Home
/
RELIGION & LIBERTY ONLINE
/
Acton University: Why Fair Trade isn’t fair
Acton University: Why Fair Trade isn’t fair
Jul 2, 2025 12:07 AM

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 birds and the bees
For some reason, I get the impression that both Russian President Vladimir Putin and the editorial board of the NYT need a lesson in the birds and the bees. The NYT criticizes Putin’s plan to address falling population levels in Russia “with a wide range of subsidies and financial incentives, along with improved health care, a crackdown on illicit alcohol, improved road safety and the like.” Thankfully for the future of humanity, the NYT has a different suggestion: “Perhaps another...
Tax those greedy Christians
Over at the Alabama Policy Institute, Gary Palmer takes on University of Alabama law professor Susan Pace Hamill and her assertion that Christians have an obligation to pay higher taxes. In “No Biblical Mandate for Higher Taxes,” Palmer examines her “theocratic tax inquisition.” In one article directed at Christians in Alabama, Professor Hamill contends that to be truly pro-life you must also support paying higher taxes to give the government more money to provide more government programs for the poor....
The Laura Ingraham Show – The Da Vinci Code
Rev. Robert Sirico joined Laura Ingraham’s radio show last week to talk about The Da Vinci Code. With the approach of the movie’s May 19 release, there’s quite a stir in munities. Many believers are trying to raise awareness that Dan Brown’s book and now the movie is a historical fiction -– not 100 percent factual history and definitely not theology. A few munities are calling for a boycott of the movie, and others are engaging in Da Vinci Code...
Scan this book! Break the law!
As a brief follow-up to my post last week about the state of scholarly publishing, I want to highlight this recent article in The New York Times, “Scan This Book!” by Kevin Kelly, who is on the staff at Wired magazine. He conjures up the same image as Janet H. Murray, of “the great library at Alexandria,” and laments that “for 2,000 years, the universal library, together with other perennial longings like invisibility cloaks, antigravity shoes and paperless offices, has...
Sportsmen think global warming is a threat?
In the in-box, this interesting survey from Nate at Field & Stream: A new survey conducted by the National Wildlife Federation (the results of which are being hosted exclusively on ) shows that: 76 percent of sportsmen believe global warming is occurring71 percent believe it’s a serious threat to fish and wildlife78 percent believe the U.S. should reduce its emissions of greenhouse gases like CO2 even though: 73 percent consider themselves conservative to moderate on political issues50 percent consider themselves...
The mandate of the state
In his fragmentary and plete Ethics, Dietrich Bonhoeffer examines the reality of the will of God, which he e to us from Scripture in the form of four mandates: work, marriage, government, and church. Here’s a great summary of Bonhoeffer’s view of the mandate of the government or state, from his essay, “Christ, Reality, and Good,” pages 72-73: The divine mandate of government already presupposes the mandates of work and marriage. In the world that it rules, government finds already...
The myth of aid
John Stossel has made an excellent and noteworthy journalistic career by going where the evidence takes him. He possesses an intellectual honesty and curiosity that is refreshing, especially pared to the banal talking head syndrome which dominates most main stream media. As co-anchor of ABC’s 20/20, Stossel has negotiated a deal which allows him to do special reports on whatever interesting and controversial topics he chooses. His latest was a special aimed at debunking popularly accepted myths, tied to the...
China-Vatican dispute
It’s been in the news for a few days already, but the charges and countercharges continue to fly. Anyone familiar with Catholicism in China knows that the Vatican and the Chinese Communist government have been more or less at loggerheads ever since Mao Zedong drove Catholicism underground. At the heart of the dispute is the Vatican’s insistence on its right to appoint bishops; the Chinese government sees this as “foreign interference” in domestic affairs. The government’s Patriotic Association (PA) is...
Geldof trades up
The May 16 Independent is guest-edited by the ubiquitous Bono and sports the RED brand–another Bono project where a share of the profits from the mag will be donated to fighting AIDS and poverty in Africa. panies with RED brands include Converse, American Express, Armani, and GAP.) See the issue for yourself (where you will find a critique of subsidies, as well as Nelson Mandela giving props to RED as well as an interview edian Eddie Izzard–two men who much...
The shifting paradigm of scholarly publishing
My presentation a few weeks ago at the Drexel University Libraries Scholarly Communications Symposium went extremely well, all things considered. My talk was titled, “The Digital Ad Fontes!: Scholarly Research Trends in the Humanities,” and I was representing the liberal arts, particularly history and theology. Dr. Blaise Cronin, who was going to give the first lecture, took ill and was unable to attend. The attendees were quite interested in my presentation, and questions had to be cut off to maintain...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved