Fairtrade Foundation response to article posted on Guido Fawkes blog

Response to the allegation that Fairtrade only spends 23% of income on farmers.

This article only looks at a small fraction of the financial benefit to producers that comes from Fairtrade sales, ignoring the financial premium amount that farmers receive that frees them to spend money on ways to directly improve their livelihoods and communities.  In 2016 alone the premium that went to farmers and producers was £32.3m.

Licence fee represents on average 0.6% of the retail price and Fairtrade delivers high levels of producer support alongside the independent auditing and evaluation and the standards for which Fairtrade is known.

Notes to editors

With £1.6bn of Fairtrade goods sold annually, license fee income represents on average 0.6% of the retail price, providing a high level of producer support alongside auditing and evaluation services. These services ensure that compliance against commitments to human rights and fair trading is being met in practice, and to ensure proper oversight and governance of the system.

The Fairtrade Foundation is a registered charity that does not make a profit.

Public awareness and campaigning in support of Fair Trade rules and commitments is also supported by the Fairtrade Foundation. This is money well-spent: by encouraging companies and governments to trade in a fairer way, we are helping create the conditions for farmers to trade their way out of poverty for good. The recent announcement by the Department for Trade confirming duty free access to the UK for the world’s poorest countries is just one example of an issue on which Fairtrade campaigners have worked.