{"id":635,"date":"2016-07-25T09:28:41","date_gmt":"2016-07-25T08:28:41","guid":{"rendered":"http:\/\/www.naturalcollection.com\/blog\/?p=635"},"modified":"2016-07-25T09:29:18","modified_gmt":"2016-07-25T08:29:18","slug":"6-myths-fairtrade","status":"publish","type":"post","link":"https:\/\/www.naturalcollection.com\/blog\/fairtrade\/6-myths-fairtrade\/","title":{"rendered":"6 Myths About Fairtrade"},"content":{"rendered":"

Most people have seen\u00a0Fairtrade products<\/a>\u00a0and have some familiarity, so why do the same misconceptions about what it is and how it actually works keep cropping up?\u00a0Our friends at the Fairtrade Foundation recently delved into the issue.<\/p>\n

From the friend\u00a0in the pub who informs you that Fairtrade ‘doesn\u2019t really help farmers’, that it\u2019s a marketing scam designed to get people to pay more for basic products or to \u2018make middle class people feel better about themselves\u2019 \u00a0– with a lot of seemingly contradictory information out there about Fairtrade online and\u00a0falling consumer trust in brands and traditional advertising<\/a>, it can be hard\u00a0to separate\u00a0fact from fiction.<\/p>\n

Here\u2019s a rundown of some of the most common the Fairtrade Foundation\u00a0encounter:<\/p>\n

Myth 1:\u00a0“Fairtrade products are more expensive”<\/em><\/strong><\/p>\n

The range of Fairtrade products is now huge, with over 5,000 Fairtrade certified products in the UK,\u00a0many of them\u00a0supermarket own-label or inexpensive brands. Long gone are the days of Fairtrade products being the sole\u00a0preserve of the middle classes.<\/p>\n

From\u00a0Fairtrade own-label tea and coffee ranges\u00a0to chocolate favourites, along with 100%\u00a0of bananas in Sainsbury\u2019s, Co-op and\u00a0Waitrose, there are lower priced everyday products available too.<\/p>\n

For example, tea and coffee at high street giants Greggs is\u00a0Fairtrade and they are\u00a0currently trialling Fairtrade bananas in 350 outlets<\/a>. Those looking for a floral bargain will also note that discounters Lidl even sell Fairtrade roses. With more supermarkets and mainstream brands than ever selling Fairtrade,\u00a0can people\u00a0really afford to keep saying it’s more expensive?<\/p>\n

Myth 2:\u00a0“Anyone can stick the Fairtrade badge on their product and claim it\u2019s ethical”<\/em><\/strong><\/p>\n

The idea that companies can just slap the FAIRTRADE Mark on their products when they want to claim ethical credentials just isn’t true. The Mark is a registered certification label for products sourced from producers in developing countries. Products that display it\u00a0must<\/i>\u00a0meet\u00a0Fairtrade Standards, set by Fairtrade International<\/a>.<\/p>\n

The\u00a0Standards apply to both producers (farmers and workers) and traders (the shop you buy from) and are agreed through research and consultation with Fairtrade stakeholders, including farmers and workers themselves, traders, independent experts and national Fairtrade organisations such as the Fairtrade Foundation in the UK.<\/p>\n

If a company wants to get\u00a0a\u00a0product certified (and have the FAIRTRADE Mark displayed on their packaging) they have to first ensure that it meets all of the above Standards. Any company \u2018just slapping the Fairtrade badge on their product\u2019 without meeting the above standards for that product would be investigated and could even\u00a0open themselves up to legal action.<\/p>\n

Myth 3:\u00a0“Only a small percentage of the price you pay for a Fairtrade product goes back to farmer”<\/em><\/strong><\/p>\n

This one occurs\u00a0all the time and is based on the misunderstanding that Fairtrade farmers are simply paid a percentage of the retail price\u00a0you<\/em>\u00a0pay for a product in a shop \u2013 this is not the case.<\/p>\n

The retail price you pay as a customer\u00a0is determined by the retailer.\u00a0While\u00a0paying\u00a0farmers and workers a\u00a0percentage<\/em>\u00a0of the retail price might appear a\u00a0good way\u00a0to demonstrate the impact of Fairtrade from the customer’s\u00a0perspective, it doesn\u2019t address the real inequities in conventional market arrangements.<\/p>\n

The Fairtrade price that the farmer receives\u00a0occurs\u00a0at the point where the producer organisation they’re part of (e.g.\u00a0a coffee co-operative) sells to the next person in the supply chain (usually an exporter or importer). This is\u00a0intended to ensure farmers and workers can cover their costs no matter how low the world price for their commodity falls. You can find a more\u00a0in-depth\u00a0explanation over on the Fairtrade Foundation\u00a0FAQs page<\/a>.<\/p>\n

Myth 4:\u00a0“Fairtrade locks farmers into a fixed price”<\/em><\/strong><\/p>\n

You may have read about the \u2018Fairtrade Minimum Price\u2019, and this is indeed a real thing. But it\u2019s a safety net calculated to cover farmers’ costs of production, and only coming into play in a worst case scenario\u00a0– it’s not something that locks farmers into a fixed price.<\/p>\n

Let\u2019s use the example of Maria,\u00a0a farmer for a Fairtrade coffee co-operative in Colombia,\u00a0to explain. If the market price of coffee should fall\u00a0below<\/em>\u00a0the Minimum Price set in the Fairtrade Standards, then Maria\u2019s cooperative would receive this guaranteed Fairtrade Minimum Price.<\/p>\n

This safety net means Maria and other farmers in her co-op can cover their production costs which helps them to predict their income and budget for the future. However –\u00a0and this is really important\u00a0–\u00a0if the market price of the coffee is\u00a0above<\/em>\u00a0the Minimum Price, then the market price is the basis for negotiations between Maria\u2019s co-op and their buyers (they can and do also negotiate higher prices on the basis of quality and other factors).<\/p>\n

This is something that people often don\u2019t realise, assuming that under Fairtrade farmers receive a fixed rate that can never change, even if the market price of the crop they\u2019re growing is high.<\/p>\n

In addition to the Minimum Price or market price, Fairtrade producers receive a bonus-type payment called the \u2018Fairtrade Premium<\/strong>\u2019. This is an\u00a0extra<\/em>\u00a0sum of money that they decide democratically how best to spend. Some might spend it on improved training and farming techniques, others on building schools and medical clinics. Fairtrade doesn\u2019t dictate what it\u2019s spent on, it\u2019s entirely up to the producers, but in the interests of transparency this Premium spending is audited.<\/p>\n

Myth 5:\u00a0“Our company ALWAYS pays farmers more than Fairtrade”<\/em><\/strong><\/p>\n

Occasionally we see companies making claims like \u2018we always pay our farmers more than Fairtrade\u2019. But in light of the Minimum Price\/market price explanation above, what do\u00a0claims\u00a0like this really mean?\u00a0Do they mean they pay more than the Fairtrade Minimum Price? What if the market price of the commodity is high and Fairtrade farmers are receiving the higher market price?<\/p>\n

When companies make claims like this without independent third party verification, we as consumers are essentially having to take them at their word. PACT coffee who claim on their website to \u201calways pay our farmers 25% more than the Fairtrade rate<\/a>\u201d admit themselves that they currently have no\u00a0independent<\/em>\u00a0third party verification to ensure this happens, or for the monitoring of conditions for the farmers they source from.<\/p>\n

The FAIRTRADE Mark on a product means that the Fairtrade ingredients in that product have been independently verified by\u00a0FLOCERT<\/a>\u00a0– an independent certifier accredited by the International Organization for Standardization (ISO). FLOCERT can and do suspend – or in some cases even decertify – Fairtrade producer organisations if their audit shows that Fairtrade Standards are not being complied with.<\/p>\n

When it comes to Fairtrade products, when we say that buying is supporting farmers to get a better deal, you don\u2019t just have to take our word for it.<\/p>\n

Myth 6:\u00a0“Fairtrade doesn\u2019t encourage farmers to improve quality”<\/em><\/strong><\/p>\n

This myth is occasionally aimed\u00a0at coffee farmers. The argument goes that the ‘safety net’ of the Fairtrade Minimum Price means there is little or no incentive for farmers to improve the quality of their crop.<\/p>\n

But as mentioned above, producer groups are not tied in to receiving the Minimum Price. Higher quality produce can and does attract higher prices,\u00a0so there is genuine incentive for Fairtrade farmers to innovate and improve quality, not to mention the pride they feel in their work – like most of us!<\/p>\n

In addition to the price they receive, farmers also earn a Fairtrade Premium to invest in projects that will benefit their business or community. Coffee farmers\u00a0must invest 25 per cent of this back into initiatives to improve quality<\/a>\u00a0and productivity, which are fundamental ways of increasing their\u00a0incomes.<\/p>\n

Over the years, many Fairtrade coffee producers have won Cup of Excellence awards and many retail products, including coffees from\u00a0Grumpy Mule<\/a>\u00a0and\u00a0Cafedirect<\/a>, have also won various taste awards which is testament to the quality achieved. In fact,\u00a0Fairtrade coffees have\u00a0won over 28 Great Taste Awards in the last 3 years!<\/p>\n

If you have questions about Fairtrade or\u00a0Fairtrade Labelled products<\/a>, we’d love to hear them. We’ve been supporters of fair trade products for many years and will continue to do so – watch this space!<\/p>\n","protected":false},"excerpt":{"rendered":"

Most people have seen\u00a0Fairtrade products\u00a0and have some familiarity, so why do the same misconceptions about what it is and how it actually works keep cropping up?\u00a0Our friends at the Fairtrade Foundation recently delved into the issue.<\/p>\n","protected":false},"author":5,"featured_media":636,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[50,58],"class_list":["post-635","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fairtrade","tag-fair-trade","tag-fairtrade"],"yoast_head":"\n6 Myths About Fairtrade - Natural Collection Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.naturalcollection.com\/blog\/fairtrade\/6-myths-fairtrade\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"6 Myths About Fairtrade - 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