More Fair Trade News

Following on from my last blog at the start of the week there was an interesting article on the BBC website this week focusing on a recent report from the Fairtrade Foundation.

Many farmers in developing countires are struggling despite recent rises in the price of the commodities that they produce. This is one of the findings highlighted in a new report by the Fairtrade Foundation.

The report that was constructed by interviewing farmers groups in developing countires revealed that families are spending up to 80% of their entire household budget on basic food items.

The rising cost of food, fuel and fertiliser prices have had a significant impact on the daily lives of farmers in developing countries. For example some families have had to cut meals, take children out of school and reduce the amount of land they plant. The report says that fair trade schemes could help their situation. Demand for Fairtrade products has remained strong despite the economic downturn.

There are 450 million small farms around the world and are home to a third of the world’s population. These farmers provide an essential economic function by producing food for local and national consumption and generating export income for the national economy.

Although there has been a rise in the price of export commodities such as vanilla, coffee, tea and sugar they have been outstripped by the dramatic increase in the cost of staple food. For example the price of rice has increased by 40% (rice being a staple product). The Fairtrade Foundation argues that as long as demand is upheld, farmers should be paid a guaranteed price for their products, hence stabilising income and allowing longer term planning.

In the UK demand for Fairtrade products has gone against the economic trend and increased by 43% in the last 12 months. South Arfica is leading the way on the African continent and has established a fair trade market. There is still a risk that the worsening economic climate will hit fair trade products and the time lags involved with comsumers changing their purchasing patterns has yet to occur.

Currently 4,500 products carry the Fairtrade logo and at the start of Fairtrade fortnight (as mentioned in my previous blog) Palestinian Olive Oil was added to the list. 265 olive growers in Palestine will benefit initially.

For full BBC article click here.

The full report from the Fairtrade foundation can also be downloaded as a pdf file.