:. Food Industry News


Fairtrade Takes First Steps to Making Trade Fairer

Source: Reuters
31/03/2006

London/Kigali, March 31 - The cocoa beans harvested by Comfort Kwaasibea in Ghana end up on supermarket shelves in Britain as chocolate bars with an ethical twist.

Daily News Alerts

Kwaasibea, 46, is one of many Ghanaian farmers behind a range of Fairtrade chocolate products ambitiously called Divine.

Fairtrade producers receive a minimum guaranteed price to meet living expenses and cover production costs, plus an extra premium that is invested in the local community. The Fairtrade price is always equal to, or higher than, the world price.

"My life has changed," Kwaasibea said. Since going Fairtrade seven years ago, she has been able to take into her care four children from poor families as well as help provide school uniforms for the local school.

More than one million producers, workers and their families in 50 countries benefit from Fairtrade, according to the certification body Fairtrade Labelling Organisations International.

However, observers say changes to the scheme are needed and campaigners believe fair prices are not enough and hope a draft accord by the World Trade Organisation (WTO) on agriculture, due in April, will help poor countries by lowering trade barriers.

"Fairtrade certification helps stabilise the price year after year for farmers rather than leave them to fend for themselves in a volatile market," said Tim Schilling, the director of the Partnership for Enhancing Agriculture in Rwanda through Linkages (PEARL), which focuses on coffee production.

Fairtrade prices are so far only "fairer" than standard prices, he told Reuters, adding that Fairtrade "eases some of the pain" for farmers.

"But these farmers are a long way away from having a decent standard of living with the Fairtrade prices."

Critics also say Fairtrade certification, which requires farmers to pay annual fees for inspection, is expensive.

"The process is indeed expensive, when you consider you're dealing with people with average incomes of around $200 to $500 per year," Schilling said. "However, the stability in prices over the long term is worth every penny."

To qualify for the Fairtrade mark, producers have to comply with environmental and labour standards, such as paying fair wages and using no child labour. Spot checks are sometimes carried out, and producers can lose their certification.

Fairtrade inspections also help cooperatives manage their affairs in a more business-like fashion, Schilling added.

Kwaasibea says many more farmers in her village want to join the scheme. "They are rushing. They are rushing to become Fairtrade members," she told Reuters.

According to Britain's Fairtrade Foundation, which promotes the scheme, more farmers will be able to join it only when supply is matched by demand for the goods.

"Only as we expand the market can we enable more and more producers to come in," the foundation's executive director Harriet Lamb told Reuters.

LARGEST FAIRTRADE MARKET

And the demand is growing.

The Fairtrade Foundation says sales in Britain, the largest Fairtrade market in the world, rose 40 percent last year, while the number of producer groups selling to the U.K. grew by half in the past nine months.

"They're wired, they're connected, they want to do their part...these are great people," PEARL's Schilling said of Fairtrade shoppers.

In spite of the growth, however, Fairtrade needs wider consumer support if it is to help a considerable proportion of farmers in the developing world.

Fairtrade coffee, the most popular Fairtrade product among Britons, accounts for just over 4 percent of the British coffee market. All ethical labels, including Fairtrade and Organic, account for less than 3 percent of the global coffee market.

Schilling would like to see the quality of Fairtrade coffee improved and higher premiums paid to the farmers.

"You need to have consumers who like the philosophy and the taste of the coffee so that they return to buy more," he said. "If you have to hold your nose to drink it, something isn't right."

In turn, the Fairtrade Foundation wants governments to invest 50 million pounds over five years in supporting and expanding Fairtrade and would like Britain to champion the initiative.

ROLE FOR GOVERNMENTS

Governments worldwide have an important role to play in promoting fair international trade, of which the Fairtrade scheme is only a small part, campaigners say.

"It's very clear that we have to do something about the way world trade rules are implemented...if we are going to give poor people a chance," Lamb said.

Observers and campaigners alike have long blamed subsidies paid to Western farmers for pushing global prices down and tilting competition in favour of richer producers.

WTO member states have been talking since 2001 about a global pact to free up global trade and lift millions out of poverty and are now racing to meet the April deadline for concluding a key part of the pact.

"You absolutely need to have action on ending the outrageous U.S. and EU subsidies, ending the escalating (import) tariffs," Lamb said, adding that industrialised countries should be opening their markets to produce from developing countries.

"However, we do also strongly believe that developing countries should be given the right to protect their economies," she said.

"We've pushed and pushed them to liberalisation, now we need to give them time to develop their economies."



GO   View more articles on this subject

Email This Article To A Colleague     Print A Copy Of This Page
 
 
 
 
FLEXNEWS - Business News for the Food Industry

About Us | Contact Us | Terms & Conditions | Privacy Policy
 
Daily News Alerts
Related Items
Coffee, Sugar Rise, Buoyed by Oil Recovery
Coffee, Cocoa Fall as Recession Fears Deepen
Fear of Recession Hits Grains, Oil, Metals,
Coffee, Sugar Fall More Than 3 pct as Funds Sell
Coffee, Sugar Fall on Grim Economic Outlook
Natra Net Profit Grows 46.7% in the First Nine Months...
Coffee, Sugar Edge Up on Firm Equities, Oil
October One of Worst Ever Months for Commodities
Coffee Rises as Dollar Falls After Rate Cut
Coffee Up but Market Still Cautious

More in Food Industry News
Colombia: Coffee Production and Exports Forecast to...
Ebro, British Sugar in Sugar Unit Talks - Source
UAE New Melamine Certification Requirements for Dairy...
Indonesia Says Aims to Export Sugar in 2009
EU Agrees Deal on Reforming Farm Policy to 2013
India Tea Exports to Cross 200 Million Kg in FY2009...
Ivorian Cocoa Crop Seen Down at 1 Million Tonnes
Gates' Fund Raises Stakes in Mexico Drinks Companies...
Kenya Coffee Prices Fall Despite Strong Demand
Lance Named Lead Bidder for 2 Bankrupt Snack Food Companies

Top Headlines
New Brazilian Bunge Sugarcane Mill Operational in May
BASF Issues Profit Warning, Cuts Global Output
Burger King Corp. to Limit Sodium in Advertised Kids...
Sime Enters China's Palm Oil Refinery Business
Dutch Private Label Beverage Maker Refresco Sees Expansion...
T1R1 Receptor Binding Assays for Identification of...
Saudi Arabia Retail Food Sector Annual Update 2008
Sofiproteol's Diester Industrie Acquires Glycerine...
China Resources Enterprise Announces Unaudited Quarterly...
Rising Ivorian Cocoa Prices Dampen Ghana Trade
Yum Brands to Globalise Taco Bell Chain
George Weston Earnings Little Changed
Nomura Chief Says Global Liquidity Crisis is Over
Benchmark Thai Rice Price Rises to $580 Per Tonne
Nespresso: Gourmet Coffee Demand Safe from Crisis
Food Costs, Weak Economy Boost Anti-Ethanol Lobby
Final SOS Cuetara Biscuit Unit Bids in 3 Weeks
InBev Closes Bud Deal, Becomes No. 1 Brewer
Glanbia Confirms 2008 Market Expectations; Announces...
Central America Coffee Farms Holding Out for Price...
Nestle Opens Second R&D Facility Dedicated to its...
Nestle Marketing Man Hopes to Revive Brand Carrefour
Pepsi Bottling to Cut Jobs, Trims Forecast
Brazil to Limit Cane Planting in Food Producing Areas...
Israel's Strauss Group Q3 Net Profit, Revenue Rise...
Probiotics to Influence Fat Metabolism and Obesity
Onion Flavoured Compounds and Use
Constellation Brands Sees Steady Business


 


FLEXNEWS 2008 - All rights reserved
ISSN 1950-6228