What is Fair Trade missing/getting wrong?
Fashion victim: the impact of fair trade concerns on clothing choice
Shaw, D. et al. (2007) Fashion victim: the impact of fair trade concerns on clothing choice. Journal of Strategic Marketing, 14, 427–440. DOI: https://doi.org/10.1080/09652540600956426
Abstract: Fair trade is concerned with ensuring a fair price and fair working conditions for producers and suppliers, promoting equitable trading agreements. Throughout recent years fair trade has experienced considerable growth in the food sector. This growth has been significantly aided by labelling certification through the Fairtrade Foundation mark and availability in the mainstream. Consumer concern in other product sectors, notably fashion and clothing where child labour and worker's rights are pertinent issues, is exerting pressure for similar action.
Fairtrade and Market Failures in Agricultural Commodity Markets
Ronchi, L. (2006, September 1) Fairtrade and Market Failures in Agricultural Commodity Markets. World Bank Policy Research Working Paper No. 4011. Retrieved from: http://documents.worldbank.org/curated/en/832461468137098938/Fairtrade-and-market-failures-in-agricultural-commodity-markets
Abstract: This paper concerns an NGO intervention in agricultural commodity markets known as Fairtrade. Fairtrade pays producers a minimum unit price and provides capacity building support to member cooperative organizations. Fairtrade's organizational capacity support targets those factors believed to reduce the commodity producer's share of returns. Specifically, Fairtrade justifies its intervention in markets like coffee by claiming that market power and a lack of capacity in producer organizations 'marks down' the prices producers receive. As the market share of Fairtrade coffee grows in importance, its intervention in commodity markets is of increasing interest.