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A low price is not a fair price.

Sir, Ongoing price wars by the major retailers in the conventional banana sector are preventing any further growth in the Fairtrade market. There is no doubt that conventional suppliers have had to keep their prices down in each new price negotiation with retailers, leaving no room for improvements in wages or working conditions. Some retailers would have made the conversion to 100% Fairtrade bananas if the subsequent price differentials between conventional and Fairtrade weren't so great.

Banana Link does not believe retailers already 100% committed to Fairtrade bananas should be participating in the banana price wars. These retailers should reinforce their commitment to Fairtrade by abandoning the price wars and instead giving a signal to consumers that a low price is not a fair price.

Alistair Smith, international coordinator, Banana Link
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Title Annotation:letters
Author:Smith, Alistair
Date:Aug 28, 2010
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