Story Tools: PRINT | Text Size: S M L XL | REPORT TYPO | SEND YOUR FEEDBACK

In Depth

Fair trade

An alternative economic model

Last Updated April 23, 2007

Canadians consume more than 40 million cups of coffee a day. (CBC)

Globalization. Its supporters say it's opening up world markets to producers from Montreal to Maputo. Its detractors claim globalization does little more than allow producers to acquire their goods from developing countries by exploiting desperately poor people.

But there's a growing movement dedicated to making sure that producers in developing countries are paid a fair price for the goods we consume.

Called fair trade, it's a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been disadvantaged or marginalized by the traditional economic model.

Take coffee, for instance. Canadians consume more than 40 million cups of the stuff a day – an average of about 2.6 cups daily for each coffee drinker. According to figures from the Canadian Coffee Association, 63 per cent of adult Canadians drink coffee on a daily basis.

No, not all of it is bought at retail coffee or doughnut chains. Almost two-thirds of the coffee Canadians drink is consumed at home. That means most of us buy it regularly at places like supermarkets or specialty coffee chains.

The vast majority of the coffee we buy comes from producers who are paid about 54 cents for a pound of beans – or about 11 cents for every dollar spent by the coffee-consuming public.

Under fair trade arrangements, less money goes to "middlemen" and more goes to the coffee grower. They receive about 28 cents for every dollar spent by the coffee-consuming public.

The appetite for fair trade coffee has grown to the extent that several major supermarket chains and specialty coffee shops now carry the product. In 1998, more than 21,500 kilograms of fair trade coffee was sold in Canada. By 2004, Canadians bought more than 940,000 kilograms of the product. Over the same period, sales had jumped to $28.2 million from about $649,000.

Globally, fair trade sales have soared during the past decade. In Europe, sales of fair trade products hit about $950 million in 2005 — up 154 per cent in five years or a rate of growth of about 20 per cent a year.

On April 17, 2007, Wolfville, N.S., became Canada's first fair trade town.

Wolfville Mayor Bob Stead said when the town council was discussing the proposal of becoming a fair trade town, local producers were suffering with the closure of poultry and pork processing plants. He noted that if the town planned on committing itself to supporting farmers in developing countries, they should also back farmers in their own town.

"We'll emphasize [fair trade's principles] locally as it applies to 'buy local' and try to support our local farmers who are sometimes in some jeopardy in terms of market survivability," Stead said.

Garstang in the U.K. became the world's first fair trade town in 2000. Since then, hundreds of towns across Europe have been certified by Transfair, the agency that monitors fair trade goods in Canada.

What are the origins of fair trade?

The fair trade movement has its roots in the United States in the mid-1940s. A group known as Self Help Crafts began buying needlework from artisans in Puerto Rico. By 1958, Self Help Crafts – which would later become the North American chain Ten Thousand Villages – opened its first "fair trade" shop.

In Europe, Oxfam UK began selling crafts made by Chinese refugees in the 1950s. In 1964, Oxfam UK started the first fair trade organization. Three years later, Fair Trade Organisatie was established in The Netherlands. Around the same time, groups in developing countries that had been Dutch colonies began to sell cane sugar that included the message "By buying cane sugar you give people in poor countries a place in the sun of prosperity."

In 1973, Fair Trade Organisatie imported the first "fairly traded" coffee from a farmers' co-operative in Guatemala. That was later expanded to include food products like tea and cocoa.

What are the benefits of buying fair trade products?

Under fair trade arrangements, less money goes to "middlemen" and more goes to the producer, usually an independent farmer, member of a small co-operative or an artisan. You know that more of your money is helping to improve the incomes of regular people.

Isn't that just helping a small number of producers in developing countries?

Yes – and no. Under fair trade agreements, there are mechanisms in place that divert some of the money earmarked for producers to the wider community. So some of the money goes to building schools and improving infrastructure – and not just enriching a small number of producers.

Are fair trade products more expensive than conventionally produced products?

They can be. But you are buying a premium product. If it's a piece of clothing, you will know that it was handmade and not stitched in a sweatshop. In the case of coffee or tea, you can be assured that it was not grown and processed on a factory farm.

How do I know if a product I buy is a fair trade product?

Read the label. If it says "Fair Trade Certified," the product has met standards set by Fairtrade Labelling Organizations International. FLO, which was set up in 1997, guarantees that products sold with a Fairtrade label conform to Fairtrade standards and contribute to the development of disadvantaged producers and workers.

In Canada, TransFair independently audits and certifies fair trade goods. But not everything that carries some form of fair trade label has received official certification. In 2006, more than 450 tonnes of coffee sold in Canada with fair trade labels were not officially certified. That has fair trade advocates calling for tougher rules.

Jeff Moore, who founded the country's first fair-trade coffee co-operative, Just Us in Grand Pré, N.S., wants Industry Canada to protect the term. He says that the federal government should regulate certification. Federal regulations would mean that companies wanting to use a fair trade label would be subject to mandatory rules or face fines.

What are the key elements of fair trade?

  • The producer is paid a fair price which covers not only the costs of production but enables production which is socially just and environmentally sound.
  • Helps develop a producer's ability to remain independent.
  • Helps provide a safe and healthy working environment for producers. Children are not to be exploited as cheap labourers.
  • Women's work is properly valued and rewarded.
  • Encourages better environmental practices and responsible methods of production.

What other fair trade products are available?

The list is growing beyond coffee, tea, cocoa, clothing and crafts. In April, Florimex, a B.C.-based company began importing fair trade certified roses from Kenya. The company is the first in North America to import fair trade cut flowers. Most cut flowers are imported from Latin America and East Africa, where they are grown in huge greenhouses. The workers – mainly women – are exposed to a range of chemicals that keep the flowers looking fresh.

Go to the Top

Story Tools: PRINT | Text Size: S M L XL | REPORT TYPO | SEND YOUR FEEDBACK

World »

Karzai, Musharraf target Taliban
The leaders of Afghanistan and Pakistan have begun a two-day meeting to talk about co-operating in the fight against insurgents based in the lawless border area between the two countries.
December 26, 2007 | 4:16 PM EST
Couple arrested in deaths of 6 people in rural Washington
A man and a woman have been arrested in connection with the killing of six people believed to be family members at a rural property east of Seattle.
December 27, 2007 | 12:19 AM EST
French aid workers convicted of taking Chadian children
Six French aid workers have been sentenced to eight years' forced labour by a court in Chad for trying to abduct children from the African country.
December 26, 2007 | 2:31 PM EST
more »

Canada »

Canadians flock to Boxing Day bargains
Millions of Canadinas took part in the Boxing Day bonanza on Wednesday, although shopping malls may have been less crammed with bargain hunters this year.
December 26, 2007 | 11:32 AM EST
Dozens of carcasses discovered at Quebec quarry
Police and wildlife officers are investigating the discovery of dozens of pig, fox and coyote carcasses at a Quebec gravel quarry.
December 26, 2007 | 6:32 PM EST
Homolka's prison boyfriend could be freed in '08
A convicted killer, said to have had a relationship with Karla Homolka while the two were behind bars, could be released from a Quebec prison early in 2008.
December 26, 2007 | 8:20 PM EST
more »

Health »

Honey-drenched dressings touted as the bee's knees for wounds
Amid growing concern over drug-resistant superbugs and nonhealing wounds that endanger diabetes patients, nature's original antibiotic ? honey ? is making a comeback.
December 26, 2007 | 12:30 PM EST
Boxing Day dips wash away holiday excess, Europeans insist
Across Europe, people celebrated Boxing Day by diving into rivers, lakes and even oceans that challenged the threshold of humans' temperature tolerance.
December 26, 2007 | 3:16 PM EST
Woman's death marks 16th bird flu fatality in Egypt
A 25-year-old Egyptian woman has died of bird flu after she apparently contracted the disease from domestic fowl, a health official said Wednesday.
December 26, 2007 | 4:26 PM EST
more »

Arts & Entertainment»

Canadian jazz great Oscar Peterson dies
The jazz odyssey is over for Oscar Peterson: the Canadian known globally as one of the most spectacularly talented musicians ever to play jazz piano has died at age 82.
December 24, 2007 | 5:17 PM EST
Tributes pour in for 'giant in music' Peterson
Tributes are pouring in for Canadian jazz musician Oscar Peterson, who died Sunday at age 82.
December 26, 2007 | 2:49 PM EST
Broadway, Hollywood choreographer Michael Kidd dies
American choreographer Michael Kidd, who created dance for the stage musical Finian's Rainbow and the movie Seven Brides for Seven Brothers, has died.
December 26, 2007 | 11:41 AM EST
more »

Technology & Science »

Weather odds could become the norm
As man-made climate change continues, the world will experience more extreme weather, bursts of heat, torrential rain and prolonged drought, scientists say.
December 26, 2007 | 2:17 PM EST
Yellowknife looks to old mine for geothermal energy
The N.W.T. capital will soon begin studying what could become Canada's first large-scale geothermal heat plant. Experts say heat from the defunct Con gold mine could supply enough power to serve half of the city's residents.
December 26, 2007 | 12:18 PM EST
Toyota announces plan to sell 9.85 million vehicles in 2008
In a neck-and-neck race that could dethrone General Motors as the world's top automaker, Toyota said it plans to sell 9.85 million vehicles globally in 2008.
December 26, 2007 | 12:10 PM EST
more »

Money »

Canadians flock to Boxing Day bargains
Millions of Canadinas took part in the Boxing Day bonanza on Wednesday, although shopping malls may have been less crammed with bargain hunters this year.
December 26, 2007 | 11:32 AM EST
U.S. house prices drop by a record 6.7 per cent
House prices in the United States fell in October for the 10th consecutive month, posting their largest monthly drop since early 1991, a widely watched index showed Wednesday.
December 26, 2007 | 4:13 PM EST
Apple Inc. shares reach $200 on core strength of IPod
Shares of Apple Inc. hit the $200 mark for the first time Wednesday as investor confidence in the company continued rising near the end of what has been a strong year for the IPod and computer maker.
December 26, 2007 | 3:30 PM EST
more »

Consumer Life »

Canadians flock to Boxing Day bargains
Millions of Canadinas took part in the Boxing Day bonanza on Wednesday, although shopping malls may have been less crammed with bargain hunters this year.
December 26, 2007 | 11:32 AM EST
Boxing Day purchases in cars easy prey for thieves: police
Vancouver police are advising Boxing Day shoppers not to leave newly-bought items in parked cars because they're easy prey for thieves.
December 26, 2007 | 9:41 AM EST
U.S. house prices drop by a record 6.7 per cent
House prices in the United States fell in October for the 10th consecutive month, posting their largest monthly drop since early 1991, a widely watched index showed Wednesday.
December 26, 2007 | 4:13 PM EST
more »

Sports »

Scores: CFL MLB MLS

Leafs lose Islander game, Toskala
Mike Comrie scored with nine seconds left in overtime as the New York Islanders topped the Toronto Maple Leafs 4-3 in a game where both clubs resorted to using their backup goaltenders.
December 27, 2007 | 12:23 AM EST
Senators cool off surging Sabres
Dany Heatley notched three points ? including an empty-net goal ? for the Ottawa Senators as the Eastern Conference leaders snapped the Buffalo Sabres' six-game winning streak with a 5-3 road win Wednesday night.
December 26, 2007 | 11:49 PM EST
Tavares leads Canada
John Tavares scored twice in his world junior championship debut and goaltender Jonathan Bernier earned the shutout as Canada opened the tournament Wednesday with a 3-0 win over host Czech Republic.
December 26, 2007 | 5:56 PM EST
more »