Oxfam cleared of Fairtrade coffee claims

from News Com Australia

OXFAM Australia did not mislead the public by claiming Fairtrade coffee helped lift some of the world's poorest farmers out of poverty, the consumer watchdog has found.

In April, two Melbourne academics lodged formal complaints with the Australian Consumer and Competition Commission (ACCC) saying farmers were paid very little for their beans and Fairtrade coffee should not be promoted as helping improve third world conditions.

But today, the ACCC dismissed the claim.

In a letter to Oxfam, the consumer watchdog said the matter did not raise particular concerns under the Trade Practices Act so it did not need to be pursued.

Oxfam Australia executive director Andrew Hewett said he was pleased by the outcome.

"It vindicates thousands of Australian consumers and millions worldwide who choose Fairtrade products knowing they help poor farmers trade their way out of poverty,'' he said.

The term Fairtrade refers to an independent certification and labelling system that ensures coffee growers and producers are given a fair go.

Mr Hewett said that means farmers receive a fair price for their product, gain skills and knowledge to develop their businesses worldwide and receive benefits from the sale of their products.

Fairtrade also allows farmers to use improved environmental methods, to start local community development projects, have access to low-cost credit and technical assistance, he said.

"Oxfam encourages Australians everywhere to purchase Fairtrade products to help make a difference to the lives of some of the world's poorest farmers,'' Mr Hewett said.