Category: Resources

Two Ways of Looking at Fair Trade

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.

Two Ways of Looking at Fair Trade

Transcript

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:

Thank you for having me.

Brian:

Likewise!

Host:

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!

Is Child Labor in Your Chocolate?

Chocolate is a thriving business, and big companies make a lot of money selling it. The chocolate industry is worth a whopping 135 billion dollars, and it continues to grow. However, as these big companies continue to gain bigger market shares and higher profits, millions of cacao farmers bear the costs.

Chocolate is a thriving business, and big companies make a lot of money selling it. The chocolate industry is worth a whopping 135 billion dollars, and it continues to grow. However, as these big companies continue to gain bigger market shares and higher profits, millions of cacao farmers bear the costs––earning less and less each year, well below the international poverty line. 

Cacao doesn’t grow just anywhere. The trees need hot, humid climates. That’s one reason that nearly 70% cacao trees are grown in West African countries. However, most of the money is earned after the beans leave the farmers and only when they reach the Global North, where the beans are processed and made into chocolate as we know it.  

Back on the cacao farms, farmers and their workers scrape by with an average income of less than $1.25 a day. The disparity is shocking. Cacao farmers in Côte d’Ivoire (Ivory Coast) and Ghana alone make 60% of the world’s cocoa but earn only 3-6% of its retail value. 

On this amount, they cannot afford the basic necessities. They have little food, water or shelter. They cannot afford to send their children to school and are often forced to send them to work on cacao farms for another source of income. They work to survive, and their families depend on it.  

Unfortunately, the industry takes advantage of the situation. Much of the cacao harvested for mass-produced chocolate from major companies is often done by young teens and children. In fact, as many as 1.56 million children are estimated to be working on cacao farms in West African countries.  

Cacao farming is a challenging labor-intensive process. The fruit is cut straight from the branch with a sharp blade. Then it is cracked open with a machete or a wooden mallet so that the cacao beans can be scooped out. Imagine a child doing such dangerous work! On top of that, they are exposed to chemicals daily. 

Even if conditions were safe, child labor exploits children. They can’t attend school, and they are subject to abuse, injury, malnutrition, and exhaustion as farm workers.  

We should never tolerate child labor so that the rest of the world can have cheap chocolate. But what can we do to hold the chocolate industry accountable? We can start by paying a little more for a bar of chocolate.