Fairtrade Easter egg rip off

24

Comments

  • My "actual agenda", and this will be my final rant, is that very little of the extra added to Fairtrade products goes to the farmer. People wrongly assume (as in a post above)that the extra 10p or whatever ends up in the farmers pocket, when in reality very little of it does. Much goes on marketing, advertising, distribution, community improvements, etc, etc.
    Although I accept that the Fairtrade set up does improve lives, the extra price is a rip off and people would be far better donating directly to charities which work directly with world's poor.

    What's wrong with community improvements?
  • ElefantEd
    ElefantEd Posts: 1,189 Forumite
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    Of course fair trade is not the be-all and end-all of improving the lives of poor farmers in developing countries. I don't know anyone who genuinely thinks it is. However it is better than the alternative of 'traditional' international trade, and is a good first step along the way to a fairer global society.

    All fair trade is not equal. The fair trade mark shows that the product meets the minimum standards (and thus guarantees that the farmer is benefiting to that extent); some ompanies, such as Divine, CafeDirect and Traidcraft go much further. Personally I wouldn't buy a Nestle Kit-kat, even though it's fair trade chocolate, because of their other practices - and yes, you could argue that their use of FT is greenwash, to give them a better image.

    As far as payments to farmers go, the plain fact is that fair trade is a better deal in all sorts of ways - guaranteed minimum price, guaranteed price above the market level, less uncertainty about income, environmental improvements, community projects etc etc. If you look at ordinary (not FT) chocolate, about 4% of the final price of the bar goes to the cocoa farmer. For FT chocolate, the payment might only be 4.5% (or it might be more, I remember reading something recently which suggested the FT premium was $200/tonne on top of $2000/tonne at the market rate). However, this could be the difference between bare survival and being able to save and invest in the future, in education etc.

    Because the FT relationship is one of trading, not one of charity, it is both more empowering for those people it supports and more sustainable as it isn't reliant on goodwill in the same way.
  • ElefantEd wrote: »
    Of course fair trade is not the be-all and end-all of improving the lives of poor farmers in developing countries. I don't know anyone who genuinely thinks it is.
    The points I was trying to make are that I feel the amounts paid to the farmer, community, etc are a very small percent of the final product selling price, yet the SP is way above that actual benefit plus normal transport,handling,distribution etc costs. Many churches, if not most, promote and/or sell Fairtrade products,by volunteers at zero retail markup. In the case of the £5 Easter egg, Asda sell a similar, branded, weight egg for between £1 and £1.50 -a huge difference. Several of the congregation at the church I attend are not aware of the tiny amount the farmer gets and even the Fairtrade website won't reveal what little the farmer gets (when I downloaded a PDF supposedly discussing it they avoided it in very much the same way as a politician won't give a direct answer). I still stand by my initial claim that the Fairtrade system is ripping people off and that many middlemen are making far more than the poor farmer gets.
  • ElefantEd
    ElefantEd Posts: 1,189 Forumite
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    The point is whether the farmers are better off under a fairtrade scheme than the alternative. And the answer is of course that yes, they are.

    Of course, if the OP feels that they would be better off buying an ASDA egg for £1.50 and giving the £2.50 difference to a development charity, then I wouldn't particularly argue. Though I would be prepared to suggest that the amount going to support an individual farmer wouldn't be much different in this case either, because all of the major development charities quite rightly spend a significant proportion of their efforts and funds on trying the change the overall economic system, through campaigning and lobbying as well as strengthening third sector organisations in developing countries.
  • ElefantEd wrote: »
    The point is whether the farmers are better off under a fairtrade scheme than the alternative. And the answer is of course that yes, they are.

    Better off, quite possibly, but is it fair?

    For sure, not everyone will share this viewpoint but the point I'm aiming for here is this. The whole system is not "fair" it is very very biased in favour of big business, western capitalism etc.

    A lot of businesses selling "fair trade" products will be making a lot more money than the farmers. And thay, fundamentally, is unfair. (Depending on your political viewpoint.)
    If my post doesn't appear to be serious, then it is not serious. So what? Kick back, relax enjoy life and have a little fun. Life is far far too short to be grumpy!!!!
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    You're right, there's still a supply chain and still manicuring costs and neither of those get cheaper just because the raw material was dearer. In fact, the lower volume may mean the other costs are proportionately higher, which helps explain the premium. Traidcraft products are also a higher quality line than the mass-market ones, and if they use 100% FT cocoa instead of a proportion (as some greenwashers do), their direct costs are higher. Position then with Lindt, not the cheapie stuff with vegetable fats, etc.

    'Give the money through a church instead' has some merit, it depends what's important to you. Some churches support missions with donations, which is more of a theological lobbying than aid distribution. Maybe this is fine by you, and it certainly isn't all churches, but I question the value of sending a rich westerner to buy bubbles and patronise poor locals for those that do.

    Where the church gifted money goes in aid, as much will, is that also the best solution, to hand out food and extend dependency? It's like giving a beggar £1, it reinforces the victim behaviour, whereas whilst The Big Issue might be a pretty awful read, the point is that it's a framework to help people up, step at a time. Fair Trade is similar, especially Traidcraft and ilk - they remove dependency SSSI people can get on with earning a living. The guarantee over the market rate isn't a handout for 'being good', it's to offer a commercial alternative so farmers don't have to rely on a monopoly mechanism which left unchallenged would happily pay them £0/kg for beans. That commercial alternative, along with small loans, social infrastructure, etc is not about a handout, it's just levelling the playing field a bit.

    It's a little like organic food, there are negligible if any qualified health benefits (maybe some trace minerals) and flavour benefits are not guaranteed, but that's not what it's about. Organic food is about the whole system, about not racing to the bottom, supporting some other important things. For instance, by feeding the soil, which feeds the plants, the whole ecosystem gets to thrive, biodiversity is maintained, bees, birds, the lot all get to live on a bit of land. Welfare standards are very high for livestock not because they eat organic grass so much as the two go hand in hand, if you care about things, you look after them, don't pump them with American style artificial growth hormones to make more but unnatural meat.

    So I think there are a lot of parallels, the premium you pay certainly doesn't all go to the farmer, but some does, and the bit that does is supportive in a wider sense.
  • Sorry, you cannot make this up. OP complains about an egg, that is a commercial success of some fantasy event, and the paltry donation to a commercial food supply organisation of 10 pennies per egg.
    Yet the church is one of the biggest landowners in England, and needs to poor to keep its coffers in flowing in.
  • ElefantEd
    ElefantEd Posts: 1,189 Forumite
    First Anniversary First Post Name Dropper
    Better off, quite possibly, but is it fair?

    For sure, not everyone will share this viewpoint but the point I'm aiming for here is this. The whole system is not "fair" it is very very biased in favour of big business, western capitalism etc.

    A lot of businesses selling "fair trade" products will be making a lot more money than the farmers. And thay, fundamentally, is unfair. (Depending on your political viewpoint.)

    Of course the whole system is unfair. Fair trade doesn't claim to solve this, just to make things less unfair. The organisations working on fair trade also work on the structural issues; but trade still needs to happen whilst those are sorted out (if they ever are). And fair trade at least makes things better - significantly better -for those farmers participating.

    You could make a case that because world trade is so unfair, you won't buy any products that rely on it. But you will rapidly run out of things to eat, wear or type on! So in the meantime, fair trade (and especially fair trade through the more ethical organisations like Traidcraft) is the best available option.
  • Yet the church is one of the biggest landowners in England, and needs to poor to keep its coffers in flowing in.

    As a new user, can I assume that all of your other thousands of posts make zero sense too?
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