Is Fairtrade fair?

Fair trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalised by the conventional trading system, especially, producers from third world countries who have less opportunity. While out for shopping see if you can spot the Fair Trade Mark. This international label appears on Fair Trade goods. It shows that what you're buying really does help those who have produced it. It could be said that every pence that you pay more for premium price, it will delivers to producers, which help them to have sustainable livelihoods and development opportunities. With the minimum price, producers no longer worry about the loss because it is guarantee that producers would not earn less than principles. Moreover, this could help producers to learn more technologies knowledge because they have to keep developing products, otherwise they will not qualify to achieve fair-trade label.

However, there are some disadvantage of fair-trade, not every producer could achieve fair-trade’s regulation, due to, opportunities and education that they have. Another problem is oversupply; as producers could gain more from premium price, so they just aim to produce more and this could effects the balance of supply and demand. Furthermore, as they just aim to produce more products, it causes underperformance, inferiority product spread into a market. And this is not fair for those consumers who purchase it.