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Economics and Poverty

Economics and Poverty. Commodity Prices in Real Terms: Jute. Commodity Prices in Real Terms: Jute. Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004. Commodity Prices in Real Terms: Rubber. Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004.

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Economics and Poverty

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  1. Economics and Poverty

  2. Commodity Prices in Real Terms: Jute • Commodity Prices in Real Terms: Jute • Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

  3. Commodity Prices in Real Terms: Rubber • Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

  4. Commodity Prices in Real Terms: Cocoa • Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

  5. Commodity Prices in Real Terms: Coffee • Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

  6. Commodity Prices in Real Terms: Sugar • Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

  7. Commodity Prices in Real Terms: Bananas

  8. Commodity Prices in Real Terms: Tea • Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

  9. Commodity Prices in Real Terms: Cotton • Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

  10. The Real Cost of Cotton 1972 - 2007

  11. Direct and Indirect Impacts of Fairtrade Through trading standards - FLO estimates that in 2005 €80m went to producers in Fairtrade minimum price and premium; benefitting community more widely

  12. Minimum prices and Premium in Mali • Mali • Case Study Pricing in Mali 2005-2006 • The conventional cotton price fell 24% (€0.31 to €0.24) per kilo • Fairtrade Certified Cotton was established • A minimum Fairtrade price is €0.36 per kilo • Plus a premium of €0.05

  13. The Arabica Coffee Market 1989 – 2009:Comparison of Fairtrade and New York Prices

  14. The Cocoa Market 1994 – 2009: Comparison of Fairtrade and New York Prices

  15. Impact for Small-holders and Workers: 1. For Producersand their Families • Gerado Camacho, Coocafé; ‘The Fairtrade price allows us to survive as coffee farmers. It covers our costs of production, lets us send our kids to school, buy clothes and keep a roof over our heads.’

  16. “Women now join in the decision making. The women are now involved in the “Women now join in the decision making. The women are now involved in the harvest and decisions about production and conservation. We were part of the decision to build a new school.” • Bamakan Souko, • Dougourakoroni.

  17. Impacts for Small-holders and Workers: 2. For Producer Organisations Arturo Gomez, Coopetrabasur; ‘Before I was someone that took a box and loaded it onto a train. That was my only responsibility. I was just a farmer, who was an intermediary. In this new system I have become an international business man.’ 3. For Community Development Millennium Development Goals • Environmental Sustainability • Health • Education

  18. In one village, premium use in year 1: build 2 classrooms

  19. Premium use year 2: build 2 classrooms…

  20. …and the government builds 4

  21. Impact on Public Recognition of the FAIRTRADE Mark 1999 - 2008 Recognition = % of people who recognize the Fairtrade symbol NB. 2008 figures remain confidential. Source: MORI /TNS Omnibus studies

  22. Grassroots Social Movement • 427 Fairtrade Towns • 93 Fairtrade Universities • Over 5000 Fairtrade faith groups • Over 2000 schools signed up to the new Fairtrade School Scheme

  23. What is a Fairtrade School?www.fairtrade.org.uk/schools • A Fairtrade School is a school that has achieved five goals. • This usually takes at least a year and involves the whole school • A Fairtrade School is a school that….

  24. ...has set up a Fairtrade steering group

  25. ….has produced a Fairtrade School Policy

  26. ...is committed to selling Fairtrade products

  27. ...to promoting Fairtrade products

  28. ... and using Fairtrade products

  29. ...learns about Fairtrade issues across at least three subject areas

  30. ...promotes and takes action in school

  31. …and the wider community

  32. ... Your local supermarket?

  33. We publicise what we do... so that others will follow

  34. Fairtrade Links with Geography Curriculum National Curriculum KS1 Knowledge and Understanding of Places How places are linked to other places in the world National Curriculum KS2 Recognise how places fit together and are interdependent Environmental change and sustainable development National Curriculum KS3 Global citizenship Encourages critical thinking Interdependence Cultural understanding and diversity

  35. UK Sales of Fairtrade Products 1999 - 2008 • ales of Fairtrade Products 1999 - 2008 • 2008: 44% increase from 2007

  36. In 2008 Tate & Lyle announced all their retail sugar would be Fairtrade, benefiting 6000 sugar producers in Belize who will receive a Fairtrade premium of around £2 million in the first year alone.

  37. “I know that Fairtrade works. I have seen the positive impact on the banana growers in the Windwards Islands since we decided at the end of 2006 to move Sainsbury’s bananas to 100% Fairtrade. But we are not doing this for altruistic reasons – we know that our customers support the objectives of Fairtrade in helping guarantee farmers in the developing world a fair and stable price.” Justin King, CEO, Sainsbury’s

  38. Global Fairtrade Movement • Fairtrade Internationally • Working with • 632 producer organisations • across 3 continents • in 59 countries • Benefitting 7.5 million people

  39. So we can the balance of power tip

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