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Organic revisited

How can we credibly assert to be encouraging free trade when the Fairtrade system – by paying producers more money than their products worth – is a subsidy in disguise? Paying a premium for Fairtrade products discourages producers to explore alternative crops, keeping them in the poverty trap. Worse, it encourages new producers to enter the market, resulting in a further fall of prices. Non-Fairtrade producers will be hit hardest because they then only receive the (even lower) market price. Having sacrificed life and limb in a Fairtrade coffee tasting, one can see the practical consequences: the artificial subsidies provide no incentive to improve quality, much to the palate’s regret.

Presumably, the fact that the “buy local” lobby’s aims conflict with those of the Fairtrade bunch by discouraging first-world consumers from buying third-world products matters little to them. After all, the new local food movement has really just put the brown paper bag over the old protectionist Gollum. Helping poor-country producers through Fairtrade initiatives and simultaneously

discouraging buying distant produce is simply not possible. But, maybe it just depends on perspective and Britain really is a developing country worthy of Fairtrade subsidies.

There is no doubt that the intentions of the ethical food movement – protecting the environment, shifting the economic balance in favour of poor producers and helping development – are incredibly laudable. What’s problematic is the means by which they are pursued. So what can we do? Concentrating on things that are less fun than shopping but more effective would be a good start: reinvigorating world trade negotiations, introducing a carbon tax and abolishing the EU common agricultural policy should be the most important issues for governments to tackle. A carbon tax will add the cost of carbon emissions to prices and provide the best indicator whether it is better for the environment (rather than farmer’s pockets) to buy local produce or Valentine’s roses from Kenya.

The popularity of the ethical food movement

is evidence of a desire for change, and it is only so long that politicians can resist before hijacking a popular idea. At the end of the day, what will Tony, Dave and Gordon care more about: what you eat or for whom you vote?

Alex Graetsch


Posted on Sunday 4 March 2007