[68], Consumers of fair trade products usually make the intentional choice to purchase fair trade goods based on attitude, moral norms, perceived behavioral control, and social norms. [83] There is a North/South divide of fair trade products with producers in the South and consumers in the North. [91] Sixty percent of the fair trade market revolves around food products such as coffee, tea, cocoa, honey, and bananas. Increased productivity requires technological innovations, and the coffee agroecosystem has been changing rapidly. "[85], Africa's exports come from the places such as South Africa, Ghana, Uganda, Tanzania and Kenya. While in 1992, a sales value ratio of 80% handcrafts to 20% agricultural goods was the norm, in 2002 handcrafts amounted to 25% of fair trade sales while commodity food lines were up at 69%.[64]. The coffee has to come from a certified fair trade cooperative, and there is a minimum price when the world market is oversupplied. 'Fair' coffee workers paid below minimum wage. 1. In L. Raynolds, D. D. Murray, & J. Wilkinson, Fair Trade: The Challenges of Transforming Globalization (pp. The movement focuses in particular on commodities, or products that are typically exported from developing countries to developed countries, but is also used in domestic markets (e.g., Brazil, England, and Bangladesh), most notably for handicrafts, Jaffee, Daniel. Berkeley: University of California, 2007, Willer, Helga; Yussefi-Menzler, Minou und Sorensen, Neil, (Hrsg.) (2011), "Fairtrade Standard for Small Producer Organizations", version: 01.05.2011_v1.1 p 5, Fairtrade Labelling Organizations International e.V. [46] Although hundreds of independent student organizations are active worldwide, most groups in North America are either affiliated with United Students for Fair Trade (USA, the Canadian Student Fair Trade Network (Canada), or Fair Trade Campaigns[47] (USA), which also houses Fair Trade Universities[46] and Fair Trade Schools.[48]. 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]. Geoforum, 2010. The case of small coffee producers in Nicaragua. [87], The marketing of fair trade cocoa to European consumers often portrays the cocoa farmers as dependent on western purchases for their livelihood and well-being. [40], Note: Customary spelling of Fairtrade is one word when referring to the FLO product labeling system, see Fairtrade certification. Fair trade is a social movement which tries to help people who make things in developing countries. Print. By 1 December 2001, industry will form an advisory group and formulate appropriate remedies to address the worst forms of child labor. Following are chocolate companies that use all or some fair trade cocoa in their chocolate: The Harkin-Engel Protocol, also commonly known as the Cocoa Protocol, is an international agreement that was created to end some of the world's worst forms of child labor, as well as forced labor in the cocoa industry. The involvement of church organizations has been and continues to be an integral part of the fair trade movement: The first attempts to commercialize fair trade goods in Northern markets were initiated in the 1940s and 1950s by religious groups and various politically oriented non-governmental organizations (NGOs). [31] In the fair trade debate there are many complaints of failure to enforce these standards, with producers, cooperatives, importers and packers profiting by evading them. The Dominican Republic is the largest producer of fair trade bananas, followed by Mexico, Ecuador, and Costa Rica. 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. 90(2) 65–69 March/April. [96] Large corporations that sell non-fair trade coffee take 55% of what consumers pay for coffee while only 10% goes to the producers. [107] Most cocoa comes from small family-run farms in West Africa. [180], Segments of the trade justice movement have also criticized fair trade in recent years for allegedly focusing too much on individual small producer groups while stopping short of advocating for immediate trade policy changes that would have a larger effect on disadvantaged producers' lives. Fair trade is a movement that believes it is unethical to pay producers in developing countries the market price if that price is too low to provide a sufficient quality of living. e.g. This would account for a quarter of the fair trade coffee purchases in the United States and 3% of Starbucks' total coffee purchases. Fair trade is an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. Additionally, Fair Trade USA, formerly a licensing agency for the Fairtrade International label, broke from the system and implemented its own fair trade labelling scheme, which expanded the scope of fair trade to include independent smallholders and estates for all crops. French author and RFI correspondent Jean-Pierre Boris championed this view in his 2005 book Commerce inéquitable. The Fairtrade certification system also attempts to promote long-term business relationships between buyers and sellers, crop prefinancing, and greater transparency throughout the supply chain and more. London: Sage Publications. Unshaded plantations allow for a higher density of Coffea trees, but negative effects include less protection from wind and more easily eroded soil. Working paper FREE-Cahier FREE n°5-2010; Doppler, F., & Cabañas, A.A. (2006). When growers feel like they have control over their own lives within the network of their cooperative, it can be very empowering. (2008) "The World of Organic Agriculture – Statistics and Emerging Trends 2008." Fair Trade Yearbook: Towards 2000. p.23 & 25. [citation needed] Packers in developed countries pay a fee to the Fairtrade Foundation for the right to use the brand and logo. Even the incomes of growers of fair trade coffee beans depend on the market value of coffee where it is consumed, so farmers of fair trade coffee do not necessarily live above the poverty line or get completely fair prices for their commodity. Thirdly, Fair Trade Universities are effective because they raise awareness about an issue and offer a solution. 94-116. 1 (February 2012), pp. [97], Fair trade certified commodities must adhere to sustainable agro-ecological practices, including reduction of chemical fertilizer use, prevention of erosion, and protection of forests. By 1968, the oversized newsprint publication the Whole Earth Catalog was connecting thousands of specialized merchants, artisans, and scientists directly with consumers who were interested in supporting independent producers, with the goal of bypassing corporate retail and department stores. The current minimum Fair Trade price for high-grade, washed Arabica coffee $1.40 per pound; the price increases to $1.70 per pound if the coffee is also organic. 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. Small Enterprise Development, 14(2), p. 42. [100] The company maintains that increasing its fair trade purchases would require an unprofitable reconstruction of the supply chain. Safeway Inc. began carrying fair trade coffee after individual consumers dropped off postcards asking for it.[100]. Furthermore, the same year, the European Parliament adopted the "Resolution on promoting fairness and solidarity in North South trade" (OJ C 44, 14 February 1994), a resolution voicing its support for fair trade. ", "Fair Trade Handmade Gifts & Crafts from International Artisans - Ten Thousand Villages", "Fair Trade Home Decor, Jewelry, Baskets, Gifts, Food: Shop Serrv", "Lutheran World Relief - Lutheran World Relief", "Village Markets - Empowering People to Work Their Way Out of Poverty Through Fair Trade", "Gender Differences in Psychosocial Determinants of University Students' Intentions to Buy Fair Trade Products", Fairtrade Labelling Organizations International e.V. Small growers dominate the production of coffee, especially in Latin American countries such as Peru. [29][self-published source][174][175][18], Adherence to fair trade standards by producers has been poor, and enforcement of standards by Fairtrade is weak. Fair trade definition, trade carried on under a fair-trade agreement. Establish a joint foundation—By 1 July 2002, industry will form a foundation to oversee efforts to eliminate the worst forms of child labor. Economist Philip Booth says that the selling techniques used by some sellers and some supporters of fair trade are bullying, misleading, and unethical. Overseen by a standard-setting body (FLO International) and a certification body (FLO-CERT), the system involves independent auditing of producers and traders to ensure the agreed standards are met. In 1998, the European Parliament adopted the "Resolution on Fair Trade" (OJ C 226/73, 20 July 1998), which was followed by the Commission in 1999 that adopted the "Communication from the Commission to the Council on 'Fair Trade'" COM(1999) 619 final, 29 November 1999. Lately, my feed has filled with ads for clothes that are organic, sustainably made, resulting from, Overall, the relative storage size limits are probably a, But here’s the best part: Everything GlobeIn sends you is, Citizenry pulls artisan home goods from groups who live up to, Post the Definition of fair-trade to Facebook, Share the Definition of fair-trade on Twitter, 'Cease' vs. 'Seize': Explaining the Difference. Financial Times; Weitzman, H. (2006, September 9). [5], There are several recognized fair trade certifiers, including Fairtrade International (formerly called FLO, Fairtrade Labelling Organizations International), IMO, Make Trade Fair and Eco-Social. Producers in the Dominican Republic have set up associations rather than cooperatives so that individual farmers can each own their own land but meet regularly. This means not just paying them more in the short term, but also helping them improve their skills, build up their communities, and protect the local environment so its resources will be there for future generations.Organizations involved in Fair Trade, including Fair Trade USA and the Fair Trade Federation, have outlined several basic principles for both buyers and sellers to follow:1. (2007). [144] In 2001 and 2002, several other EU papers explicitly mentioned fair trade, most notably the 2001 Green Paper on Corporate Social Responsibility and the 2002 Communication on Trade and Development. 2005-882, Small and Medium Enterprises, 2 August 2005). In 2005, in the European Commission communication "Policy Coherence for Development – Accelerating progress towards attaining the Millennium Development Goals", (COM(2005) 134 final, 12 April 2005), fair trade is mentioned as "a tool for poverty reduction and sustainable development". [88], Forced or unfair labor in textile production is not limited to developing countries. [40], A Fair Trade University is one that develops all aspects of fair trade practices in their coursework. These enterprises transform local communities, pioneer upcycling, empower women, champion refugee rights and practice organic farming. A year later, in 1997, the document was followed by a resolution adopted by the European Parliament, calling on the European Commission to support fair trade banana operators. Explore More. Some criticisms have been raised about fair trade systems. Weitzman, H.: 2006, The bitter cost of 'Fair Trade' coffee. Fair Trade Price: In the commodities market, fair trade price is the minimum price that importers must pay to the producers of some agricultural products such as coffee and banana. The cooperatives incur costs in reaching fair trade political standards, and these are incurred on all production, even if only a small amount is sold at fair trade prices. Can you spell these 10 commonly misspelled words? [86] Cocoa-producing countries in West Africa often form cooperatives that produce fair trade cocoa such as Kuapa Kokoo in Ghana. [62], The year 1965 saw the creation of the first alternative trading organization (ATO): that year, British NGO Oxfam launched "Helping-by-Selling", a program that sold imported handicrafts in Oxfam stores in the UK and from mail-order catalogues.[63]. Cooperatives pay farmers a fair price for their cocoa so farmers have enough money for food, clothes, and school fees. London and New York: Routledge. Direct Trade is better because fair trade doesn’t focus on quality. The FTO Mark offers Fair Trade Organizations (including handcrafts producers) definable standards which inform consumers, business partners, governments, and donors of the applicable trading standard. (2003). The goods themselves had often no other function than to indicate that a donation had been made. In the nineteenth century in Latin America, coffee plantations slowly began replacing sugarcane and subsistence crops. [67], University students have significantly increased their consumption of fair trade products over the last several decades. (2011) "Generic Fairtrade Trade Standard", Fairtrade International, (2011) "Explanatory Document for the Fairtrade Trade Standard, http://www.fairtrade.net/fileadmin/user_upload/content/2011-12-29_Explan_Doc_GTS_EN.pdf, Fairtrade International (FLO) (2011);"Fairtrade Standard for Coffee for Small Producer Organizations" version: 1 April 2011, Fairtrade Labelling Organizations International e.V. "Fair Trade Rooibos Tea: Connecting South African Producers and American Consumer Markets." Following are coffee roasters and companies that offer fair trade coffee or some roasts that are fair trade certified: Many countries that export cocoa rely on cocoa as their single export crop. By 2015, almost 75,000 cotton farmers in developing countries had obtained fair trade certification. Despite positive attitudes toward ethical products including fair trade commodities, consumers often are not willing to pay the higher price associated with fair trade coffee. Coffee is the fastest expanding fairly traded commodity, and an increasing number of producers are small farmers that own their own land and work in cooperatives. Coffee consumers can say they would be willing to pay a higher premium for fair trade coffee, but most consumers are actually more concerned with the brand, label, and flavor of the coffee. In Africa in particular, governments tax cocoa as their main source of revenue. The school or university must be dedicated to selling and using Fair Trade products. Much contention surrounds the issue of fair trade products becoming a part of large companies. in 2014 the Fairtrade Program Mark was introduced to create new sales opportunities, initially for cocoa, sugar and cotton producers. In 2005, French parliament member Antoine Herth issued the report "40 proposals to sustain the development of Fair Trade". [20] The Fairtrade brand is by far the biggest of the fair trade coffee brands. [40], Fair Trade Universities have been successful because they are a "feel good" movement. Please tell us where you read or heard it (including the quote, if possible). Fair trade does not do much for farmers when it does not challenge the system that marginalizes producers. These federations coordinate, promote, and facilitate the work of fair trade organizations. The second, is the World Fair Trade Organization (WFTO), of over 450 worldwide members, to which FTAANZ is one. 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. It often includes a commitment to environmental responsibility, as well. [40], Producers and producer-groups spend this social premium to support socioeconomic development in a variety of ways. Worldshops also typically organize various educational fair trade activities and play an active role in trade justice and other North-South political campaigns. Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Northern Social Movements and Fair Trade. [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. The report was followed the same year by a law, proposing to establish a commission to recognize fair trade Organisations (article 60 of law no. Fair Trade Fair trade is a component of the quality of life and social justice aspects of agricultural sustainability. Goods that are produced and sold in support of these aims usually carry a fair-trade label. [15][16][17][18][19] One proposed alternative to fair trade is direct trade, which eliminates the overhead of the fair trade certification and allows suppliers to receive higher prices much closer to the retail value of the end product. The fair trade minimum price means that when the world market price collapses, it is the non-fair trade farmers, particularly the poorest, who have to cut down their coffee trees. However, socially conscious consumers with a commitment to buying fair trade products are more likely to pay the premium associated with fair trade coffee. Fair Trade: A Beginner's Guide. Fair trade is based on partnership, which means that farmers and workers concerns should be as significant as other commercial considerations. Brewing Justice: Fair Trade Coffee, Sustainability, and Survival. Nevertheless, cooperatives such as fair trade-endorsed Kuapa Kokoo in Ghana are often the only Licensed Buying Companies that will give farmers a fair price and not cheat them or rig sales. Fair trade, global movement to improve the lives of farmers and workers in developing countries by ensuring that they have access to export markets and are paid a fair price for their products. Large transnational companies have begun to use fair trade commodities in their products. Nicholls, A. [99] Once enough consumers begin purchasing fair trade, companies are more likely to carry fair trade products. [29][self-published source][12][14][154][13], The Fairtrade Foundation does not monitor how much extra retailers charge for fair trade goods, so it is rarely possible to determine how much extra is charged or how much reaches the producers, in spite of unfair trading legislation. 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. London: Routledge, 2007. For instance, fair trade encouraged Nicaraguan farmers to switch to organic coffee, which resulted in a higher price per pound, but a lower net income because of higher costs and lower yields. Learn more about fair trade in the U.S. and abroad, as well as standards and certifications available to farms and businesses that focus on the social aspects of agricultural sustainability. Nine growers had erroneous or no knowledge of Fair Trade. What made you want to look up fair-trade? What Is Fair Trade? Most Fair Trade coffee is Coffea arabica, a type of coffee known to be grown at high altitudes. Harford, T: "The Undercover Economist. differentiate them from other members and explain why they have such an extensive knowledge of fair trade. ), "Explanatory Document for the Fairtrade Standard for Small Producer Organizations", Fairtrade Labelling Organizations International e.V. At present, the certification mark is used in over 50 countries and on dozens of different products, based on FLO's certification for coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, honey, fruit juices, nuts, fresh fruit, quinoa, herbs and spices, wine, footballs, etc. Fair trade cooperatives ensure fair and safe labor practices, including disallowing child labor. [92] Non-food commodities include crafts, textiles, and flowers. [172], Some people argue that these practices are justifiable: that strategic use of labeling may help embarrass (or encourage) major suppliers into changing their practices. Fairtrade labelling (usually simply Fairtrade or Fair Trade Certified in the United States) is a certification system designed to allow consumers to identify goods which meet agreed standards. Fair trade (two words) encompasses the wider fair trade movement, including the Fairtrade commodities and other artisan craft products. 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. [81], The University of Wisconsin- Oshkosh also offers many courses in many different disciplines that implement fair trade learning. [86] The FLO products Africa is known for are tea, cocoa, flowers and wine. These arrangements are not always assured and fair trade organizations can't always buy all of the cocoa available to them from cooperatives. 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. These exports are valued at $24 million USD. Booth, P. and L. Whetstone (2007) 'Half a Cheer for Fair Trade', Economic Affairs, 27, 2, 29–36; Sidwell, M. (2008) Unfair Trade, London: Adam Smith Institute. Slim pickings: Fairtrade cotton in West Africa. [11] Some research indicates that the implementation of certain fair trade standards can cause greater inequalities in some markets where these rigid rules are inappropriate for the specific market. Davies, IA and A Crane, "Ethical Decision Making in Fair Trade Companies". [8] In 2011, over 1.2 million farmers and workers in more than 60 countries participated in Fairtrade International's fair trade system, which included €65 million in fairtrade premium paid to producers for use developing their communities. It will perform field projects and be a clearinghouse on best practices. [41], Some producers also profit from the indirect benefits of fair trade practices. 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. These example sentences are selected automatically from various online news sources to reflect current usage of the word 'fair-trade.' & Opal, C. (2004). The movement also has an established history, making it a true movement rather than just a fad. They struggle with meeting the consumer tastes in North America and Europe. To begin the process, the university as a whole agreed that it would need support from four institutional groups—faculty, staff, support staff, and students—to maximize support and educational efforts. [22][pages needed][23][24][25][26][27][28][22] The exporting cooperative can spend the money in several ways. The concept caught on: in the ensuing years, similar non-profit Fairtrade labelling organizations were set up in other European countries and North America. A solution to this is to change the type of cocoa tree being farmed. Geiger-Onteo, Stephanie, and Eric J. Arnould. [40], As far as farmers' satisfaction with the fair trade system, growers want consumers to know that fair trade has provided important support to their families and their cooperative. [87] These violations conflict with the principles outlined by fair trade certifiers. Fair trade, defined simply, is when producers in developing countries are paid a fair price for their work, by companies in developed countries.