Home
/
RELIGION & LIBERTY ONLINE
/
Acton University: Why Fair Trade isn’t fair
Acton University: Why Fair Trade isn’t fair
Aug 8, 2026 12:42 PM

Imagine: You are in the grocery store, searching for the perfect bag of coffee- not too expensive, but still rich in flavor and good quality. As you are turning away with the coffee you have just chosen, there on the shelf is a bag of coffee with the Fair Trade logo. After an intense internal debate, you return the first bag of coffee to its shelf and take the Fair Trade coffee with a sense of contentment. The coffee farmers in third world countries are a little better off today because of your purchase. Right?

Economist Victor Claar shed light on this question in his talk at Acton University. He analyzed the stated purposes of Fair Trade, the state of Fair Trade today, and the results of the Fair Trade initiative. He began the lecture by explaining the coffee market to a classroom that included economists, an African coffee farmer, and other good-hearted citizens.

The economic decision associated with choosing coffee plants requires considerations of risk and reward, particularly for farmers of third world nations. As Claar explained, arabica coffee beans brew the best coffee and are thus favored by customers. Although they are more profitable for farmers to grow, they represent an economic risk, particularly for third world farmers. Arabica plants take several years to mature and are delicate and easily damaged.

In addition, coffee farmers face an even higher element of risk, one they cannot control: the wrath of Mother Nature. Claar explained in his lecture that “there are four reasons for a spike in the coffee market: One, bad weather in South America. Two, bad weather in South America. Three, bad weather in South America. And four, you guessed it, bad weather in South America.” The volatility of the coffee market means that many third world farmers rely heavily on a steady climate to determine the success or destruction of that year’s crop.

Given these factors, the Fair Trade initiative, which provides small-scale coffee farmers with direct access to the world market, seems to be a productive and charitable idea. Yet the World Fair Trade Organization is not all it seems to be.

Prior to the second half of the twentieth century, Brazil was the only major producer of coffee beans. The country used valorization to make a greater profit: the Brazilian government would burn a percentage of the crop in order to raise the prices of the heavily-demanded product. In the 1950s, Colombia emerged as a petitor in the coffee market. By the 1960s, enough nations were entering the coffee market, and employing destructive measures to make economic profit, that the United Nations intervened with the International Coffee Agreement of 1962. The ICA introduced maximum production ceiling for coffee for each participant country. Although the ICA has been ratified six times since its conception, Claar argued that, the Agreement essentially collapsed in the 1990s.

In the wake of the ICA, the World Fair Trade Organization appeared. Under the guise of a benevolent savior of the poverty-stricken coffee famers of the world, Fair Trade has been, in reality, a series of attempts to keep the poor farmers of third world nations in poverty.

There are several Fair Trade secrets that Claar employed to support this claim. Even “unfair” coffee may originate from Fair Trade farms. Some coffee bags and products e from Fair Trade farms do not have the logo to identify them.

Ironically, majority of Fair Trade es from wealthy nations, because they are able to pay the fees and make a profit to grow their farms. Fair Trade gives their suppliers an average of an extra $0.20 on the global average purchase price, but it is costly to join, and remain a member of, the Fair Trade network. The Fair Trade minimum that kicks in when the market bottoms out is just barely enough to pay the dues, but not enough to bring families out of poverty. This is where the World Fair Trade Organization truly does the opposite of what it is meant to do. Farmers on the poverty line make just enough money to remain a part of the network, but the annual Fair Trade fees keep the poor in poverty.

The initiative also utilizes social capital to further their profit. Fair Trade recognizes that, if they portray themselves as a charitable organization that helps pluck poor farmers out of destitution, the charity of the human heart will encourage coffee drinkers to buy products with the Fair Trade logo. The consumers will see this purchase as more than a cup of coffee, but an act of justice or charity aiding the poor farmers.

So what can we possibly do? Claar’s solution for the Acton University attendees is simple: when you find yourself in the coffee aisle, buy the brew you like best and that fits your budget. This conclusion was supported by an African coffee farmer who was an attendee of the lecture. The gentleman thanked Claar for revealing the truths about Fair Trade, stating that the hard working farmers of the world need the support of individuals around the world to buy their products. Organizations like Fair Trade do more harm than good for hard working farmers around the globe. So the next time you find yourself at the store for your next cuppa’ joe, follow both your heart and your wallet to find your favorite brew.

(Photo source: )

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The Unbearable Cruelty of Banning Blankets for the Homeless
Does the city of Pensacola, Florida care more about fort of cats than the dignity and safety of human beings? That certainly seems to be the case. Last week, a local news warning suggested that residents bring pets inside to protect them from cold temperatures. But the city prohibited its homeless population from covering themselves to keep out the cold. The Pensacola ordinance said a person may not be “adjacent to or inside a tent or sleeping bag, or atop...
Why is George Washington the greatest president?
Sometimes I recoil a little when somebody declares that there can be an American president greater than George Washington. Henry “Light-Horse Harry” Lee declared Washington, “First in the hearts of his countrymen.” Washington is great for many things, but perhaps he is greatest for the manner in which he surrendered power not once but twice. One of the best mentaries written on Washington is David Boaz’s, “The Man Who Would Not Be King.” In the piece from 2006, Boaz wonderfully...
Young Evangelicals: 5 Reasons Libertarianism And Christianity Are Compatible
While acknowledging that the Bible is not a book of political theory, a recent panel hosted by The Institute for Faith, Work and Economics asked whether or not Christianity and libertarianism patible. The panel, moderated by former Acton Institute intern Elise Amyx, was made up of young evangelicals eager to tackle the question. They came up with 5 reasons that Christianity and libertarianism were patible. 1. Christianity Celebrates Voluntary Action, Value Creation Jacqueline Otto Isaacs, a blogger at Values &...
Religious Shareholders Want to Shut Down Political Debate
Harvard students a century or so ago joked that Professor Irving Babbitt’s distaste for Jean-Jacques Rousseau was so fervent that he checked under his bed each evening to make sure the 18th century French philosopher wasn’t hiding there. In this humorous vein, one could apply the same fear held by progressive activists for the dreaded brothers Koch – Charles and David. Not only do activists check under their respective beds, but as well their closets, attics, basements, cookie jars and...
Prophets in the Workplace
In the latest issue of The Living Pulpit, Presbyterian pastor Neal Presa reviews Flourishing Churches and Communities, Charlie Self’s Pentecostal primer on faith, work, and economics. Presa heartily mends the book, emphasizing that Self provides a theological framework that not only challenges the church, but points it directly to the broader global economy: Flourishing Churches and Communities is a e addition to recent books in my own Reformed tradition on an integrated and holistic theology of work, from the likes...
Dagger John in the History of Liberty
Today at Ethika Politika, I take issue with Rod Dreher’s “Benedict Option,” a term inspired by the last paragraph of Alasdair MacIntyre’s book After Virtue. The basic idea is that, due to the Enlightenment, we have lost the social conditions — in particular a shared moral and religious narrative — that make virtuous living an intelligible and shared social standard. Thus, MacIntyre claimed, “What matters at this stage is the construction of local forms munity within which civility and the...
George Washington: Champion of Religious Liberty
For George Washington’s birthday,Julia Shaw reminds usthat the indispensable man of the American Founding was also an important champion of religious liberty: All Presidents can learn from Washington’s leadership in foreign policy, in upholding the rule of law, and—especially now—in the importance of religion and religious liberty. While the Obama Administration claims to be modating” Americans’ religious freedom concerns regarding the Health and Human Services (HHS) Obamacare mandate, it is actually trampling religious freedom. President Washington set a tremendous example...
Is Prison Now An American Industry?
Last week on the Acton PowerBlog, Anthony Bradley raised the issue of the war on men, specifically the high rate of imprisonment among men in the United States. At one point in time, America acknowledged that prison might be a place of rehabilitation rather than simply the warehousing of criminals (read Ray Nothstine’s work on Angola Prison to see that rehabilitation in prison is possible.) Catholic blogger Mark Shea interprets the high rate of imprisonment as a sign of the...
Audio: Rev. Robert A. Sirico on the Problem of and Solutions to Poverty
Rev. Robert A. Sirico, president of the Acton Institute, joins Drew Mariani onRelevant Radio’s Drew Mariani Show to discuss the problem of Global Poverty and the seemingly counterintuitive solutions that have been lifting people out of poverty over the last few decades, as well as how more conventional “solutions” like government-to-government aid often have disastrous effects for those who are the intended recipients of the aid. You can listen to the interview via the audio player below. ...
5 Things You Should Know About Washington’s Birthday
Today in the United States is the federal holiday known as Washington’s Birthday (not “Presidents Day—see item #1). In honor of George Washington’s birthday, here are 5 things you should know about the day set aside for our America’s founding father. 1. Although some state and local governments and private businesses refer to today as President’s Day, the legal public holiday is designated as “Washington’s Birthday” in section 6103(a) of title 5 of the United States Code. The observance of...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved