The Challenges of Marketing Fair Trade - Wynne, Sandy

companies like Divine Chocolate and Equal Exchange have demonstrated that Fair Trade
and quality are a winning combination. Some activists fear that MNCs may want only
enough involvement to control the Fair Trade market, with small farmers dependent on
one contract with a MNC, to keep Fair Trade as a niche market so that the MNCs can
continue business as usual. Another reason for limited involvement may be to simply
satisfy shareholders’ concern for meeting corporate social responsibilities. When
companies like Starbucks sign contracts for Fair Trade Certified coffee, that purchase
represents a small portion of their total purchases, yet for local farmers the sales are huge.
The fear is that over time a few MNCs could dominate the Fair Trade market and put the
small scale farmers at the mercy of the MNCs as smaller importers get pushed aside.
To address the concerns of mainstreaming, TFUSA and other NIs need to
coordinate basic standards and requirements that apply to all MNCs. Rather than
lowering the bar, raise the bar. Small companies that are 100% FTC should be recognized
and rewarded by reducing their required fees, perhaps on a sliding scale dependent on a
percentage of Fair Trade to overall company sales. This in turn might motivate MNCs to
become more committed. TFUSA must work with retailers and consumers to demonstrate
that MNCs cannot gain control Fair Trade.
2) Selling out
In conjunction with mainstreaming concerns, selling out has been a criticism of
TransFair and FLO for their focus on MNCs involvement without pressuring those
corporations to improve their behavior. TFUSA walks a fine line with this move toward
licensing MNCs. On the one hand, TFUSA wants to encourage them to participate in Fair
Trade, and, on the other hand, NGOs in the Fair Trade movement would like those MNCs
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