By Smitha Peter and Aine Gormley
According to the Fairtrade Foundation, one third of Fairtrade products are also organic. These organic Fairtrade products are often more expensive than non-organic Fairtrade products. Research has shown the organic Fairtrade label to positively impact the perceived quality of the products.
Does the fact that price premiums are given to Fairtrade farmers for organic production (because of the environmental benefits) justify the Fairtrade Foundation to stamp the double label and bump up the price?
“Fairtrade is about fairer terms of trade for producers to affluent markets – it is not about environmental standards per se,” according to Dr David Barling, Reader in Food Policy at City University London.
“Agri-chemicals are part of conventional agricultural production systems – as long as the chemicals are not banned in the importing countries,” Dr Barling added.
The research conducted by Dr Didier Tagbata at University of Valencia suggested that although the double label enhanced perception of the product, people are not ready to pay more for organic and fair trade products. Dr Tagbata warned that markets for these two products must not be overestimated.
Martin Caraher, a Professor in Food and Health Policy at City University London, agrees that most people will only buy the double-labelled product if the price is no higher than the non-organic Fairtrade product.
“If you’ve got a Fairtrade product, and another one that is Fairtrade and organic, which is more expensive, in nine cases out of ten fairtrade only product will win out.” Prof Caraher said.
He added that, “People tend to trade off psychologically about Fairtrade. It makes them feel better by paying a couple of pence for the Fairtrade product. It is an interesting link. Consumers are consuming Fairtrade rather than Fairtrade being a part of each and every product.”
But Dr Tagbata claims that generalisations cannot be made as only 50 per cent of the customers studied linked Fairtrade and organic products to social and environmental concerns.
“The results should be checked on representatives in several countries,” Dr Tagbata said.
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