Sales of its food have boomed on the back of promises that it delivers a fair price and decent working conditions to Third World farmers.
But Fairtrade products are failing to lift the farmers out of poverty, according to a study published today.
Less than 25 per cent of the price premium paid by shoppers for Fairtrades ethical food, such as coffee and chocolate, reaches the farmer, the controversial think-tank report suggests
The study from the Institute of Economic Affairs says the high cost of joining the scheme prevents many of the poorest farmers from becoming members.
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