Two Ways of Looking at Fair Trade

Host:

Does fair trade work? How much of a difference does it make, if any? Please welcome Brian and Ellie who will share their thoughts on the value of fair trade. Let’s start with Ellie. Tell us about fair trade.

Ellie:

Farmers and workers who join fair trade cooperatives agree to follow certain sustainable practices. This leads to certification and the right for their products to carry a fair trade label. Consumers are encouraged to purchase items with a fair trade label in order to help the industry.

Brian:

But labels don’t tell the whole story. Fair trade certification is a long and hard process. It costs money and these expenses come out of a farmer’s earnings. The poorest farmers can’t afford to participate, which defeats the purpose of “fair trade”.

Ellie:

Hold on. There are many benefits to fair trade, and the fees are affordable. They cover the costs of people who make sure that cacao farmers get a minimum living wage when the markets fall. These fees are used to teach sustainable farming methods. Money also goes towards improving community services like education, job training, and healthcare. Everyone wins.

Brian:

Well, it’s not easy to monitor if the funds are truly being used for these purposes. 

Host:

Let’s talk about working conditions. 

Ellie:

Fair trade makes sure every job is open to both men and women. But child labor is not allowed. It works with local authorities to keep children off the farms and out of the factories.  

Brian:

That’s all very well to say, but there is evidence that child labor is still happening, even on fair trade cacao farms in West Africa. Labor shortages, poverty, and school closings give children no choice but to work.

Host:

Now, let’s talk about prices. There is no doubt that the benefits for the growers and workers will raise prices along the supply chain. What about the costs passed to consumers? 

Ellie:

We all like fairness. We also like to see the “little guy” succeed. Fair trade focuses on the small producer. Many customers are willing to pay more for products made ethically––with people and the environment in mind.

Brian:

I disagree. It’s all about the bottom line. If you can buy a “regular” chocolate bar for half the price of a “fair trade” bar, which do you think people will choose? The market for fair trade products is people with higher incomes. 

Ellie:

And just what do you think is in that cheap chocolate bar? Lots of sugar, vegetable oil, and little to no cocoa! Dealing directly with farmers and cutting out “middlemen” keeps prices down and allows us to keep its quality in check. This is how we make a difference in the lives of producers. 

Host:

And that’s all we have time for today. Thank you both for a lively discussion!