Canterbury District Fairtrade Network

Q. Is there a difference between Fairtrade and fair trade?

A. Yes. "Fairtrade", written as one word with a capital "F", is used on products which have met international standards of Fairtrade and carry the FAIRTRADE Mark. It is also used for campaigns to raise awareness of the FAIRTRADE Mark, such as the Fairtrade Diocese and Fairtrade Town campaigns.

"Fair trade", written as two words, is a broader concept. It refers to the wider campaign to make international trade rules fairer for poor countries. It is also used to describe "fairly traded" products for which international Fairtrade standards have not yet been agreed, eg handicrafts.

Q. Is Fairtrade a brand?

A. No, Fairtrade is not a brand. The FAIRTRADE Mark is registered trademark which is awarded to individual products, not companies, which meet internationally agreed standards of Fairtrade. Some companies, such as Nestlé, have only one product which meets Fairtrade requirements. Others have a range of Fairtrade products, eg Clipper tea. A few, such as Cafédirect, are exclusively Fairtrade and act as Fairtrade's "gold standard".

Q. How do we know that Third World farmers really benefit?

A. Credibility has always been at the heart of the Fairtrade system. In fact, Fairtrade certification was developed precisely to guarantee the credibility of "fair trade" claims. The international Fairtrade labelling network includes an elaborate system of checks and audits to make sure that the Third World farmers actually receive the benefits which are due to them and that Fairtrade certified products really do emanate from Fairtrade sources.

The Fairtrade Foundation is responsible for carrying out the necessary audits in this UK. Its partner organisation, Fairtrade Labelling Organisations International (FLO), carries out the audits in the country of origin and all along the supply chain to the point where the products enter the UK.

Q. Surely it's the supermarkets who are the real beneficiaries of Fairtrade?

A. The Fairtrade Foundation has no power to control the prices which supermarkets charge for Fairtrade products. Indeed, it would be against UK competition law for it to try to do so. What it does do, in conjunction with its partner organisations, is to ensure that Third World farmers receive:

• A guaranteed price for their products;
• A dividend (for projects to benefit the local community);
• Partial advance payments, if required;
• Contracts that allow for long-term planning and sustainable production practices.

Fairtrade products are generally slightly more expensive than their non-Fairtrade equivalents. The difference in price reflects the added benefits to the Third World farmers, the costs of administering the Fairtrade certification system and the increased costs for supermarkets of dealing in relatively small quantities. Some supermarkets, such as the Co-op, also invest considerable sums of money in the promotion of Fairtrade. Others, such as Waitrose, have taken huge steps to help Third World producers in their conversion to Fairtrade status.

On the face of it, the amount which a Third World farmer receives may seem small when considered as a percentage of the final retail price. But for producers, it often represents a doubling or even a tripling of their real income. The final retail price also incorporates the costs of transport, processing, packaging and retailing, most of which occur outside the country of origin.

If you are worried that supermarkets are overcharging for Fairtrade products, raise it with the manager and shop around. Prices vary from one supermarket to the next; and own-brand Fairtrade products are frequently much cheaper than their branded counterparts. As the demand for Fairtrade products grows, the ability of supermarkets to bring down prices increases.

Q. Does Fairtrade disadvantage our own farmers?

A. No. Most Third World commodities, eg tea, coffee, cocoa and bananas, simply don't grow in temperate climates. Many Fairtrade campaigns, including Canterbury's Fairtrade District campaign, encourage support for both Fairtrade and local produce. The two go hand in hand, as the problems facing small-scale farmers in the Third World and in this country have much in common. Perhaps the main exception is that when commodity prices fall, Third World farmers rarely have any state-funded health system or social security system to fall back on.