by Pieternel Gruppen
The fair trade logo has become an increasingly regular sight on supermarket shelves in recent years, and many customers are now familiar with the concept.
Still, opinions vary about what fair trade really means. Some consumers won't buy their trainers if they're put together by children's hands; others feel coffee farmers should get a fair price for their beans.
Environmental concerns and acceptable working conditions are also commonly associated with fair trade.
Many different definitions and interpretations exist, and there is no general standard to determine how "fairly traded" the T-shirt or coffee pack that you buy really is. It all depends on the definition that producers wish to apply. And often, that definition is not made explicit to consumers. It's because Fair Trade is not a registered brand. And so, consumers may buy a product because they see the words 'fair trade', but there is no guarantee that that it deserves that label.
Setting standards
To ensure that both producers and consumers get a fair deal, several quality mark organisations have sprung up. Chief among them in the Netherlands is the Max Havelaar Foundation, which has set a number of conditions for fair trade.
Manufacturers, for example, will only be granted the use of the Max Havelaar hallmark if they guarantee acceptable working conditions, meet environmental standards and allow their workers to organise themselves. In addition, they have to guarantee a fair price for their products.
"We are supporting the weakest groups in trade," a Max Havelaar spokesman explains. "It's fair because at least they get a price which is covering their own production costs, a sustainable price."
Verification
Farmers will receive an additional bonus which they are obliged to invest in social projects, like setting up schools or improving sanitation. So far, Max Havelaar has awarded certificates for bananas, coffee, tea, chocolate, honey, fruit and fruit juices. These commodities are easy to verify because production lines are short, says Joris Oldenziel of the Centre for Research on Multinational Corporations (SOMO).
"For larger commodities, like coffee and bananas, there are quite well-developed systems for checking if the minimum standards are guaranteed. But when it comes, for example, to handicraft, it's a bit more difficult because they work with middlemen and there is no direct contact with the individual craftsmen. So, they still have to develop better methods for monitoring and verifying whether the wages and the prices the craftsmen get for their products are fair, or whether the money stays with the middlemen."
Products that involve a whole string of middlemen are difficult to verify. That does not only apply to handicraft, but also to clothing. A T-shirt goes a long way - from cotton plantation via sewing workshop to wholesalers - before it's finally sold in a fashion shop. Conditions in a clothing factory may meet fair trade standards, but how about the workers harvesting the cotton crop?
Professionalism
At present, fair trade organisations are not equipped to monitor all the steps in the production process. This has prompted a great deal of media criticism in recent years, which in turn has led to moves to make fair trade groups operate more professionally.
SOMO's Joris Oldzenziel says the fair trade movement should at least be credited for putting the issue on the global agenda. He also believes big companies should take over the initiative:
"I think that most people would agree that the fair trade model, as it exists now, will probably not get more than a 10 percent market share. So, what about the other 90 percent?"
Big business
SOMO and other organisations recognise that, ultimately, the fair trade concept won't succeed without the support of big business. And that's where consumers come in, because companies will be more sensitive to the issue when consumer demand picks up.
