10 pc of the Fairtrade premium reaches farmers, according to a report by the Adam Smith Institute.

This damning verdict comes as new figures revealed record sales of Fairtrade products in Britain, with nearly £500 million spent on them last year.Tom Clougherty, a policy director at the Adam Smith Institute, said: "At best, Fairtrade is a marketing device that does the poor little good. At worst, it may inadvertently be harming some of the planet's most vulnerable people."

The Fairtrade Foundation claims to offer a "better deal" for disadvantaged farmers in the developing world.

Suppliers must win a licence from the organisation in order for their goods to carry the black, green and blue logo in shops.

The label is intended to signify that money spent on the goods will be fed back to the workers who produced them.

But the institute's report, titled "Unfair Trade", claims the scheme leaves the vast majority of farmers worse off, as they don't qualify for the Fairtrade label and are therefore isolated from the market.

The report, which calls for a free market approach, says that only 10 per cent of the Fairtrade premium paid by consumers reaches producers.

It also claims that four-fifths of produce sold by Fairtrade farmers ends up in non-Fairtrade goods - and that the system helps land owners, not labourers.

Fairtrade sales in the UK are soaring, with £493 million spent in 2007 - up 81 per cent on 2006.

The Fairtrade Foundation says more than seven million people in 58 countries benefit from its system.

A spokesman said: "This report is a cynical attempt to undermine our pragmatic approach to trade.

"Fairtrade products cost the consumer the same as ordinary products, yet we ensure farmers get a higher price."