How fair trade is 'FairTrade'?

February 14, 2015

 

Fairtrade reduced the incentive to diversify crop productio  and encourages the utilsation of resources on mariginal land that could be better employed for other produce. Modern farming techniques (mechanisation, econonies of scale, pesticides, genetic modification  etc) are sidelined or even activity discouraged.

 

By guaranteeing a minimum price, Fairtrade also encourages market oversupply, which depresses global commodity prices. This locks Fairtrade farmers into greater Fairtrade dependency and further impoverishes farmers outside the Fairtrade umbrella.

 

Read more about this here:

 

http://equalexchange.coop/sites/default/files/HistoryofFairTrade.pdf

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