The concept of “fair trade” is somewhat nebulous. Different individuals and interest groups have construed the term in very different ways. One of the most common interpretations of fair trade, however, has involved various organizations that advocate fair trade with respect to various products that are imported from emerging economies. For these groups, fair trade encompasses the equitable treatment of producers and workers in developing countries, focusing primarily on labor protection and sustainable development. For an extra cost, consumers or companies may purchase a certified product that grantees a “living wage” and better working conditions. In recent years, this movement has gained quite a significant following, expanding to cover a wide variety of products, including coffee, cocoa, bananas, and textiles.
Fair trade products have seen increasing integration into the global market. Prominent examples include Starbucks and McDonald’s decisions to purchase fair trade coffee, Nestle’s plan to fair trade certify its chocolate, and Ben & Jerry’s ambitious use of fair trade ingredients only. These products have also found their way to store shelves; in the U.S. alone, an estimated 11,000 fair trade products can be found in at least 70,000 stores. In 2010, the products constituted $1.2 billion in retail sales. The fair trade brand can also improve a product’s marketability; the Wall Street Journal reported a study in which “fair trade certified” stickers were attached to coffee products in a select number of stores. As it turns out, the stores which had the labels saw a 13% increase in sales of the product, even when the price of the product was raised by $1 a pound. Continue reading
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