Fairtrade Case Study

4677 Words 19 Pages
Register to read the introduction… A private industry survey of 179 Fair Trade farmers from Central America and Mexico came to the conclusion that more than half of their families still go hungry for several months of each year. The wage of $1.55/lb leaves the farmer only 50¢/lb after the fees, taxes, and expenses. Antonio admits that without the higher wage provided by Fairtrade, he would be unable to continue to grow coffee but it still is not enough to keep him out of debt. The CEO of Transfair USA stated in response, “What good is it to have $2/lb coffee if you can only serve tens of thousands of farmers? You risk killing the goose.”[18] Since this interview, there must have been a change of heart within the FLO because at the February 2011 meeting, the FTM was raised to $1.90/lb that should help to increase the income of all the Fairtrade certified producers.[19] The Institute of Economic Affairs put out an extremely critical report of FLO. In the report, they describe Fairtrade as the exact opposite of many of the things they describe as their goals: costly, opaque, and substantially unproven. The report also specifically attacks FLO’s bending to the whims of western consumers by refusing to accept child labor and genetically modified …show more content…
"About Fair Trade USA." Fair Trade USA. Fair Trade USA, 2010. Web. 12 May 2011.
Universal Declaration of Human Rights - General Assembly Resolution 217 A (III), § Article 23, 25 et seq. (1948). Print.

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[1] See appendix item A
[2] IFAT quoted in Bacon, Christopher M. "Fair Trade, Organic, and Specialty Coffees Reduce the Vulnerability of Small-scale Farmers in Northern Nicaragua." Confronting the Coffee Crisis: Fair Trade, Sustainable Livelihoods and Ecosystems in Mexico and Central America. Cambridge, MA: MIT, 2008. 155-78.
[3] Fairtrade Africa. "History of Fairtrade – Fairtrade Africa." Fairtrade Africa. 2010. Web. 28 May 2011.

[4] Universal Declaration of Human Rights - General Assembly Resolution 217 A (III), § Article 23, 25 et seq. (1948). Print.
[5] “History of Fairtrade.” Fairtrade International (FLO). Ed. Jack Latimer and Veronica Perez. Fairtrade International (FLO), 2011.
[6] Lamb, Harriet. "The Fairtrade Consumer." Handbook of Organic and Fair Trade Food Marketing. Ed. Simon Wright and Diane McCrea. Oxford, UK: Blackwell, 2007.
[7] “How We Are Run.” Fairtrade International (FLO). Ed. Jack Latimer and Veronica Perez. Fairtrade International (FLO),

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