Where Now for Fairtrade?

Monday February 25 2019

Thomas Baldwin reflects on the impact of social and political change on the Fairtrade movement.

Rachel Farey is in no doubt about the benefits of Fairtrade.

“There is a group called TARA, based in Delhi, that work with a lot of poor communities. We visited a few of their projects – health projects in the slums, schools - and in one school the teacher explained how her children in that school have now gone to university and are teachers themselves.

“That’s purely through the funding of TARA, running that school from funds provided by Fairtrade producers. And that story could be multiplied thousands of times across India and Bangladesh.”

Fairtrade – the movement which promises developing world farmers and producers a fair price for their products, with the money reinvested in their communities – has been part of the landscape for around 40 years.

Although the movement generates scepticism from some quarters about exactly how much of a difference it makes, commercially it has become a huge success: developing from being a small niche, tea and coffee sold entirely through charity shops and stalls, to influencing the behaviour of major brands and supermarkets.

Which is why it came as a surprise in autumn last year when Traidcraft – the highest-profile and one of the oldest Fairtrade groups, for many people synonymous with the whole movement – first announced that it was ceasing trading then, after a burst of support, that it would continue in a much reduced form.

“It was shock – shock and sadness,” says Rachel, who is the business manager of the One World Shop in Edinburgh. “The shop has been trading 35 years and we started with their products. We have a very close relationship and have done all along.”

Traidcraft’s problems stem partly from universal problems – specifically the weak pound, driven by brexit-related uncertainty – and others specific to the company, including a pension deficit and a delayed website which cost it sales. It made losses of about £500,000 last year

Robin Roth, the company’s chief executive, argues that the changes are actually ‘long overdue’. “We are going through a classic business restructuring, to manage costs in line with income,” he says.

That includes outsourcing functions such as importing and warehousing, which the company has previously done for itself. The restructuring will involve drastically slimming the organisation down to about 12 employees (from 68) and also dropping product lines such as crafts which Robin says are ‘almost impossible to do profitably’.

There is a sense that Traidcraft has partly been a victim of its own success: in encouraging people to take notice of ethical trading, they forced the large multinationals to take note. But those multinationals then introduced their own Fairtrade-accredited products, taking custom away from the likes of Traidcraft.

“The marketing strategy of Traidcraft was always slightly weird in the past,” says Robin. “We encouraged our customers to go to supermarkets to buy Fairtrade goods because we wanted to create consumer demand in the general public.

“This is in no respect a criticism of decisions taken by the Fairtrade movement in the past,” he adds. “Getting Fairtrade into the mainstream was a good thing to do, but the consequences are not controllable.

“It’s been a fantastically successful idea, but supermarkets do not like to not have control, and their power is immense. The fact that we got them to even acknowledge Fairtrade was relevant is amazing – Traidcraft has influenced a generation, and there aren’t many companies that can make that claim.”

Looking forward, Robin says that Fairtrade organisations need to focus on the more complex world they are now working in, where helping producers look after their land and mitigate the effect of climate change are just as important as paying them a fair price.

Traidcraft’s sister charity, Traidcraft Exchange, works with producers on sustainable growing, and it’s that work consumers can support by buying Traidcraft products. But Robin also says we still need to put pressure on the big companies.

“I think if you want to ensure there are companies who are doing it right in the future you need to support them actively. The multinationals who dominate the food industry are not scared of governments, they are scared of consumers; and what they’re really scared about is customers who spend money somewhere else.

“If you make an active decision to support a company like Traidcraft you change the way trade is done.  Be a citizen, don’t be just a consumer.”

What there doesn’t seem to be any doubt about is the commitment to Fairtrade in Scotland, which became one of the first Fairtrade nations in 2014. Martin Rhodes, the chief executive of the Scottish Fair Trade Forum, an umbrella group of Fairtrade traders, is bullish about the future. He says: “Fairtrade businesses and campaigners need to face up to the current challenges, but it isn’t a time to become dispirited. Sales of goods with the Fairtrade Mark increased in the UK last year by 7% according to independent research.

“Fairtrade has always had to challenge a very powerful global trading system. This was never going to be easy but we continue to challenge global inequality and the unfair imbalance in trading relations. Now as much as ever, we need to challenge injustices – people are looking for a better way of doing trade that can be beneficial to all involved. We need to offer that alternative.”

This is reinforced by the Church of Scotland and other faith groups who have long been enthusiastic backers of Fairtrade. The Rev Dr Richard Frazer, convener of the Church of Scotland’s Church and Society Council, says that should continue: “Fairtrade is important to church communities because it reflects the message of justice and peace we find in the Bible. It is a reflection of the justice we seek in the world, and is a practical way to bring about an economy built on equality. We look forward to a day where all trade is fair, where everyone gets a fair price for their product, and until then we will continue to support Fairtrade.”

Fairtrade Fortnight starts today (Monday February 25), and nationally is focussing on cocoa, in particular the impact that low prices have on female cocoa producers. More information and resources from the Fairtrade Foundation.

In Scotland, there are community events taking place all over the country. There will be visits from two fairtrade producers: Aimable Nshimiye, Managing Director of the Sholi Cooperative, a group of coffee producers from the Muhanga District of Rwanda; and Palestinian Fairtrade farmer Khader Khader and Zaytoun’s Palestine Advocacy Officer, Taysir Arbasi, who will be celebrating the 10^th anniversary of Zaytoun, the first Fairtrade (Palestinian) olive oil going on sale in the UK. More information and an events calendar from the Scottish Fair Trade Forum.

A longer version of this feature appears in February's Life and Work. Download or subscribe here.