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Fairtrade for first timers 10 October 2009. What is fair trade?.
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Fairtrade for first timers 10 October 2009
What is fair trade? Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South
Commodity Prices in Real Terms: Cocoa Source: FAO Commodities and Trade Division
Commodity Prices in Real Terms: Tea Source: FAO Commodities and Trade Division
Commodity Prices in Real Terms: Coffee Source: FAO Commodities and Trade Division
Commodity Prices in Real Terms: Cotton Source: FAO Commodities and Trade Division
Why is Fairtrade needed? 2 billion people on less than $2 a day Unfair trade rules keep millions of farmers trapped in trade poverty unable to plan for tomorrow let alone the future Rising food and fuel costs are hitting the poorest hardest – 100 m more people in extreme hunger as a result of global food crisis Effects of climate change and erratic weather patterns mean reduced harvests and an uncertain future for many communities in the global south
What does Fairtrade deliver? • A trading model set up to tackle poverty • Working to improve the situation of the farmer at the bottom of the supply chain • Not charity but better trading conditions and paying a fair and stable price to the farmer of the crop
Over to you ... • Why is Fairtrade needed?
Setting a minimum price … The Guarantees • Fairtrade sets a Minimum Price + Social Premium • Covers sustainable costs of production • Set by region or country • Graded for conventional and organic
Comparison of Minimum Fairtrade Price and World Market Price for Coffee Coffee Prices 1989-2005:
The Guarantees The Social Premium
Greater respect and protection for the environment The Guarantees • Reduction in use of pesticides • Development of Integrated Crop Management • Ongoing improvements in the environmental sustainability of the production
Fairtrade Internationally • Working with • 632 producer organisations • across 3 continents • in 59 countries
Are you awake? Over to you What is the Fairtrade minimum price? What is the Fairtrade premium? Name some of the countries where Fairtrade products come from?
How does Fairtrade operate? Internationally FLO FLO - Cert FLO EV Separate legal entity Certifies Producer groups Registered supply chains Annual auditing Develop standards Formulate Price + Premium levels Producer Business Unit (PBU) – provides in country support 20 National Labelling Initiatives UK: Fairtrade Foundation Sweden: Rattvisemarkt Mexico: Comercio Justo South Africa: Fairtrade Label South Africa France, Switzerland, Netherlands, Norway, Belgium, Denmark: Max Havelaar USA, Canada, Germany, Luxembourg, Italy: Transfair Ireland: Fairtrade Mark Japan: Fairtrade Label Austria: Fairtrade Australia & NZ: Fairtrade Labelling
Fairtrade Foundation In the UK ‘A world in which every person, through their work, can sustain their families and communities with dignity’
Fairtrade Foundation What we do • Promote the sales of Fairtrade certified goods through our communications work • Provide information to enable the sourcing of Fairtrade certified crops • Record and provide transparency across the supply chain • Independent certification, granting the use of the Fairtrade mark through a license
The FAIRTRADEMark • An independent consumer label which appears on products as a guarantee that disadvantaged producers in the developing world are getting a better deal.
A Brief Guide Licensing a Product • Companies contact the Fairtrade Foundation • Check that product can be licensed: - Commodity covered by Fairtrade Standard - Complies with the rules and policies of Fairtrade Foundation and FLO. • Assist company to source Fairtrade ingredients and ensure supply chain is registered with FLO-CERT • Companies apply for products and artwork on packaging • Products licensed and launched into market
Fairtrade Foundation Our history Some of our founders…
Over to you What does FLO stand for? What is FLO responsible for? What is the Fairtrade Foundation’s relationship to FLO?
How? 27
Over to you What is the FAIRTRADE Mark and why was it created? When did the first products with the FAIRTRADE Mark appear on shelves in the UK? How has Fairtrade grown?
Find out more - Producers
www.fairtrade.org.uk/thebigswap Fairtrade Fortnight 2010
Take action • Choose Fairtrade • If you can’t choose – ask! • Tell a friend • Get swapping in Fairtrade Fortnight • Take action in your school, college, university, church, mosque or community • Take action on trade justice • Stay in touch ….
Thank you Any questions? Hannah Reed - Campaigns Manager Hannah.reed@fairtrade.org.uk