Fair Trade Mark for ethical Third World produce

Information from 'The Global Consumer' (publishing details in previous item).

1992 saw the introduction of the 'Fair Trade Mark'. This guarantees that the brand carrying the Fair Trade Mark has been sourced and supplied from the Third World in a way that provides the producer with a better deal than is the norm. The mark will be administered and promoted by a number of development agencies, campaign groups and alternative trading organisations, who were inspired by a similar and very successful scheme in the Netherlands, and who will soon be setting up an independent foundation. Look out for the Fair Trade Mark, particularly on coffee, tea and honey.

An article by Gail Counsell in the Independent (adapted below) explained how the Dutch scheme works.

Any commercial Dutch or Belgian coffee roaster can use the Max Havelaar brand name - the equivalent there of the Fair Trade Mark - provided it agrees to purchase its beans from a list of approved small Third World coffee growers. The scheme has captured a three per cent market share in less than three years.

'It agrees to purchase its beans from a list of approved small Third World coffee growers'

The scheme has its flaws. The attempt to set a minimum floor price is probably doomed to failure given the fluctuating nature of the world price for coffee. Moreover, all attempts to 'fix' prices lead to trouble in the long run: as the failure of pacts from tin to cocoa - including in 1989, coffee - have demonstrated. Also, traders, who dominate the coffee market, form a useful function balancing and smoothing the market and establishing a true price. Some effort will have to be made to include them in the system if it is to really take off.

You can rate how well you like this idea. Click 0-10 below and press the Submit button.
Bad Idea <- 0 1 2 3 4 5 6 7 8 9 10 -> Great Idea
As of 05/28/96, 15 people have rated this page with the overall rating (0-100%) of: 85%

Previous / Next / Table of Contents