Consumer Voices Fair Trade Success Comes Down To Perceptions

Overath wants Fairtrade’s push for ethical standards in farming to become a global battle cry for more equitable production chain. His plan? Get the logo known, one community at a time.

In Germany that means Fairtrade Towns, which began in 2009 and now include 500 towns. The crux of the campaign calls on Germans to pledge to “think globally, act locally” and commit to support fair-trade standards.

But even in activist Germany it has been difficult to make the fair trade concept ubiquitous, despite the public’s keen awareness of the issues surrounding social and environmentally friendly production and trade.

Part of the problem, according to academic researchers, is that fair trade proponents have yet to deliver on promises of substantial change for low-income producers on small farms in Africa.

A four-year study by leading development economists at the University of London’s School of Oriental and African Studies found that Fairtrade certification did not significantly improve the lives of workers on fair trade farms.

“This research was unable to find any evidence that Fairtrade has made a positive difference to the wages and working conditions of those employed in the production of the commodities produced for Fairtrade-certified export in the areas where the research has been conducted,” said the report, which was funded by the British government’s Department for International Development. The report examined the economic impact of fair trade production in African countries with large populations of low-income workers.

“In some cases, indeed, the data suggest that those employed in areas where there are Fairtrade producer organisations are significantly worse paid, and treated, than those employed for wages in the production of the same commodities in areas without any Fairtrade certified institutions … ” the report concluded.

“At the very least, this research suggests that Fairtrade organisations need to pay far more attention to the conditions of those extremely poor rural people – especially women and girls – employed in the production of commodities labeled and sold to ‘ethical consumers,’ who expect their purchases to improve the lives of the poor,” the report said.

Fairtrade initially said that it had “welcomed” the research, but went on to criticize the report’s methodology, and to accuse the authors of bias. Fairtrade went so far as to issue  “a vague threat of legal action,” according to a statement by the report’s authors, who defended their research methods and cited surveys of earlier research on Fairtrade that similarly showed no significant impact on working conditions.

In Germany the promise of fair trade has translated into rising sales for Fairtrade certified goods. Overath said that partnerships with discount supermarkets are highly successful, and spread awareness of Fairtrade values. As discount stores account for nearly 50 percent of food sales nationwide, with 92 percent of all people living in Germany going to a discount store once a week, these partnerships have proven themselves as vital to Fairtrade’s expansion into the German market.

Fairtrade Germany relies on a wholly-owned subsidiary, FLOCERT, to protect farmers abroad. The body, which Fairtrade describes as independently governed, is tasked with making sure producers receive a fair share of money paid to the cooperative as long as they meet Fairtrade’s standards. Most of FLOCERT’s staff – traders, importers, cooperatives and licensees — lives in producer countries.

Overath explained that cooperatives are supposed to decide collectively how to spend the Fairtrade premium.

“Our control is only to make sure there is a common decision and that the projects decided upon are actually put into action,” said Overath. “We don’t interfere. They can even decide to have a football field.”

But that promise is also the challenge: While they’re aware of the Fairtrade promise of ethical practices, German consumers have also heard stories that disturb them.

At a market in Cologne, a shopper named Anna said it’s important to support small farmers in developing countries and protect them from land-grabbers. And that’s why she was less confident in Fairtrade’s ability to deliver on its promises.

“I have heard inspections are often announced beforehand. It’s often but not always, so everything is quickly cleaned and the kids who potentially work in the fields are sent home. Everything is checked, it’s deemed good, and the Fairtrade logo stays,” she said.

“Fairtrade is essential for consumers because they know who produced their products,” she explained. “It is also beneficial for producers. It gives them a real space to sell their products and the objective is that they can have the means to live the life they want and guide the trading process.”

French enthusiasm for the Fairtrade brand was on display at the event in Paris. Passersby tried coffee and chocolate sourced from producers around the world and participated in activities designed to educate the public about the organization’s mission.

Elsa Bonnet said purchasing fair-trade products is a good way for Europeans to remember who makes their favorite items.

“I feel like I’m making a responsible gesture that will do something good for this world. I feel like a responsible citizen and I think of the people who are behind this label and I am happy to buy something that will help them,” she said.

Flavia Hofstetter, a working mother in her mid thirties, agrees with Bonnet, except for the pinch of the price tag.

“I feel better but poorer sometimes because it’s not always easy to buy [fair trade] because the products are a lot more expensive and it can be complicated sometimes,” she said.

As a third-party certifier for more than 1,000 U.S companies, Fair Trade USA and its partnering certification bodies audit and certify supply chains, ensuring product compliance with Fairtrade International standards covering fair prices, wages and working conditions, along with sustainable farming practices to limit chemicals and protect the environment.

Fair Trade USA has historically focused on improving pay and working conditions in developing countries with the fewest legal protections, but has recently expanded programs to the Global North. Wholesome Harvest, a tomato farm in Amando, Arizona, is one such project paving this expansion. Because Fair Trade USA broadened certification eligibility to more estates, plantations and small-scale farms that are not organized into a co-op, their overall outreach differs from Fairtrade International, which restricts eligibility and focuses on particular crops and sectors.

This series was produced in collaboration with Journalists for Transparency, with support from Transparency International, the global anti-corruption organization.