Fair trade and coffee... does fair mean free?

So I've got a lot of friends who are somehow involved in coffee culture.
I don't really like bursting their altruistic bubble, but I have my reservations about the long-term viability of fair trade.
I also don't really want to get into economic debates around this with them, because I'm not an economist and it's a passionate topic.

I've read two sources on the matter which were interesting, one being Tim Harford's undercover economist (which I loved).
And this article (excuse the dodgy source):

The problem with fair trade is the problem with just about every so-called progressive economic policy: it ignores the laws of supply and demand.

Say you live in Colombia. You know demand for Colombian coffee is high. Should you become a coffee farmer? You might, if other coffee farmers were making a profit. If they weren't, you'd conclude there are too many farmers already and pursue a more promising line of work.

That's one critical function of prices and profits: They steer all of us – from the poorest farmer to the richest CEO – to pursue the most productive use of our energy. And that's what makes fair-trade coffee so misguided.

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http://www.csmonitor.com/Commentary/Opinion/2008/0808/p09s02-coop.html

It would be interesting to hear some thoughts on the topic from guys here (wildcat and hard rain, I'm looking at you).
Is there a sound economic argument for fair trade?
Is fair trade not an appropriate response in certain political structures, where the market is not free?

You should watch this:
http://blackgoldmovie.com/
http://en.wikipedia.org/wiki/Black_Gold_(2006_film)

There's nothing wrong with consumers voluntarily opting for a more expensive good under the auspices of egalitarianism, but what should be understood is that the vastly higher mark-ups on these "fair trade" products are unlikely to actually trickle back to producers. As far as I can tell it's simply a brand only paying lip-service to the "cause" it claims to represent.

If the folks supporting these initiatives really cared about enriching others through trade they'd be in favour of totally free trade, which means one piece of paper saying: "we will trade with you across our borders without limitation or interference and expect the same in kind"; not ten thousand pages of "free trade" legislation...

Hard Rain said:

If the folks supporting these initiatives really cared about enriching others through trade they'd be in favour of totally free trade, which means one piece of paper saying: "we will trade with you across our borders without limitation or interference and expect the same in kind"; not ten thousand pages of "free trade" legislation...

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+1 No such thing as free trade.

Fair trade works because people understand why its necessary.

Its a fancy word for something we have understood for a long time, even in hard times... you need to support the producer because they are the source. Also you need to support a producer that is making their goods in a sustainable and efficient way (not wanting to use the term carbon neutral)

Fair trade actually benefits us all in the long term... so its not as altruistic as you think.

With the world economy the way it is right now this is just a pipe dream. How many people can afford to consider things like freedom over price?

Seems like another one of those impractical, yuppy type things that people get involved with to make themselves feel superior while ignoring the fact that most people just want to be able to feed their families at the end of the day.

Nick333 said:

With the world economy the way it is right now this is just a pipe dream. How many people can afford to consider things like freedom over price?

Seems like another one of those impractical, yuppy type things that people get involved with to make themselves feel superior while ignoring the fact that most people just want to be able to feed their families at the end of the day.

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yeah, i'd agree with this and what hard rain has to say.
i also don't have a problem with people paying inflated prices for goods if they want to.
i know of a company where the owner does in fact go, meet the farmers and pay them directly iirc, so the intent behind fair trade and its outcomes int the short term aren't necessarily bad.
he also gets involved in community initiatives with these people etc.

i guess my question then goes like this: when is a market behaviour, which is inefficient and therefore unsustainable in the long term, more beneficial to both parties than one which is efficient in the long term?