willoway I recently I bought two bags of Cafe Direct coffee beans at a drastically reduced price in a bargain shop. This is a shop that buys in ultra-bulk, but also stuff that is nearing its sell-by date. How is the Fairtrade status affected by buying your products in shops like these? Is the price passed on to the grower even when the product is picked up in less formal arrangements like bargain shops?
lamtheurbanspaceman@willowway - yes - the fairtrade status is not affected by the shop or the price you pay at a retail outlet because it is all already sorted out further back down the supply chain.
ovethewallWillowway
Reading it back - my previous posting may have been a bit harsh on Fairtrade, but this stems from frustration of what was once a development/ campaigning label into an apparent marketing opportunity for bandwaggoners.
One of the many benefits of Ft is that the same Ft price and Ft premiums get to the farmers regardless of retail price. So you can grab Ft bargains at discounters that will deliver the same Ft benefits but again you can also pay significantly over the odds as some supermarkets (Tesco - obviously - and surprisingly Sainsbury the worst as far as I have seen) who inflate prices and profiteer with farmers geting none of the additional money you are investing (into the PLC quaffers)
Play safe and stick to pioneer brands - either at local shops or at the co-op who do a pretty fine job on Ft with own brands too ( and are a mutual not shareholder owned)
CafedirectGreat question and answers! As discussed, the fairtrade price (including the social premium) will always reach the farmers because any buyer is required to pay this price.
The complicated part is that the final retail price depends on the outlet that sells the product, as that store, be it an Oxfam shop or Sainsburys, will set the selling price (and thus the margin they make on selling the product). Choosing what to buy is one decision, and choosing where you go to buy it can be another.
If you buy our products through Traidcraft and Equal Exchange, the profits made on those products will go to the work of those organizations vs. to the shareholders of a company. Yet the retail price is often higher (less economies of scale than a supermarket) or it could be more inconvenient than heading to your local Tesco. Always tradeoffs!
However, to add another perspective, supermarkets do make our products available to a mainstream audience and we really want to encourage more distribution, not less! Through supermarkets, Cafédirect products can reach many more consumers, meaning we can purchase more from growers and have a much bigger impact as a result. Yet we have no control over the prices they set. Slashing prices of a fairly traded product (particularly own brand) can send a confusing message to consumers about fair prices. Conversely, higher prices also dont guarantee any more profit back to farmers.
Companies join up to Fairtrade for different reasons and choose to certify anywhere from 1 product in their range to 100% of their products, etc. A company who has a sells a Fairtrade product can simply buy certified coffee anonymously and then market themselves as committed to trading fairly.
Ultimately, we couldnt agree more with Iamtheurbanspacemans comments on pioneer brands!
In the case of Cafédirect, having 100% of or products Fairtrade certified is just the start. We have direct, long term relationships with smallholder growers, there are 2 growers on the Board of Directors, cooperatives own shares in the company and we are constantly working to push value up the supply chain and back to origin. Fairtrade is where weve started, but were continuing to pioneer. While we welcome how Fairtrade products have become more and more mainstream, hopefully our comments here explain some of the difference between all those ‘Fairtrade products on the shelf!
Cafédirect answers questions from the public on the Guardian's
Ethical living blog.
Of their range, I can wholeheartedly recommend
this.