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Traidcraft to go into liquidation

(22 Posts)
Nonnie Wed 03-Oct-18 12:43:57

Just heard this on the radio. Looks like they can't sustain their model because they have been hit so hard by the Brexit caused drop in the pound.

Fennel Wed 03-Oct-18 12:47:21

That's a shame - I used to buy their coffee.

Baggs Wed 03-Oct-18 12:49:28

Or, to put it another way, not competitive enough without being propped up by a falsely high pound sterling.

Before anyone jumps on me for being cynical, I supported Traidcraft from its inception until relatively recently. I began to find that their products simply weren't as good (by my standards) as equivalent ones that were non-Traidcraft.

They had a worthy aim.

grannyqueenie Wed 03-Oct-18 12:49:44

That’s a real shame, they were one of the front runners in raising the profile of fair trade goods way before they were available in mainstream shops.

Nonnie Wed 03-Oct-18 13:07:29

I didn't know before listening to this that they used environmentally packaging as well. One example is not using foil wrapping on their chocolate, using biodegradable products instead.

Nonnie Wed 03-Oct-18 13:08:45

Baggs I would be interested to know why you think the pound was 'falsely high', I haven't heard that said before.

Day6 Wed 03-Oct-18 13:13:34

Like Baggs I actively supported Traidcraft thinking ethically aware companies should be encouraged. I stopped a while ago when I felt I wasn't getting value for money. I don't mind paying a bit more on principle but the quality and quantity was lacking.

Baggs Wed 03-Oct-18 13:17:14

Heard in general conversation, nonnie, by economists who said that being in the EU bloc kept the value of the pound up and that the drop in its value since the Brexit vote has had the direct result of increased exports.

I am not an economist so I don't know why being in the blos kept the value 'unnaturally' high. UK exports have risen since the fall in the pound though.

Baggs Wed 03-Oct-18 13:19:23

Apparently imports should have benefited too but tariffs have prevented that. Perhaps that's what has negatively affected Traidcraft (as well as dissatisfaction with their goods; see my first comment and day6’s).

Nonnie Wed 03-Oct-18 13:21:17

Thanks Baggs I thought it was going to be one of those organisations whose job it is to know such things.

Increased exports definitely but much more expensive imports so not good news. I have benefited from this as we have American shares but it bothers me that it makes so many things we buy more expensive for everyone.

MaizieD Wed 03-Oct-18 16:15:52

Apparently imports should have benefited too but tariffs have prevented that

That very much depends on the source of the Traidcraft goods. Most African countries are on EBA (everything thing but arms) which means all their exports to EU States are tariff free (except arms). The EU usually has a low, or no, tariff relationship with poor/developing nations. So I'm not sure that tariffs are to blame.

MaizieD Wed 03-Oct-18 16:19:11

No, I'm getting mixed up. We pay more for imports when the £ is low. (But the tariff point is still valid)

Grannyknot Wed 03-Oct-18 16:20:53

Er, there's currently a Traidcraft competition on Gransnet!

jura2 Wed 03-Oct-18 16:33:29

It is unbelievable how the uncertainty is hitting all businesses, small, middle or large.
A British friend here in Switzerland exports the best of British Cheeses to Zurich (yes, a bit like coals to Newcastle) - and he has no idea, not whatsoever, what will happen, and if he will be able to keep in business - despite it being so so succesful.

Chewbacca Wed 03-Oct-18 17:23:12

Only tried Traidcraft coffee once and really didn't think it was worth the extra money. The higher price was certainly not indicative of the quality.

jura2 Wed 03-Oct-18 17:33:58

but that was just not the point Chewbacca !?!

Chewbacca Wed 03-Oct-18 17:58:14

So jura? I believe that this is an open forum, is it not? And did you deign to pull Baggs & Day6 up on their posts when they made the same observations? No? Thought not.

Nannarose Wed 03-Oct-18 18:05:42

In some ways, their work is done. I became a rep in 1982 when there was little choice in ethical trading.
Now I have a great choice, both in local shops and on-line.
I thank all of those who had the vision to set this up, and hope that those who have lost their jobs will find other work to do.

jura2 Thu 04-Oct-18 10:08:58

Chewbacca, nothing personal about my remark- you just happened to be the last poster to say it.

Traidcraft was about fair trade - not about value for money- impossible to seel cheap if you pay producers a FAIR wage. But yes, if the quality was not there - I get it.

BBbevan Thu 04-Oct-18 19:24:15

Why is there a competition to win £100 Traidcraft products ?

NatashaGransnet (GNHQ) Thu 04-Oct-18 22:21:18

Hi all,

We will look into this first thing tomorrow morning.

BBbevan Sun 07-Oct-18 21:12:56

Has this been resolved yet?