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Editorial:
Notes
from Gudalur
Whenever
we speak of the Just Change concept, especially in the UK, someone or
the other pops the “F” question – how is this different from
Fair Trade? Aren't they both trying to get a better and fairer price
for producers? We
thought it might be a good idea to generate some disucssion and
debate within our Just Change circle
–
hence this short article.
Fair
trade has allowed people to make ethical decisions that were hitherto
only controlled by the 'market'. It has gradually
become a
large worldwide movement accounting for upto 5% of total sales of
particular products like tea, coffee and chocolate. 
The
fair trade movement has been able to address many issues, highlighting
conditions of production and the responsibilities of buyers. It spread
the idea that your everyday purchase might make a qualitative
difference to someone else's life. It has provided an opportunity for
people to make informed choices on purchasing, choosing products that
have been certified as fairly traded. Its contribution to improving
working conditions of poor farmers and farm hands and its
association with the environmental protection movement is truly
commendable.
The
Fair trade labelling organisations
have said that the total sales crossed $2 billion in 2006, accounting for a 42%
year by year increase.
Despite this double digit growth in the last few years, Fair Trade
remains a niche player, covering less than 0.5% of the total sales of all
commodities world wide. A reason for this is because fair trade organisations
worldwide have focussed on the creation of a brand within the existing market
system. Fair trade has to jostle for space within the current market, amongst
companies who make different claims regarding their products: 'organic, locally
grown, ethical, eco-label, energy efficient' and so on, all tending to target a
very similar kind of ethical informed consumer. While this has greatly enhanced
the profile of FT, it has not greatly changed the power structures of the
market. By appealing to consumers as individuals, companies are able to
strengthen their hold in the market. By selling a “fair trade” line, like Nestle
claimed to do through their "Planter's Blend” of coffee, not only do companies
retain their market share of “non-fairtrade products”, they are able to extend
it to control those consumers who want to see justice in the marketplace. |