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Bized In The News - Biz/ed In The News - 27 February 2008 - Fairtrade | Текст песни

This week sees the start of Fairtrade Fortnight. The aim is to raise awareness and promote the expansion of Fairtrade. In 2007, the sale of Fairtrade products rose by 81%. Total sales of Fairtrade products reached £493 million according to data from the Fairtrade Foundation with bananas accounting for £150 million of the total figure.
One of the main messages from the Fairtrade Foundation is the need to build on the momentum that Fairtrade can develop - getting more high profile names on board to help spread the message is critical to expanding the movement and helping farmers in developing countries to get a fair price for their products and improving investment in production. The Foundation says it has been trying to break into the mainstream consciousness for some time now and when key organisations get involved it helps to spread the message wider and gives far greater credibility to the movement.
The news that sugar producer Tate & Lyle has applied for accreditation to the Fairtrade movement is one such example. Tate & Lyle's granulated sugar will be the first in a line of its products that will be able to display the Fairtrade label. Sugar produced in the Central American country of Belize will be the first to come under the Fairtrade mark. £60 million worth of value will be added to Fairtrade sugar in the first year according to the company.
The decision by Tate & Lyle will mean that sugar producers in Belize will get a minimum price for their product that will ensure sustainable
production. In addition, there will be sums of money that can be used to invest in education, health and other community projects. The announcement covers Tate & Lyle's retail sugar production. The company plans to include all of its retail range by the end of 2009. However, supplies of cane sugar to manufacturers who produce other products that include sugar are not included in the plans. The business says that it hopes to include these eventually but that such a move will depend on other factors that have to be negotiated.
The Fairtrade Foundation has expressed its delight with Tate & Lyle's decision. However, not everyone is as pleased with the decision. The Adam Smith Institute, a think tank associated with a belief in free trade, has published a report that casts doubt about how fair Fairtrade is.
The central argument they follow is that farmers who qualify for Fairtrade payments may well see some benefit. However, many other farmers who do not qualify and the fact that the price mechanism is distorted by Fairtrade may well hurt these farmers. The Institute argues that only 10% of the premium that consumers pay for Fairtrade products gets to the farmer - the rest goes to other people in the supply chain. Farmers might also gain some element of protection from the premium, they argue, and there will not be the same incentive to diversify, invest and look to improve efficiency. If this is the case then future generations will be affected.
The Fairtrade Foundation does not agree with the assessment by the Adam Smith Institute and reject the suggestion by the Institute that it is, primarily, a very good marketing vehicle. The Institute argue that Fairtrade may not be the best or only way to help poor farmers.


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