You got it Paul, it depends of the intentions of the merchants to go "fair trade". Like with health and environment, it is most of the time a way for merchants to promote their products. In that case they "greenwash" their image focussing on marketing instead of bringing a real quality to the world.

Unfortunately, customers have no way to knowing until someone make it a scandal in the news, or worst, it is not bad enough to make it a scandal, so they can keep going hiding them behind a fake green image for a long time.

1. I was under the impression that Fair Trade meant paying the worker what the product's value was, rather than what the market price was. If the product's value is less than what is needed to feed and clothe the worker and his family, then the value is not set high enough or the product has no value.

2. Your math was off -- if you pay £1 more per jar, you are paying $2 more, not $0.50.

3. What IS the profit level in this? How much is the Fair Trade organization taking from this transaction? Are they being paid like the execs at Ben&Jerry's (used to be), or like Goldman Sachs?

Hugs,
Moss

Moss, surely the only value of a commodity is that which someone is willing to pay for it which is hence the market value.

You're right on point 2 I apoligise for my maths there.

I think you got a key question in your post. How much is the fair trade organisation taking from this transaction? The organisations that over see fair trade such as EFTA and IFAT are non profit. They are however not directly involved in the trade.

It just seems wrong that people pay well over the odds for a fair trade product and that only a small percentage of the extra that they pay finds its way to the producers.

On my Point 1 -- it isn't fair if it isn't a living. It isn't fair if it undercuts someone else making a living. If the market value does not support the product, grow something else. But if there is a demand for a product AND the market value does not support making a living, increase the price. Simple supply-and-demand. Remember, we are talking about a product that people are ALREADY paying a premium for, for the purpose of providing a living to the growers.

Re: Nonprofits, a corporation can make all kinds of money and still be a nonprofit. The largest hospital corporation in my town (Asheville NC) is a nonprofit, and raises over US$1B per year. The largest nonprofit in town specifically for taking care of the homeless is said to have 5 employees making over $80K per year, 3 of whom are rumored to make over $100K per year. I feel this is unconscionable, to say the least.

On the other hand, one of my chosen, extended families lives in Nicaragua year-round, and they sponsor various worker cooperatives (sewing, growing sesame, coffee, other crops). They don't pay salaries, and are living at only slightly above the level of the people they're helping, and serve as a focus point for other charitable agencies to get money and goods to the people.

In like manner, my nonprofit operates on the principle that nobody is paid just for being on the Board, but only for work done (the only paid person at this time is myself, and I pay myself a whopping $100 per year for work on our website).

If someone finds out what the Free Trade organization is getting, please post it here.

Hugs,
Moss