Have you ever wondered how Fairtrade came into existence? If so then this is the place to find out…..
Fairtrade started out in response to the commodity price of coffee collapse in 1989. Prior to this the International Coffee Pricing Agreement had kept the price stable. However companies soon realised that they could get cheaper beans on the free market, so the Agreement was dissolved. This was good news for farmers in Vietnam who were able to offer cheap coffee thus collapsing the market.
The knock-on effect for the farmers in other parts of the world was a decline in income by around 20%. They were left in poverty and consequently their childrens education and quality of life dropped significantly. In response the Fairtrade movement was was borne.
1994 saw the first Fairtrade labelled coffee go on sale. Since then the diversity of products has increased to include footballs, wine, bananas and tea. The next area to be developed is textiles and clothing. The benefit to the farmers is that they receive a stable price which is above that they would get on the free market. So everyone is happy!
One point to mention is that Fairtrade does not necessarily mean organic. The organisation does offer a higher price for organic products and as a prerequisite sustainable farming techniques must be used.
I hope this clears up a few questions you may have had.
