woensdag 17 november 2010

Disadvantages of fair trade

So far we have especially described the advantages of fair trade. In this blog I will discuss some disadvantages.

First of all we can say that the export of non-processed supplies is much cheaper than processed goods. For example: the export of coffee beans instead of roasted coffee. That’s why multinationals are not encouraged to invest in new technological facilities for Third World countries.

Second, most fair trade products are still sold in specialized shops like Oxfam-Wereldwinkel, not in mainstream distribution chains. Nowadays this trend is changing, as some traders offer the possibility of on-line shopping.

Another hindrance to become fair trade certified is the certification cost and the process of acquiring registration. Mostly the cooperatives do not have the money to pay those costs and the process can take a long time.

The last disadvantage refers to the blog of Tessa: ‘The benefits of fair trade’. On the one hand, as Tessa refers to in her blog, organic farming improves the farmers’ health and their independence. But on the other hand, this conversion from agrochemicals to organic farming asks some expensive investments from the farmers.

In spite of these disadvantages, I conclude that fair trade creates a better life for the farmers in developing countries!

Lynn Decuypere

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