people are living in extreme poverty worldwide, 1101 Vermont Ave NW, Suite 350, Washington, DC 20005. Copyright 2023 Fair Trade Federation. Its success depends on independent, successfully-run organizations and businessesnot on handouts. After studying this chapter, are you more likely or less likely to buy fair trade coffee? The Theory of Change takes into account more than farmers or fishers. China, which could soon surpass the United States as the biggest source of greenhouse gases, is concentrating its climate changing efforts on emissions intensity and is launching programs to encourage efficiency gains. If the coffee shop does a good job of promoting why their prices have increased and gives consumers a reason to pay more, they will. You might be buying Fairtrade certified products without even realizing it! This price guarantee is intended to augment and stabilize the revenues of producers in developing countries, so that they can invest in social welfare infrastructure and environmentally friendly farming methods. The WFTO serves as a global network and clearinghouse, serving the interests of over 370 independent organizations in more than 70 countries.5Fairtrade International (FLO) is an international organization, based in Bonn, Germany, that promotes the most widely used certification system for products designated as fair trade or Fairtrade. Note that FLO deliberately distinguishes itself by using a special way of spelling the term with no space between the words. The payment for their time is paid shortly after items are delivered to Global Mamas, meaning that the women do not have to wait until their products are sold to be paid. It also found that workers on fair trade farms were often paid beneath the minimum wage, in violation of fair trade standards. As a leader in the global movement to make trade fair, Fairtrade supports and challenges businesses and governments and connects farmers and workers with the people who buy their products. The streamlined process was intended to eliminate fifteen to thirty percent of the cost of auditing expenses for coffee farmers in the developing world. Work out and monitor what affect their activities are having on the environment. Good for business. First of all, fair trade is a reaction to what is referred to as the discourse on free trade or "correction" of the principle of free trade. Opponents, such as staunch environmentalists, contend the targets are much too low and the end results not significant enough. This is markedly different from the Kyoto Protocol, which mandates cuts in the total produced. Starbucks and FLO-CERT developed a single-audit system so that farmers applying for Fairtrade certification and Farmer Equity Practices verification could become Starbucks vendors in one step. 16. Recognizing that producers may not have access to the materials and capital they require to work, Global Mamas producers are provided with the raw materials needed for production in advance, so they dont have to invest their own capital. With Sitka Salmon Shares, this approach helped us scale our market 1000% in 4 years while advancing our triple-bottom-line. The cooperative has the responsibility of visiting the individual farms to make sure that they are complying with standards. But for the average shopper, the labels can get confusing pretty fast. Global Mamas implemented an internal fair trade evaluation program for our producers, which includes interviews, site visits, and educational sessions to ensure producers understand and embrace all aspects of fair trade within their own enterprises. What is Fair Trade? Most fair trade craft products stem from cultures and traditions which are not represented in North American production. What is Fairtrade? In Europe, this process is much further advanced, with hundreds of towns and municipalities having received certification. Theres a lot of machismo in our society. Fair-trade advocates argue that the eco-benefits extend beyond these simple rules. Fair Trade International and Fair Trade USA organizations created what we know as Certified Fair Trade. 53129 Bonn Germany, Tel: +49 228 949230 Email us, Assuring integrity in checking compliance, Producer networks and producer organizations, Fairtrade International Constitution / Satzung des Vereins, Student Assistant Standards & Pricing Unit, Technical Assistant Global Products, Programs & Policy, A Fair Price for Human Rights Due Diligence, Fairtrade certification and producer resilience in times of crises, Guidebook: Implementing Human Rights and Environmental Due Diligence, Assessing the Impact of Fairtrade on Poverty Reduction and Economic Resilience through Rural Development, Evaluation and baseline research with small producer organizations producing Fairtrade sugar: Belize, Exploring Fairtrade's Impact: A review of research on Fairtrade from 2015-2020, Monitoring the scope and benefits of Fairtrade: Latin America and the Caribbean region, 13th Edition, Monitoring the scope and benefits of Fairtrade: Asia Pacific region, 13th Edition, Definition and Scope of Significant Number of Workers, Price Study - Coconut for Processing in Ivory Coast 2022, Calculating floor wages for Flowers and Plants, Fairtrade Premium for Young Plant Material, Cocoa Fairtrade Minimum Price Differential announcement, Trader Standard Review - First Consultation, Postponement of the implementation date of the requirement 3.1.1 and 3.2.1 of the Fairtrade Coffee Standard, Closure of Fairtrade pilot certification in conflict-affected regions, Prepared and preserved fruit and vegetables, Fairtrade announces Cocoa Standard update expanding requirements on human rights and deforestation, Fairtrade a valuable "piece" contributing to corporate human rights work, Partnering for meaningful human rights due diligence: A Q&A with researchers, The Councils vision of the EU due diligence directive weakens the position of smallholder farmers and workers, Farmers hold the key to the climate crisis if only world leaders at COP27 would listen, At COP27, I am raising my voice for climate justice A climate conversation with Fairtrade Producer Ines Zairi, Climate justice means using the lens of equity A climate conversation with Fairtrade partner Ben & Jerrys, Sankofa: Improving incomes and building climate resilience through dynamic agroforestry, Koperasi Baitul Qiradh Baburrayyan (Indonesia), Oromia Coffee Farmers Cooperative Union (Ethiopia), Cooperativa de Caficultores de Antioquia (Colombia). Nobody wants to buy something that was made by exploiting somebody else. Fairtrade changes the way trade works through better prices, decent working conditions and a fairer deal for farmers and workers in developing countries. One of these was the Network of European World Shops (NEWS! Read on to learn more and join us in recognizing the value women bring to supply chains, workplaces, and communities. Explore the different parts of our global system. Cooperatives and producer associations provide a healthy alternative to large-scale manufacturing and sweatshop conditions, where unprotected workers earn below minimum wage and most of the profits flow to foreign investors and local elites who have little interest in ensuring the long term health of the communities in which they work. In an attempt to make sense of all the various labels and claims, let's focus on items that are officially "fair-trade certified." Traditionally, the fair-trade designation has been associated more closely with labor standards than environmental standards, suggesting that workers in far-off places are enjoying better wages and conditions than they would for producing products under conventional labels. The fair trade approach supports a variety of social business practices that advocate for higher standards in regards to producers pay, work atmosphere and environmental protection, among others. The trouble is, according to some farmers, that cooperatives do not always enforce international fair trade standards. By 2002, however, the Wall Street Journal reported that an oversupply of coffee beans had once again driven coffee prices to an all-time low, pushing many farmers out of business.10 This second collapse of world coffee prices was estimated to affect 125 million people internationally, and most farmers were again at the mercy of a volatile market, without recourse. Fair Trade USA requires that all its farmers have access to doctors and affordable medical treatment in case of illness or injury. By 2009, fair trade coffee had become a $1.8 billion market.12. accessed October 6, 2013, http://www.fairtraderesource.org/uploads/2007/09/What-is-Fair-Trade.pdf, 2. Proponents argue that a program with support from its participants has a stronger chance of achieving real change. Why do consumers buy Fair Trade products? Essentially, this means they must buy their product from a certified importer or directly from one of the certified exporting cooperatives. We are working to change this injustice through our simple yet powerful approachmaking trade fairer for the people who grow our food. Fair Trade coffees are also produced through environmentally friendly and sustainable farming practices free from child labor. It's all about making trade fair. Wendy is concerned because she is aware that there has been a lot of criticism of fair trade as a system that promises more than it delivers. Want to create or adapt books like this? Youll be hearing from us soon! There is much support from the country's booming oil industry in the West. This acts as a 50%+ advance payment. International Womens Day is a global celebration of womens achievement and a call for collective action to accelerate gender parity. You will be assigned either to the team supporting Wendys position or the team supporting Blakes position. However, many new inventions need financial help to get off the ground. In order to sell their coffee to fair trade exporting cooperatives, farmers must agree to limit their use of child labor, GMOs, herbicides, and pesticides. The role of women in the production system and the challenges they face, How gender equality and womens empowerment are core to Fair Trade USAs model and approach to gender, How Fair Trade USA monitors and evaluates its impact for women and girls through the Impact Management System (IMS), Testimonials from women in the fair trade movement. Nespresso has been committed to sustainable sourcing for 30+ years. How do FTF members offer financial support to producers? Theres happiness in the cooperative! Benefits of Fairtrade. Fairtrade International, accessed Nov. 25, 2014. http://www.fairtrade.net/benefits-of-fairtrade.html. Steve Stecklow and Erin White, At Some Retailers, Fair Trade Carries a Very High Price, The Wall Street Journal, June 8, 2004, http://online.wsj.com/article/0,,SB108664921254731069,00.html. Fair Trade's goal is to make life better for those involved in that process. Haight, Colleen. There are now several fair trade labor certification systems in the US market, including Fair Trade International USA, Fair Trade USA, and IMO Fair for Life. FTF members work directly with producers, cutting out middlemen, so they can keep products affordable for consumers and return a greater percentage of the price to the producers. One goal of the SFSI program was to streamline the process of small-scale farmers applying to become a part of the fair trade program. Fair trade means that an equitable partnership exists between producers of goods in developing countries and retailers in developed countries. 13. Is there another way of achieving the objectives of improving the lives of developing-country farmers and producers than the Fair Trade approach? Arguably, though, such retailers have a tendency to exaggerate the benefits of fair trade. This is why British consumers participated in Fairtrade fortnight throughout the past two weeks, recognising the work the Foundation has. FLO-CERT is a private, for-profit company that carries out certification audits for national organizations that wish to authorize local brands and vendors to use the Fairtrade label.6Fair Trade USA is Americas largest fair trade organization; notably, it does not use the Fairtrade trademark, as it resigned from FLO in 2011 out of disagreement with several aspects of the FLO system. 5. Even though fair trade may not be perfect, there is at least some regulations in place that ensure not only the promoting of economic development for developing countries, but also ensure food is secure through the audits performed (Jimenez, & Pulos, 2016). 4. About Us, TenThousandVillages.com, accessed October 5, 2013, http://www.tenthousandvillages.com/about-us. 10. Fair trade is not all that it is cracked up to be: It is a marketing gimmick aimed at socially conscious consumers. In fact, there are many different kinds of fair trade organizations: international nonprofit organizations, regional nonprofit organizations, local nonprofit organizations that certify fair trade brands, local nonprofit organizations that certify fair trade farming and exporting cooperatives, and finally, both nonprofit and for-profit inspection organizations that visit the farming cooperatives to determine whether they meet the criteria to be certified as fair trade. There is also substantial overlap between fair-trade coffees and "bird-friendly," shade-grown varieties, but one doesn't imply the other. We are a global organization that is co-owned by more than 1.8 million farmers and workers who earn fairer prices, build stronger communities, and have control over their futures. Myth: Fair trade is about paying developed world wages in the developing world. We are a global organization that is co-owned by more than 1.8 million farmers and workers who earn fairer prices, build stronger communities, and have control over their futures. Although the day wasnt officially recognized by the United Nations until 1977, celebrations date back to the early 20th century, spurred by labor and universal womens suffrage movements. Organic Food: Health Benefit or Marketing Ploy? Workers learn important leadership and organizing skills, enabling self-reliant grassroots-driven development. To maximize his income, therefore, he will choose to sell his lower quality coffee as Fair Trade coffee. A few types of perishable fruits and vegetables are more likely to be shipped by air, which raises more serious concerns. They can choose from an ever-growing range of great products. Nov. 2006, accessed October 5, 2013, http://www.european-fair-trade-association.org/efta/Doc/History.pdf. Good Corporation, Bad Corporation: Corporate Social Responsibility in the Global Economy by Guillermo C. Jimenez and Elizabeth Pulos is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Fair trade is meant to empower manufacturers and farmers in developing nations by providing them with privileged access to socially conscious consumers in the developed world.4. It would be more ethical to buy directly from known farmers, regardless of certification. But these concerns may be overstated: Fair-trade certification generally bans the use of virgin forest land, and there is little evidence that its small-scale adoption has caused any overproduction. We publish all our reports, showing both where we're working well and where we need to do better. Tonys Chocolonely has a big mission: to make 100% slave free the norm in chocolate. Fair wages are determined by a number of factors, including: Reality: Fair trade seeks to improve the lives of those in developing countries who frequently lack alternative sources of income. As a leader in the global movement to make trade fair, Fairtrade supports and challenges businesses and governments and connects farmers and workers with the people who buy their products. Fairtrade has developed a tool to to calculate the wage gap and the cost per box of banana of paying higher wages. Established as a corporation in 2014 at UAE, Fair-trade Global Sourcing FZE (FTGS) is a consortium of organic producers across the world who specialise in origin sourcing of niche and premium quality products from sustainable projects in Asia and Africa. Want to work with us? IMS provides Fair Trade USA and its partners with quantifiable ways to measure and evaluate every program in multiple product categories. Fairtrade is the most recognized and trusted sustainability label in the world. Fair trade changes lives by changing trade. We all play a role in building an inclusive world and creating change. When commodity markets crash, smallholder farmers suffer. Programs improving income-generating activities for women have been found to return $7 for every dollar spent. In the coffee sector, there are more than 300 exporting cooperatives in over 20 coffee-exporting nations. Tebicuarymi, Paraguari, Paraguay. Some compromise on what is realistic and achievable seems to be in the best interest of both sides. For producers, Fairtrade is unique in offering four important benefits: Shoppers can buy products in line with their values and principles. Most socially conscious consumers who are aware of fair trade simply assume that it signals that an item is somehow a good product, either for environmental reasons or because workers involved in production are well paid. Small-scale farmers and artisans in the developing world lack access to affordable financing, impeding their profitability. Certification means fairness to farmers and shoppers. World Trade should not adopt a 100% fair trade policy. The United States has a discourse on fair trade.. They based Certified Fair Trade on a cooperative approach where farmers join the Fair Trade Organization and follow best practices. About Us, FLO-CERT, accessed October 5, 2013, http://www.flo-cert.net/flo-cert/9.html. People make fair trade happen. Some researchers have found that fair trade labeling cooperatives are able to turn a profit while farmers, originally enticed by the promise of a higher per-pound price, fail to see any significant benefits. Most fair trade organizations, including Fair Trade USA and FLO, promote social and economic development projects in the farmers communities. 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