4 ms·
The problem is Fair Trade is that it distorts the price signal in the market (obviously, that's the point). But the reason coffee is so cheap is that there is a
by mseebach 13y ago
The problem is Fair Trade is that it distorts the price signal in the market (obviously, that's the point). But the reason coffee is so cheap is that there is an oversupply - artificially raising the prices extends the problem, it doesn't solve it (by making some farmers realise they can compete better by switching crops).
If you want to help, buy expensive, high end coffee - most of it will be Fair Trade anyway, so I can't say "instead of Fair Trade". But getting the default, supermarket brand coffee that's 10% more expensive than the non-Fair Trade option damages more than it helps.
Also, I remember reading somewhere that Fair Trade places some irrelevant constraints on suppliers, such as the size of the supplier. I can't find a reference, so it might be wrong, but if it's not, then that suggests that pandering to western, urban romantic fantasies about rural life plays an inappropriate role in the scheme as well.
- jiggy2011 13y agoI think fairtrade suppliers are all cooperatives. Though in many cases I've found fairtrade brands not to be significantly more expense (sometimes cheaper even) than mainstream brands of similar quality.