Fair wind for Fairtrade

In an earlier news item we saw that the global recession has hit the demand for organic produce. The same is not true for Fairtrade products as a global survey published on 17/4/09 shows (see). Awareness of Fairtrade products continues to grow as do sales. The articles below look at the findings of this survey and at the explanations behind it.

UK: Fairtrade Flows Against Economic Tide Namnews (20/4/09)
The government must act on fair trade now Public Service Review: International Development Issue 13 (20/4/09)
Fairtrade a hit with shoppers as demand rises despite credit crunch Glasgow Daily Record (17/4/09)
Link to short videos from the Fairtrade Foundation; Link to facts and figures on Fairtrade Fairtrade Foundation

Questions

  1. Consider the reasons why Fairtrade sales have increased while sales of organic produce have declined.
  2. Does purchasing Fairtrade products mean that consumers are not seeking to maximise their consumer surplus?
  3. What economic challenges face Fairtrade producers? How should governments help the Fairtrade movement?
  4. Is the liberalisation of trade in the interests of Fairtrade producers?