Economics of Development : Fair Trade
Evidence in Development: Does Fair Trade support development?
Fair Trade is a charitable organisation that was founded in 1992 in order to promote sustainable production whilst fulfilling the farmer’s full potential in a fair and ethical way. Fair Trade have become a successful and well-known brand in a relatively short space of time, with Fair Trade products being sold in more than 125 countries and UK figures on Fair Trade sales reaching £1.5 billion in 2012.(Fair Trade ) Part of the reason Fair Trade has been so successful is the way it entices consumers with its positive message of helping the disadvantaged producers and creating wholesome, organic food. Fair Trade produce often comes with a higher price tag than normal, with bananas on average costing on average £1.20 for 6, and non-Fair Trade bananas costing £1.00 for 10. Despite this, 1 in 3 bananas sold are Fair Trade and 44% of bagged sugar sold is also Fair Trade, this shows that people are often willing to match the higher price tag when a product is more ethically produced. (Fair Trade Statistics)
Caroline Joseph Doran writes of the ethical value of buying Fair Trade in her journal ‘The Role of Personal Value in Fair Trade Consumption.’ 2009. Doran focuses on the role of the consumer on Fair Trade success, the dissatisfaction about the ‘financial return’ given to the producer and the benefits that Fair Trade has on the livelihood of the producer make it the more appealing choice for the consumer. The increase on healthcare, financial stability and education are all driving forces for the purchasing of Fair Trade products, especially as the consumer relies less on the middleman and more on the direct financial advantage of the purchase. With the USA currently containing 35,000 Fair Trade retailers, it is no surprise that the sales of Fair Trade have increased by 20% since 2000. This has benefitted an estimated 1.3 million people. Doran also highlights the problems faced by Fair Trade consumers and
Fair Trade is a charitable organisation that was founded in 1992 in order to promote sustainable production whilst fulfilling the farmer’s full potential in a fair and ethical way. Fair Trade have become a successful and well-known brand in a relatively short space of time, with Fair Trade products being sold in more than 125 countries and UK figures on Fair Trade sales reaching £1.5 billion in 2012.(Fair Trade ) Part of the reason Fair Trade has been so successful is the way it entices consumers with its positive message of helping the disadvantaged producers and creating wholesome, organic food. Fair Trade produce often comes with a higher price tag than normal, with bananas on average costing on average £1.20 for 6, and non-Fair Trade bananas costing £1.00 for 10. Despite this, 1 in 3 bananas sold are Fair Trade and 44% of bagged sugar sold is also Fair Trade, this shows that people are often willing to match the higher price tag when a product is more ethically produced. (Fair Trade Statistics)
Caroline Joseph Doran writes of the ethical value of buying Fair Trade in her journal ‘The Role of Personal Value in Fair Trade Consumption.’ 2009. Doran focuses on the role of the consumer on Fair Trade success, the dissatisfaction about the ‘financial return’ given to the producer and the benefits that Fair Trade has on the livelihood of the producer make it the more appealing choice for the consumer. The increase on healthcare, financial stability and education are all driving forces for the purchasing of Fair Trade products, especially as the consumer relies less on the middleman and more on the direct financial advantage of the purchase. With the USA currently containing 35,000 Fair Trade retailers, it is no surprise that the sales of Fair Trade have increased by 20% since 2000. This has benefitted an estimated 1.3 million people. Doran also highlights the problems faced by Fair Trade consumers and