The Fairtrade Mark is owned and protected by Fairtrade International (FLO), on behalf of its 25-member and associate member Fairtrade producer networks … African cocoa-producing countries include Cameroon, Madagascar, São Tomé and Príncipe, Ghana, Tanzania, Uganda, and Côte d'Ivoire. Three growers explained a deep understanding of fair trade, showing a knowledge of both fair market principles and how fair trade affects them socially. They often cut out any intermediaries in the import chain. In April 2000, Starbucks began offering fair trade coffee in all of their stores. Evidence from Costa Rica and Guatemala and implications for policy. Moore, G., Gibbon, J., & Slack, R.: 2006, 'The mainstreaming of Fair Trade: a macromarketing perspective', Journal of Strategic Marketing, 14, 329–52. While this appears to be agreed by proponents and critics of fair trade,[160] there is a dearth of economic studies setting out the actual revenues and what the money was spent on. Fair Trade: Benefits and Drawbacks for Producers. Student groups have also been increasingly active in the past years promoting fair trade products. [139], The concept of fair trade also influence the porn industry. Many of them came to believe it was the movement's responsibility to address the issue and remedies usable in the ongoing crisis in the industry. It will perform field projects and be a clearinghouse on best practices. [29], The marketing system for fair trade and non-fair trade coffee is identical in the consuming and developing countries, using mostly the same importing, packing, distributing, and retailing firms used worldwide. Usually, this means a producer in a developing country and consumers in industrialized countries. p. 12. Smillie and Global Witness have since withdrawn support for the Kimberley Process. The labeling initiative also allowed customers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the producers at the end of the supply chain. [40], A Fair Trade University is one that develops all aspects of fair trade practices in their coursework. Unshaded plantations allow for a higher density of Coffea trees, but negative effects include less protection from wind and more easily eroded soil. Fairtrade works with farmers who’ve formed small producer organizations, as well as contract production organizations in the process of forming independent cooperatives. An important factor of the fair trade social premium is that the producers or producer-groups decide where and how it is spent. [99] Once enough consumers begin purchasing fair trade, companies are more likely to carry fair trade products. The minimum price that Fair trade pays allows cotton farmers to sustain and improve their livelihoods. Thirty-eight percent of producer-groups spend the social premium in its entirety on themselves, but the rest invest in public goods, like paying for teachers' salaries, providing a community health care clinic, and improving infrastructure, such as bringing in electricity and bettering roads. In a hired labour situation, Fairtrade standards require a "joint body" to be set up with representatives from both the management and the employees. "A Place Unbecoming: The Coffee Farm of Northern Latin America." They may make transparent corporate vulnerabilities that activists can exploit. (2003). [87] These violations conflict with the principles outlined by fair trade certifiers. Cocoa is a permanent crop, which means that it occupies land for long periods of time and does not need to be replanted after each harvest. Major cocoa-producing countries are Indonesia, Malaysia, and Papua New Guinea. [106] Côte d'Ivoire exports over a third of the world's cocoa beans. Fair trade during that period was often seen as a political gesture against neo-imperialism: radical student movements began targeting multinational corporations, and concerns that traditional business models were fundamentally flawed started to emerge. Thousands of volunteers sold coffee from Angola and Nicaragua in worldshops, in the back of churches, from their homes, and from stands in public places, using the products as a vehicle to deliver their message: give disadvantaged producers in developing countries a fair chance on the world's market. [ Dutch Province of Groningen wins summary brought by Doug Egberts and can continue specifying fair trade coffee], Booth, Philip "Don't bully the faithful into buying Fairtrade", The Catholic Herald, 20 February 2009, Barrientos, S., Conroy, M.E., & Jones, E. (2007). This protects the biodiversity of the ecosystem and ensures that the land will be usable for farming in the future and not just for short-term planting. This would account for a quarter of the fair trade coffee purchases in the United States and 3% of Starbucks' total coffee purchases. They also include requirements for capacity building and economic strengthening of the organization. They could, however, identify fair trade based on some of its possible benefits to their community. [41], Some producers also profit from the indirect benefits of fair trade practices. The Dutch province of Groningen was sued in 2007 by coffee supplier Douwe Egberts for explicitly requiring its coffee suppliers to meet fair trade criteria, most notably the payment of a minimum price and a development premium to producer cooperatives. [71][72][73][74][75][76] In practice, when price and credit are discussed, "producer" means the exporting organization, "For small producers' organizations, payment must be made directly to the certified small producers' organization". It is useful to include of measure of moral norms to improve the predictive power of intentions to buy fair trade over the basic predictors, like attitude and perceived behavioral control. [6][7], The fair trade movement is popular in the UK, where there are 500 Fairtrade towns, 118 universities, over 6,000 churches, and over 4,000 UK schools registered in the Fairtrade Schools Scheme. ", British Food Journal. By the 1990s every western European country had established their own national version of the Max Havelaar initiative. Philosophically, the grassroots political-action agenda of these organizations associates them with progressive political causes active since the 1960s: foremost, a belief in collective action and commitment to moral principles based on social, economic and trade justice. The cooperatives sometimes pay farmers a higher price than farmers do, sometimes less, but there is no evidence on which is more common. [9] According to Fairtrade International, nearly six out of ten consumers have seen the Fairtrade mark and almost nine in ten of them trust it.[9]. The most successful cooperatives appear to spend a third of the extra price received on this: some less successful cooperatives spend more than they gain. In 2007, the Director of the Environmental Studies program at the University of Wisconsin-Oshkosh, David Barnhill, started a push to become the first Fair Trade University. These federations coordinate, promote, and facilitate the work of fair trade organizations. "Fair Trade Performance in a Competitive Market." [171] There are problems with the use of boycott campaigns and other pressure to force sellers to stock a product they think ethically suspect. Fair trade organizations, backed by consumers, are actively engaged in supporting producers, raising awareness, and campaigning for changes in the rules and practice of conventional international trade. The International Fairtrade Certification Mark is an independent certification mark used in over 50 countries. [40], A study of coffee growers in Guatemala illustrates the effect of fair trade practices on growers. Rapaport Fair Trade was established with the goal "to provide ethical education for jewelry suppliers, buyers, first time or seasoned diamond buyers, social activists, students, and anyone interested in jewelry, trends, and ethical luxury. [106], Cocoa is farmed in the tropical regions of West Africa, Southeast Asia, and Latin America. The initiative aimed at bringing the principles of fair trade to the retail sector by selling almost exclusively goods produced under fair trade terms in "underdeveloped regions". Brussels: Fair Trade Advocacy Office, Max Havelaar Foundation (2007). The program "requires fishermen to source and trade according to standards that protect fundamental human rights, prevent forced and child labor, establish safe working conditions, regulate work hours and benefits, and enable responsible resource management."[134]. Safeway Inc. began carrying fair trade coffee after individual consumers dropped off postcards asking for it.[100]. Charges of use of sweatshop labor are endemic in the United States. Africa and other developing countries received low prices for their exported commodities such as cocoa, which caused poverty to abound. [21], "Fairtrade" redirects here. [10], One reason for high prices is that fair trade farmers have to sell through a monopsonist cooperative, which may be inefficient or corrupt – certainly some private traders are more efficient than some cooperatives. They buy capital, like trucks and machinery, and education for their members, like organic farming education. There is a North/South divide between fair trade consumers and producers. The European Parliament and Council Directive 2000/36/EC also suggested promoting Fair Trade. By 2015, almost 75,000 cotton farmers in developing countries had obtained fair trade certification. [19], Certified organizations such as cooperatives have to pay FLO-CERT a fee to become certified and a further annual fee for audit and continued certification[18] The first year certification fee per unit sold as "Fairtrade certified" varies but has been over 6c/lb with an annual fee of 3c/lb to 3.4c/lb for coffee up to 2006 in some countries, at a time when the "Fairtrade premium" was 5c to 10c/lb. rather than establishing a new fairer, fully autonomous (i.e., government monopoly) trading system. Activism and ethical consumption not only promote fair trade but also act against powerful corporations such as Mars, Incorporated that refuse to acknowledge the use of forced child labor in the harvesting of their cocoa.[100]. This argument is supported by mainstream economists, not just free marketers. Discrepancies in the perspectives of these southern producers and northern consumers are often the source of ethical dilemmas such as how the purchasing power of consumers may or may not promote the development of southern countries. One example of a school who have led the way with their focus on Fairtrade cotton is Moorside Primary School from Lancaster. FLO is an umbrella organization whose mission is to set fair trade standards, support, inspect, and certify disadvantaged producers, and harmonize the fair trade message across the movement.[66]. The Fairtrade certification initiative was created to form a new method for economic trade. Social Problems, Vol. These principles include adherence to ILO agreements such as those banning child and slave labour, guaranteeing a safe workplace and the right to unionise, adherence to the United Nations charter of human rights, a fair price that covers the cost of production and facilitates social development, and protection and conservation of the environment. [98], As coffee becomes one of the most important export crops in certain regions such as northern Latin America, nature and agriculture are transformed. [20], Fairtrade farmers also have to meet a large range of criteria on production: there are limits on using child labour, pesticides, herbicides, genetically modified products and so on. Within producer-groups, the decisions about how the social premium will be spent is handled democratically, with transparency and participation. Lastly, buying products from producers in developing countries at a fair price is a more efficient way of promoting sustainable development than traditional charity and aid. "Fair Trade makes the consumers think and therefore it is even more valuable. One common way to spend the social premium of fair trade is to privately invest in public goods that infrastructure and the government are lacking in. [100] The company maintains that increasing its fair trade purchases would require an unprofitable reconstruction of the supply chain. Or they may encourage ordinary people to get involved with broader projects of social change. They cannot choose the buyer who offers the best price, or switch when their cooperative is going bankrupt[165] if they wish to retain fairtrade status. Anecdotes state that farmers were paid more or less by traders than by fair trade cooperatives. Moreover, several fair trade supporters during this period were worried by the contemporary effect on small farmers of structural reforms in the agricultural sector as well as the fall in commodity prices. Immigrant women work long hours and receive less than minimum wage. The University of California at San Diego understood the efforts of the Fairtrade Foundation in the UK, but they recognized they wanted to be more detailed about how their declaration as a Fair Trade University would make an actual change in the way on-campus franchises do business with the university. The sale of fair trade handicrafts online has been of particular importance in aiding the development of female artisans in Latin America. Geoforum, 2010. Peter Mandelson, EU Commissioner for External Trade, responded that the resolution will be well received at the European Commission. A key part of the fair trade initiative is to inform consumers through innovative marketing. Douwe Egberts, which sells a number of coffee brands under self-developed ethical criteria, believed the requirements were discriminatory. The solution is an easy one for college students to handle, just paying about five cents more for a cup of coffee or tea can make a real difference.[40]. Some criticisms have been raised about fair trade systems. Fairtrade International was established in 1997. Ransom, David. Fairtrade works with farmers who’ve formed small producer organizations, as well as contract production organizations in the process of forming independent cooperatives. The movement also has an established history, making it a true movement rather than just a fad. [41] Fair trade farmers are also more likely to attribute their higher paid prices to the quality of their products rather than fair market prices. Worldshops are often not-for-profit organizations and run by locally based volunteer networks. [97], The effectiveness of Fairtrade is questionable; workers on Fairtrade farms have a lower standard of living than on similar farms outside the Fairtrade system. [81], In the spring of 2010, the University of California, San Diego became the second Fair Trade University in the United States. They also wanted consumers to know that fair trade is important for supporting their families and their cooperatives. The Fairtrade International certification system covers a wide range of products, including banana, coffee, cocoa, cotton, cane sugar, flowers and plants, honey, dried fruit, fruit juices, herbs, spices, tea, nuts and vegetables. European Fair Trade Association (1998). TransFair USA has apparently elected to continue with its own Fair Trade Certified Mark for the time being,[5] while the Canadian organization currently allows certified products to carry either mark, it is transitioning toward the sole use of the International Fairtrade Certification Mark. [84] Amidst the continuous growth, "[p]urchasing patterns of fairtrade products have remained strong despite the global economic downturn. One British café chain was passing on less than one percent of the extra charged to the exporting cooperative;[29] in Finland, Valkila, Haaparanta and Niemi[155] found that consumers paid much more for Fairtrade, and that only 11.5% reached the exporter. The Fairtrade International certification system covers a wide range of products, including banana, coffee, cocoa, cotton, cane sugar, flowers and plants, honey, dried … The concept of a Fair Trade school or Fair Trade university emerged from the United Kingdom, where the Fairtrade Foundation now maintains a list of colleges and schools that comply with the needed requirements to be labeled such a university. In four cases it has been possible to find out. Fairtrade International started with the coffee industry, but now covers a range of products such as cocoa, fruit, cotton, flowers, tea and others. Activist groups are vital in educating consumers about the unethical aspects of unfair trade and promoting demand for fairly traded commodities. Consumers in the United States are willing to suspend the importation of textiles made with child labor in other countries but do not expect their exports to be suspended by other countries, even when produced using forced labor.[126]. It appears on products as an independent guarantee that a product has been produced according to Fairtrade political standards. FLO-CERT, the for-profit side, handles producer certification, inspecting and certifying producer organizations in more than 50 countries in Africa, Asia, and Latin America. The goals of the launch were to improve the visibility of the Mark on supermarket shelves, facilitate cross border trade, and simplify procedures for both producers and importers. The ethics of buying fair trade from a company that is not committed to the cause are questionable; these products are only making a small dent in a big company even though these companies' products account for a significant portion of global fair trade.[100]. As plant and tree diversity decreased, so did animal diversity. Geographical Review: 89(4): 554-579. Positive and normative analysis from a value chain perspective', Journal of Business Ethics, 86, 3–26. The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers. Raynolds, Laura T., and Siphelo Unathi Ngcwangu. The Max Havelaar seal, which was based on a fictional character, was established "to license existing roasters and retailers who complied with its fair trade criteria". Fair trade does not do much for farmers when it does not challenge the system that marginalizes producers. London and New York: Routledge. Initially, while the Max Havelaars and the Transfairs co-operated product by product with equivalent standards and producer lists there was no contractual agreement to ensure global standards. Showing African cocoa producers in this way is problematic because it is reminiscent of the imperialistic view that Africans cannot live happily without the help of westerners. Nine growers had erroneous or no knowledge of Fair Trade. They worked with other associations as well as the mass media to spread the message and create an awareness of their fair trade initiative. Bolivia has fair trade cooperatives that permit a fair share of money for cocoa producers. For example, Costa Rican coffee cooperative Coocafé has supported hundreds of children and youth at school and university through the financing of scholarships from funding from their fair trade social premium. Berkeley: University of California, 2007, Willer, Helga; Yussefi-Menzler, Minou und Sorensen, Neil, (Hrsg.) ", 2005. [87] Fundación Solidaridad was created in Chile to increase the earnings and social participation of handicraft producers.

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