The Who, What, When, Where and Why of Fair Trade
Posted by Lisa Carey
What is Fair Trade? Who does it benefit and how? How can I be involved in Fair Trade practices?
What Does Fair Trade Mean?
Fair trade is both a social and market based “movement” that is to empower producers of certain products, particularly those of developing countries and promotes sustainability. This movement began around 1948 through many community, church and charitable organizations. As it has grown fair trade has also moved into supermarkets and shops. The basic principals include:
- The encouragement of sustainable production techniques for these goods
- Forced or exploited child labor practices are not permitted
- Equal opportunity employment
- Producers receive a fair price and for some farmers a sustained minimum price.
- Healthy and safe working conditions
- Access to financial and technical assistance
- Sustainable production techniques are encouraged
- Direct long term relationships
- All aspects of trade and production are open to public accountability
The movement not only advocates social and environmental standards for growing and exporting these goods; but also fair and healthy work conditions and a fair price to be paid. The main goal is to help the producers of farm products and handmade crafts to become more self sufficient, in several different ways.
What products does Fair Trade focus on?
The primary focus is on the exporting of goods from developing countries, such as Latin America, Asia and Africa, to “developed countries” such as the United States and Europe. The focus is on products such as handmade items, flowers, fruit, wine, cotton, honey, coffee, cocoa, sugar, tea and bananas. This system of encouraging sustainability, fairness and justice has to date benefitted over 800,000 farmers which have been organized into cooperatives and unions in 48 countries.
What are the benefits of Fair Trade?
-Farmers, artisans and other producers of fair trade products are guaranteed a minimum floor price, premium pricing for organic products.
- Safer working conditions for producers of Fair Trade products.
- The elimination of middlemen (which can drive prices up) as well as provides farmers and artisans with necessary business skills.
-A democratic process is used to determine how profits to the community are to be used, which may lead to more democratic politics in many developing countries.
-Community development, that not only provides funds and assistance with educational and health issues but also provides training for business, crops, organic certification, scholarship programs and learning developed countries business practices.
-Harmful chemicals and “GMO’s” (genetically modified organisms) are prohibited. This provides many benefits: healthier foods, environmental sustainability and the incorporation of cultural growing practices.
Fair Trade Pricing
The Fair Trade Minimum Price is a price which is guaranteed to cover the costs of production, it is always the minimum price paid for a good or product, however, it can increase based on market prices.
The Fairtrade Premium is a separate payment designed to assist the community from which the producer works with social and economic development. The producers decide how the funds will be spent; however there is an accountability process through the Fair Trade Labeling Organizations International (FLO). These funds are most commonly used for improvements in the community in the areas of health and education.
How does Fair Trade benefit consumers?
Purchasing fair trade products benefits the consumer in several different ways:
-Consumers can feel good about the products you purchase knowing that they have been produced in fair and environmentally working conditions, as well as providing developing countries with much needed employment
-Consumers can actually save money purchasing fair trade products. For example, one pound of a fair trade coffee may cost $10-$12, but the same pound of coffee at a store or coffee chain may cost up to $54.00. Or maybe you choose to buy finger puppet toys handmade in Latin American, as opposed to purchasing a battery powered, possibly lead paint contaminated toys from China, paying twice as much. Another benefit may be the lessening of foreign aid to developing countries as they become more self-sustaining.
-Consumers who purchase fair trade products and handmade items can feel stronger in their buying power and their ability to influence the market.
-Consumers can be part of a social justice movement.
-Consumers who purchase fair trade products can begin a chain of supply and demand that will positively impact producers of these products.
How does fair trade benefit the environment?
-The use of organic growing methods, which are more environmentally friendly and sustainable
-Farmers involved in fair trade growing practices disperse their plants throughout a region, a more environmentally friendly method.
-Fair trade coffee farmer’s plant shade over their plants, which is key to protecting certain species of birds.
How can consumers be sure a product is a “Fair Trade” product?
Transfair USA is an independent, nonprofit organization that is a third party certifier of fair trade products in the United States. It is one of 20 members of the FLO (FairTrade Labeling Organization). Their auditing system follows a product from farm to finished product and distribution. USA companies are permitted to use the Fair Trade Certified Label on products that meet their rigorous standards. Fair Trade Certification is available for such products as herbs, coffee, tea, vanilla, rice, sugar, chocolate, cocoa, and fresh fruit.
Some may argue that those in developing countries need to keep their products for use in their own country. However, developed countries contain the least amount of people but the highest number of consumers. As a result, developing countries can benefit from both the growth of products now available to them at home, but in the ability to export these products providing growth for their communities and country.
How can I be part of Fair Trade?
There are several ways to be part of fair trade. First you can purchase fair trade products, goods and gifts. These retailers offer many fair trade products: Costco, Fred Meyer, Giant, Harris Teeter, Kroger, Publix, Quality Food Center, Safeway, Sam’s Club, Shaw’s Supermarket, Stop ‘n’ Shop, Target, Trader Joe’s, Wal-Mart, Wegman’s, Whole Foods Market, Wild Oats,
Did you know these restaurants and stores offer fair trade products?
Ben & Jerry’s Scoop Shops – Ask for Vanilla, Chocolate, Coffee or Coffee Heath Bar Crunch ice cream.
Bruegger’s – Ask for their daily Fair Trade Certified brewed coffee.
Caribou Coffee – Ask for the Fair Trade Blend.
Dunkin’ Donuts – Order any hot or iced espresso drink.
Einstein Bagels – Ask for their Global Village Fair Trade Blend.
Noah’s Bagels – Ask for their daily Fair Trade Certified brewed coffee.
Peet’s Coffee and Tea – Ask for the Fair Trade Blend.
Seattle’s Best Coffee – Ask for the Fair Trade Certified Organic French Roast.
Starbucks Coffee – Ask for Cafe Estima.
Tully’s Coffee – Order any hot or iced espresso drink.
You may also purchase food items and gifts through the Catholic Relief Services, Fair Trade Program. The Fair Trade Federation provides information on members, products and where you can purchase a large number of goods and products that are fair trade produced. Start your own fair trade business. For example a friend of mine started a fair trade fudge store. She uses only fair trade products like chocolate. Try to get your local grocery store to offer more fair trade products. Make donations or participate in fundraiser. Get involved in your community to become a Fair Trade Town. Include your community group, school, church or organization in your fair trade practices. In my own church, we were offered opportunities to purchase items made in Israel, such as icons, statues, baskets, and several other symbols of worship. When you travel locate fair trade accomodations.
There are many ways to get involved in the Fair Trade movement. While there are arguments against fair trade, there are many reasons and benefits to choose fair trade products and goods whenever possible. The producers, the communities, the consumer and the environment can all benefit from purchasing fair trade products. Now, that is “going green and saving green!”
Popularity: 1% [?]
3 Responses to “The Who, What, When, Where and Why of Fair Trade”
-
Hello says:
I think this is a very good conclusion of fair trade but you could of listed some examples of countries that are involved in fair trade
xx -
Hi Patrick, I really enjoyed reading your blog posting here about fair trade. I’d love to link to it and ideally use some or all of it on my website, EarthDivas.com. We just updated our website and the Fair Trade section should go live tomorrow. I really want to thank you for taking the time to write such a great article about fair trade. We need more people like you.
There is this great green movement to start using more sustainable products and I’m really hoping this helps raise awareness of fair trade products. I’d really love to keep this discussion going, and get others involved. When u get a chance, pls check out the fair trade section on our website. There are a few things that I think are really critical to any fair trade company, and these be honest and transparent. Tell everyone how much the worker/artisans earn. How much do they normally make and how much extra do you pay. I think focusing on pay in the #1 goal of any fair trade company, but also, companies should show what other things they are doing to help the worker/artisans. We focus on working conditions – are the clean and comfortable, warm in the winter, well lighted and safe. We also focus on training… when business is slow, we pay more experienced artisans to train the newer folks. I’m somewhat unique in this business in that i don’t take a salary or any compensation and 100% of the profits go back to the artisans. Because my wife works full time and pays the bills, I can do this. But there are many many other companies that do the same or very similar… the key is that the money has to be paid directly to the aritsans and not a middle man. Anyway… thank you again and please keep posting articles like this on fair trade and helping to raise awareness… we really need to keep spreading the word. Thank You!!
Very nice summary of fair trade. I work for Shard Interest, the world’s only 100% fair trade lender. I mention this only in that we have a network of members and ambassadors in the UK that are available to speak at events on the benefits of fair trade. So for those of you in the UK that would like to learn more about fair trade and how you or your organisation can support fair trade please feel free to email me – patrick.dodd (at) shared-interest.com