Is Fair Trade Fair? Dr. Iain A Davies 19 th June, 2008

Principles of Fairtrade in 2000 Stipulations of Fairtrade Foundation membership: Members or Licence holders cannot be major multinational organisations Members or Licence holders must purchase at least the agreed percentage of their product from certified and audited producers / importers The Use of the term “Fairtrade” may only be used with the express permission of the Fairtrade Foundation

Common Criticism Protectionist / price fixing –Market collusion Destabilising –Brings price down everywhere Not giving as much as is promised –Lies to consumers and to growers Collusion with supermarkets –Corrupted by capitalism Profiteering on morality –Exploitative of ethical consumers Sold out on its principles to avoid being out competed –Rainforest Alliance, Utz Kapeh and the coffee industry’s 4C code

Well intentioned – but under researched?

The Growth of Fair trade Value Introduction/ Craft Solidarity Era Niche Market Era Mass Market Era 1968 Oxfam Introduce fair trade pin cushions from Argentina 1978 Campaign Coffee and the Edinburgh Exchange set up 1992 FtF founded 1989 IFAT founded 1991 Cafédirect founded 1993 Cafédirect gets its first supermarket contract with Safeway's Scotland 1998 Divine founded 1979 Traidcraft founded 2003 CRG Begin own label FT 2005 Nestle Launch Partners Blend 1997/1998 Starbucks first buy fair trade coffee 1985 TWIN founded Source: Davies, 2007

Possible value chain partner selection based of values of the case organisations Distance from fair trade org’s values Growers DistributionManufacture Logistics MarketingRetailers AdvertisingJoint Brands Moral Curtain P1 P2 Importers Forbidden / Taboo Area Allowed partners Uncertain area The Moral Curtain Solidarity Era Niche Market Era Mass Market Era Source: Davies and Crane, 2003, Davies, 2005

The Future of Fair trade Source: Davies, Market Participants AuthoritiesATOsCompaniesBrandersAdopters

Ideology, business philosophy or sustainability? What has fair trade become? What is it going to ultimately be? Who is it supposed to be helping and in reality does it? Is it sustainable? And under how many definitions?