Is fairtrade fair?

Josh was in a state. He’s the usually bright and cheerful guy who fixes my coffee at my local cafe. Today he was bouncing off the walls, and it wasn’t one to many Short Blacks.



He was excited about his new supply of coffee. But I couldn't see why. It's not tastier. It’s a Robusta bean. Not as appealing as the Arabica variety apparently, although it packs more of a punch.



And it's certainly not cheaper. I was mystified. Why change to a seemingly lesser bean? I’m an important customer, and I demand the best :-)

I confessed my ignorance; he was only too happy to explain. Turns out it's 'Fairtrade' coffee. This means poor farmers in the Third World get a little more in their pockets at the end of the day. The money I pay for my morning hit includes a small subsidy that is passed back to the farmer. The idea is that people can vote with their feet, and choose an ethical coffee that helps the third world at the grass roots.



But is it all it cracked up be?

I don’t think so. I feel the problem stems from people misunderstanding the main cause of low commodity prices. Agricultural products are cheap, not because of coercion by the west (although I expect this comes into it), but because of overproduction.

By propping up the price, the Fairtrade system encourages farmers to produce more coffee, rather than changing to a more lucrative crop. This forces the price down further. Fairtrade achieves the exact opposite of what’s intended.

Sure, buying Fairtrade goods makes rich westerners feel good about themselves, but it screws poor coffee farmers. It’s a classic example of a poorly thought out mass-media idea. It’s bankrupt and makes things worse.

What poor coffee farmers need is free trade. There’s nothing fairer than that.