Ethical Trade: Are You Doing Your Bit?
by Cheryl L Jenkins PhD
Tomorrow morning when you pour some ice-cold milk over your favourite breakfast cereal spare a thought for dairy farmers in the developing world. European exports of surplus milk and milk products are crippling dairy farmers and locking them in poverty.
A report by farmingsubsidy.org revealed that the EU spends between ˆ1.2 and ˆ1.4 billion a year subsidising exports of surplus milk and milk products to numerous countries in the developing world. These subsidised imports flood the market and keep the cost of these products so low that local dairy farmers simply cannot compete. For poor people the purchase of dairy cows is the first critical step on the ladder out of extreme poverty but they can no longer make a profit selling milk. What’s more this ‘dumping’ of surplus milk makes it harder for developing countries to establish sustainable trade with neighbouring countries.
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Of all the high street supermarkets the Co-op and
Waitrose are generally reported to be the most ethical |
Sadly, this is not an isolated example, producers in the developing world are frequently undercut but buying Fairtrade is one way of changing this situation. Buying Fairtrade ensures that the producers are receiving a fair price that covers the cost of sustainable production and living – helping them to help themselves. The Fairtrade label signifies that a product has met internationally recognised standards of fair trade.
Where to Spend your Money Ethically
The New Consumer recently reported that “one in every three Fairtrade products is purchased at Tesco’s”. Unfortunately, this is not the result of an ethical policy but more to do with the fact that ?1 in every ?8 is spent on groceries at Tesco’s. In reality Tesco’s policy is to continually drive down prices meaning that many food producers and farmers do not receive a fair price for their crop.
Of all the high street supermarkets the Co-op and Waitrose are generally reported to be the most ethical. Local shops, the British Association of Fair Trade shops and local Fairtrade and organic food co-operatives all provide a better way to buy. Not only do many of them have an ethical policy but a portion of the profits are reinvested to support Fairtrade as opposed to filling the pockets of the shareholders.
Ethical Brands: Cashing In or Selling Out?
A recent trend of takeovers means that behind many of our ethical brands is a growing range of multinational companies with a less than flawless track record. In case you didn’t know, brands such as The Body Shop, Green and Black’s, Aveda, Ben & Jerry’s and Converse have been taken over by the likes of L’Oreal, Cadbury, Estee Lauder, Unilever and Nike.
''Decisions about
how we trade
or buy are not
only decisions about
how we want to live
but they influence
how other people
can live their
lives too''
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Sadly these takeovers threaten the one thing that made these brands special – the consumers believed in their values. Many of the names behind these ethical brands would have us believe that it isn’t about selling out but about cashing in - reaching the masses through the exclusive retail channels that only a multinational corporation can access.
It will be interesting to see how consumers respond. The optimist in me hopes that astute consumers will keep pressure on these multinationals to ensure that they maintain the ethical principles that we associate with these brands.
The multinational parent companies may feel the impact, which is great but there is also a danger that these ethical brands will loose value in the process. The challenge they face is to prove that they are not just selling out but that they are able to improve the parent company rather than being abused by them.
Your Choices Count
Decisions about how we trade or buy are not only decisions about how we want to live but they influence how other people can live their lives too.
Governments can, and do, change the rules that define the global trading system – no matter how slow the process – if they believe it is what the voters want. You can put pressure on politicians for international change by writing letters and lobbying the government. International trade is a powerful means of lifting people in poorer countries out of poverty but this can only happen if the trading relationship respects everyone in the supply chain.
You also have power as someone who makes purchasing decisions on a daily basis – never underestimate the power of the consumer! Consider how much your yearly food bill totals. By choosing to spend even a fraction of this money on Fairtrade products you can be sure that your money is helping farmers earn a decent wage, keeping families together and sustaining communities. If the developing world received a one per cent increase in share of world trade, 128 million people would be lifted out of poverty. So what are you waiting for – buy Fairtrade!
Additional Resources:
The Fairtrade Foundation
www.fairtrade.org.uk
Make Poverty History Campaign
www.makepovertyhistory.org
Source: http://www.farmsubsidy.org/?q=node/61
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