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". Houston, Holly, and Terry Wyer. London: Routledge, 2007. Development in Practice, Volume 15, Numbers 3 and 4, June 2005, Berndt, C.E. Coffee plantations are more likely to be fair trade certified if they use traditional farming practices with shading and without chemicals. Within producer-groups, the decisions about how the social premium will be spent is handled democratically, with transparency and participation. Garment factories in Asian countries including China, Burma, and Bangladesh consistently receive charges of human rights violations, including the use of child labour. Fair trade commodities are goods that have been exchanged from where they were grown or made to where they are purchased, and have been certified by a fair trade certification organization, such as Fair Trade USA or World Fair Trade Organization. These products may include promises of fair labor conditions, protection of the environment, and protection of human rights. In 2014, Fair Trade USA created its Capture Fisheries Program that led to the first instance of Fair Trade fish being sold globally in 2015. 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. It promotes sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers in developing countries. [67], University students have significantly increased their consumption of fair trade products over the last several decades. [34][citation needed] It has been argued that the approach of the fair trade system is too rooted in a Northern consumerist view of justice that Southern producers do not participate in setting. [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. [100] The company maintains that increasing its fair trade purchases would require an unprofitable reconstruction of the supply chain. [88] Fair trade handicraft and jewellery production has also shown a significant uplift over recent years, aided by North American and European online retailers developing direct relationships to import and sell the products online. This push received positive reactions from faculty and students. 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. In a hired labour situation, Fairtrade standards require a "joint body" to be set up with representatives from both the management and the employees. Business Unusual. [135] Fair trade activists have made gains with other companies: Sara Lee Corporation in 2002 and Procter & Gamble (the maker of Folgers) in 2003 agreed to begin selling a small amount of fair trade coffee. European Fair Trade Association (1998). Companies offering products that meet the Fairtrade standards may apply for licences to use one of the Fairtrade Certification Marks for those products. An additional 10% of the market price for their investment in social and environmental projects. An alternative trading organization (ATO) is usually a non-governmental organization (NGO) or mission-driven business aligned with the fair trade movement aiming "to contribute to the alleviation of poverty in developing regions of the world by establishing a system of trade that allows marginalized producers in developing regions to gain access to developed markets". In the early 1980s, alternative trading organizations faced major challenges: the novelty of some fair trade products began to wear off, demand reached a plateau, and some handicrafts began to look "tired and old fashioned" in the marketplace. Mendoza and Bastiaensen[156] calculated that in the UK only 1.6% to 18% of the extra charged for one product line reached the farmer. They place a significant importance on natural growing methods. The goods themselves had often no other function than to indicate that a donation had been made. In January 2004, Fairtrade Labelling Organizations International was divided into two independent organizations: Fairtrade International (FLO), which sets Fairtrade Standards and provides producer business support, and FLO-CERT, which inspects and certifies producer organizations. Review of African Political Economy 34.112 (2007): 267-77. ", 2005. Safeway Inc. began carrying fair trade coffee after individual consumers dropped off postcards asking for it.[100]. Much of the cocoa produced in Latin America is an organic and regulated by an Internal control system. Although many cotton plantations in these countries attained fair trade certification in the 1990s, participation in fair trade further ingrains existing power relations and inequalities that cause poverty in Africa rather than challenging them. The Fairtrade certification system covers a growing range of products, including bananas, honey, coffee, oranges, Cocoa bean, cocoa, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea, and wine. 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. [173], There are complaints that the standards are inappropriate and may harm producers, sometimes making them work several months more for little return. A guaranteed minimum price to protect producers from any potential falls in the global market. Women college students have a more favorable attitude than men toward buying fair trade products and they feel more morally obligated to do so. This page was last edited on 24 November 2020, at 08:34. They must have a written and implemented a school-wide fair trade policy. Fairtrade (one word) refers to FLO certified commodity and associated products. [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. FLO-CERT works with a network of around 100 independent inspectors that regularly visit producer and trade organizations and report back to FLO-CERT. 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. It reported that "The FT was also handed evidence of at least one coffee association that received an organic, Fair Trade or other certifications despite illegally growing some 20 per cent of its coffee in protected national forest land. In an effort to complement the Fairtrade certification system and allow for example handcraft producers to also sell their products outside worldshops, the World Fair Trade Organization (WFTO), formerly the International Fair Trade Association (founded 1989), launched a new Mark to identify fair trade organizations in 2004 (as opposed to products in the case of Fairtrade). 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. London and New York: Routledge. The nature of fair trade makes it a global phenomenon, therefore, there are diverse motives for understanding group formation related to fair trade. There are also complaints that Fairtrade deviates from the free market ideal of some economists. African cocoa-producing countries include Cameroon, Madagascar, São Tomé and Príncipe, Ghana, Tanzania, Uganda, and Côte d'Ivoire. Geiger-Onteo, Stephanie, and Eric J. Arnould. [9], There are several types of Fairtrade standards, including standards for contract situations,[10] for importers,[11] and also for the different 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. Most Fair Trade coffee is Coffea arabica, a type of coffee known to be grown at high altitudes. "[136], The company's founder, Martin Rapaport, as well as Kimberley Process initiators Ian Smillie and Global Witness, are among several industry insiders and observers who have called for greater checks and certification programs among many other programs that would ensure protection for miners and producers in developing countries. The social transformation caused by the fair trade movement also varies around the world. This supports the notion of fair trade practices as "moral economies". [21][pages needed] The cooperatives can, on average, sell only a third of their output as fair trade, because of lack of demand, and sell the rest at world prices. The established buyers of these products make up a niche market, which makes marketing for Fairtrade a challenge. Le commerce équitable est un système d'échange dont l'objectif est de parvenir à une meilleure égalité dans le commerce conventionnel1. 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. A 60% advance to producers to reduce the pressure of selling their product "immediately after harvest when its price is lowest". [124], However, making cotton and textiles fair trade does not always benefit laborers. Geoforum (2009): 74-83. [100] In 2006, The Hershey Company acquired Dagoba, an organic and fair trade chocolate brand. By the 1990s every western European country had established their own national version of the Max Havelaar initiative. The main premise of being a Fair Trade University for the University of California, San Diego is the promise between the university and the students about the continual effort by the university to increase the accessibility of fair trade-certified food and drinks and to encourage sustainability in other ways, such as buying from local, organic farmers and decreasing waste. [144], On July 6, 2006, the European Parliament unanimously adopted a resolution on fair trade, recognizing the benefits achieved by the fair trade movement, suggesting the development of an EU-wide policy on fair trade, defining criteria that need to be fulfilled under fair trade to protect it from abuse, and calling for greater support for fair trade (EP resolution "Fair Trade and development", 6 July 2006). [30] In the producing country, fair trade is marketed only by fair trade cooperatives, while other coffee is marketed by fair trade cooperatives (as uncertified coffee), by other cooperatives and by ordinary traders. The case of small coffee producers in Nicaragua. The European Parliament and Council Directive 2000/36/EC also suggested promoting Fair Trade. 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. [109] One solution for fair labor practices is for farmers to become part of an Agricultural cooperative. The Fairtrade Mark is owned and protected by Fairtrade International (FLO), on behalf of its 25-member and associate member Fairtrade producer networks … Financial Times, September 8. [88], Forced or unfair labor in textile production is not limited to developing countries. Fair Trade: A Beginner's Guide. [95], Internationally recognized Fair Trade coffee standards have been outlined by FLO and are as follows: small producers are grouped in democratic cooperatives or groups, buyers and sellers establish long-term, stable relationships, buyers must pay the producers at least the minimum Fair Trade price or when the market price is higher, they must pay the market price, and finally, buyers must also pay a social premium of 20 cents per pound of coffee to the producers. There is a North/South divide between fair trade consumers and producers. [147], While there have been studies claiming fair trade as beneficial and efficient,[148] other studies have been less favourable; showing limitations to fair trade benefits. [86] In Africa there are smallholder cooperatives and plantations which produce Fair Trade certified tea. These exports are valued at $24 million USD. For the more general article on the fair trade movement, see, Nicholls, A., & Opal, C. (2005). In the United States, there is more of a stigma against child labor than forced labor in general. 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. Furthermore, that year, the Cotonou Agreement made specific reference to the promotion of Fair Trade in article 23(g) and in the Compendium. The decline of segments of the handicrafts market forced fair trade supporters to rethink their business model and their goals. [22][pages needed][23][24][25][26][27][28][22] The exporting cooperative can spend the money in several ways. But it's India that grows the most Fairtrade certified cotton. 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. Brink Lindsey calls fair trade a "misguided attempt to make up for market failures" encouraging market inefficiencies and overproduction. Kilian, Jones, Pratt and Villalobos[23] talk of US Fairtrade coffee getting $5 per lb extra at retail, of which the exporter would have received only 2%. Fair trade cooperatives ensure fair and safe labor practices, including disallowing child labor. [13], Fairtrade standards for hired labour situations specify that employees receive minimum wages and collective bargaining. Much contention surrounds the issue of fair trade products becoming a part of large companies. (2003). Farmers are more likely to identify with organic farming than fair trade farming practices because organic farming is a very visible way that these farmers are different than their neighbors and it actually influences the way they farm. [12], Fairtrade standards for small farmers' organizations include requirements for democratic decision making, so that farmers may have a say in how the Fairtrade Premiums are invested. [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. "'Fair Trade' with Africa." The International Fairtrade Certification Mark is an independent certification mark used in over 50 countries. [20] Most fair trade marketers believe it is necessary to sell the products through supermarkets to get a sufficient volume of trade to affect the developing world. Fair trade is an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. [87] West African countries without strong fair trade industries are subject to deterioration in cocoa quality as they compete with other countries for a profit. Building toward credible standards—By 1 July 2005, the industry will develop and implement industry-wide standards of public certification that cocoa has been grown without any of the worst forms of child labor. Center for Strategic and International Studies, 6 Sept. 2012. Feminist columnists in several publication have written articles toward a pornography industry with mutual consent and no exploiting labor condition to actors and actresses. [83] The 165 FLO associations in Latin America and Caribbean are located in 14 countries and together export over 85% of the world's Fair Trade coffee. Establish a monitor and compliance with the standards. (2008) "The World of Organic Agriculture – Statistics and Emerging Trends 2008." The established buyers of these products make up a niche market, which makes marketing for Fairtrade … Berkeley: University of California, 2007, Willer, Helga; Yussefi-Menzler, Minou und Sorensen, Neil, (Hrsg.) Raynolds, Laura. [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. These commodities have different locations of production and number of farmers and workers covered for production and distribution. Called the FTO Mark,[78] it allows consumers to recognize registered Fair Trade Organizations worldwide and seeks to guarantee that standards are being implemented regarding working conditions, wages, child labour, and the environment. Fairtrade currently works with almost 46,000 cotton farmers in some of the poorest regions in the world. FLO figures[161] are that 40% of the money reaching the developing world is spent on "business and production", which would include these costs as well as costs incurred by any inefficiency and corruption in the cooperative or the marketing system. [8] FLO also has branches and field workers in Africa, Central and South America and China. In this study, thirty-four farmers were interviewed. The Fairtrade producers did not like the way they were treated. Signed joint statement on child labor to be witnessed at the ILO—By 1 December 2001, a statement must be made recognizing the need to end the worst forms of child labor and identify developmental alternatives for the children removed from labor. It will perform field projects and be a clearinghouse on best practices. Fairtrade inspection and certification are carried out by FLO-CERT, an independent, for-profit body created by Fairtrade International. Cooperatives foster the growth of democratic communities in which women have a voice despite being historically in underprivileged positions. Fairtrade International started with the coffee industry, but now covers a range of products such as cocoa, fruit, cotton, flowers, tea and others. Brewing Justice: Fair Trade Coffee, Sustainability, and Survival. [40], Many farmers around the world are unaware of fair trade practices that they could be implementing to earn a higher wage. [92] As of 1999, major importers of fair trade coffee included Germany, the Netherlands, Switzerland, and the United Kingdom. Weitzman, H. (2006, August 9). 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. Smallholding farmers frequently lack access not only to markets but also to resources that lead to sustainable cocoa farming practices. [91] Sixty percent of the fair trade market revolves around food products such as coffee, tea, cocoa, honey, and bananas. [106] Côte d'Ivoire exports over a third of the world's cocoa beans. "[182], Little money may reach the developing countries. [142][143], In 1994, the European Commission prepared the "Memo on alternative trade" in which it declared its support for strengthening fair trade in the South and North and its intention to establish an EC Working Group on Fair Trade. An Appeals Committee handles all appeals. The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers. Throughout the 1960s and 1970s, important segments of the fair trade movement worked to find markets for products from countries that were excluded from the mainstream trading channels for political reasons.

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