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Article

21 Jul 2006

Author:
Alan Beattie, Financial Times

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...Fairtrade aspires to be more than charity. It wants to help the world’s poor not through aid but by changing their relationship with the market to which they sell... As Fairtrade expands beyond its niche it attracts scrutiny and suspicion. The economist’s automatic critique is that paying above the market price encourages farmers to stay in unprofitable sectors, inducing oversupply and pushing down prices for everyone else. Others think it well intentioned in theory but corrupt in practice, with European supermarket chains and international commodity brokers reaping more benefit than Guatemalan farmers...[but] Some of the traditional fears about Fairtrade appear unfounded. A big oversupply problem seems unlikely. Fairtrade works mainly with small co-operatives who restrict their supply year by year to meet demand. The higher income can also help farmers increase quality or diversify...[refers to initiatives by or involving: American Express, Giorgio Armani, Gap, Motorola, Cadbury Schweppes, Phat Farm, Edun, Nestlé, Kraft Foods (part of Altria), Marks & Spencer, Green & Black’s (part of Cadbury Schweppes, Starbucks, Waitrose (part of John Lewis Partnership)]