Fairtrade Organization Rebuts Critical Report From IEA

The Fairtrade Labeling Organizations International has issued a rebuttal to a report by the Institute of Economic Affairs that FLO feels was incorrect on several points. The IEA, for example, was wrong to imply that Fairtrade offers no long-term strategy for development. Certified organic cotton farmers in Mali earn 50 percent more than conventional farmers, allowing almost all (95 percent) of their children to attend school, which contributes to long-term growth. Fairtrade does focus on the poorest countries: forty-seven percent of the 870,000 small scale farmers in the system are in East Africa. FLO acknowledged that certification costs money – about $1,570 for 50 farmers – but cost is not a barrier to certification. The Producer Certification Fund covers up to 75 percent of the fee for eligible organizations.