How Does This Compare with Fair Trade?
Fair Trade Certified is an alternative marketing system for farmers. Along with Farmers First, Fair Trade seeks to help disadvantaged farmers earn a fair price. However, while Farmers First and Fair Trade have similar goals, the methods for achieving those goals are quite dissimilar. At Farmers First, we believe that makes all of the difference.
Different Approaches, Different Outcomes. Look around you. In all of life's activities there are a variety of approaches we humans take to meet our needs and goals. While it could be argued that these various approaches all have their merits, history has shown that some achieve better results than others.
Take government, for instance. The founders of America saw greater opportunity through a democratic process than under the rule of a monarchy. Now, years later, under that democratic and free system the United States stands as an economic entity unmatched in world history. By investing in its individual citizens, the whole country benefited. And for all its faults, this success has enabled the US to greatly impact social change for its citizens and the world.
This is just one example of how a different approach that invests in the individual can have a very different and powerful outcome for the whole.
The Power Of Freedom. Farmers First differs from Fair Trade in a similar manner. While in theory both approaches aim to assist farmers with better prices in the world market, only one allows for greater prices and income to be paid directly to the farmer -- Farmers First.
While in fact both approaches do help communities make improvements, only one allows for ground-sweeping change -- Farmers First. The reasons boil down to the power of the open market and, more importantly, the ability for farmers to truly make decisions for themselves and their communities.
The Fair Trade Model. According to Transfair USA documentation (the governing body for most fair trade certification), Fair Trade seeks to guarantee: a fair price; quality products; and care for the environment. While these are worthy goals that have seen some progress, it's also worth noting the following about Fair Trade's approach:
- Cooperatives. Under Fair Trade, farmers must assemble under a single cause usually know as a "cooperative" or "co-op." In theory, these provide more negotiating power, like unions, but they also prohibit farmers from making individual choices.
- Centralized Decisions. Under Fair Trade, co-ops are designed to include a democratic process where farmers vote on major decisions. In actuality, the cooperatives have decisions about pricing and process decided for them by Transfair and FLO (the Fair Trade Labeling Organization). Further, group decisions about money distribution are rarely centered on the needs of individual farmers.
- Fixed Prices. The "fair trade" pricing for coffee is $1.26 per pound. It's been this price for years. While this is indeed a fair price paid to the cooperative, it's unclear how much is directly paid to the farmer. Plus, as a fixed price, neither the cooperatives nor the farmers will make more than that. This undercuts most of the incentive to produce premium crops.
- Money Distribution. The "fair trade" price (e.g. $1.26 per pound) ends up in the hands of the cooperatives first, then into the hands of the farmers. Although some of the money does good by sending children to schools, improving roads, and building medical facilities, a large portion goes toward keeping the co-ops going. In the end, the farmers still receive less money.
- Transparency. While Fair Trade stresses that not enough transparency exists in business transactions with farmers, where the money goes from the co-ops to the farmers is remarkably unclear. Transparency under the Fair Trade model shows that companies pay $1.26 per pound, but it doesn't show what happens to the money from there.
- Quality. Efforts to encourage artisanal farming methods and environmental concern are worthy of praise. At the same time, under Fair Trade there are no regulations as to the quality of products. The main focus is on getting a fair price for farming cooperatives (not to the farmers themselves), and not as much on producing quality crops that actually deserve a fair price.
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