Who Should Pay for Fair Trade?

In an interesting article The Observer takes a look at the benefits and drawbacks of fair trade in South Africa. On one hand it shows us how the future of some of the poorest black children can be brighter thanks to education funded in part by the additional 'wealth' ploughed into projects as a result of fair trade wines being sipped across the globe. On the other, it raises genuine concern as to whether fair trade is a sustainable model for creating a fairer trade system because the price of fair trade goods is not high enough to deliver back to the communities in need.

Sainsbury's claims that it cross-subsidises much of its fair trade produce because consumers do not understand why they should pay more for fair trade. While I believe that most enlightened consumers readily accept that they pay a slightly higher price to ensure a better wage for producers in the developing world, I don't see a problem with Sainsbury's or other retailers putting their profits where their CSR statements are.

Sainsbury's latest interim results reported that profit before tax had increased to £307m for the 6 months to 3 October 2009. Surely if some of that profit is used to subsidise a better deal for its developing world suppliers, then that is the price the corporation pays for playing its part in creating a more equal world? The burden should not be borne solely by consumers.

It should be our aim to ensure fair trade is the de facto, not a choice made by the consumer at the checkout. Awareness of the fair trade marque continues to grow apace and clearly influences many of our purchases. What if non fair trade products were labelled as such? What if an embroidered top costing a mere £10 on the high street was labelled with the details of the 12 year old Indian girl who works a 16 hour day for no more than a dollar to make this top? I think a consumer might think twice, but would the retailer? Personally I believe retailers need to take more responsibility for fairness in their supply chain rather than relying on consumers to make all the decisions.