Fair Trade: a tool for creating greater market access for ACP small producers

Fair Trade: a tool for creating greater market access for ACP small producers CTA Briefing 16th April 2008 Anja Osterhaus Fair Trade Advocacy Co-ordinator FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS

Fair Trade: a tool for creating greater market access for ACP small producers
Aim of Fair Trade
Fair Trade products and commercialisation
Fair Trade producers: some facts and figures
Benefits of Fair Trade
Fair Trade: a growing market
Conclusions
FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS

Aim of Fair Trade:
Market access under fair terms, particularly for small and marginalized producers from DCs.
Means to achieve this aim:
Better trading conditions for more than 1.5 million small producers and poor workers,
Work towards greater trade justice (advocacy, campaigning).

Fair Trade products:
Handicrafts and processed goods: Jewellery, textiles, sportsballs, baskets, wooden products, statutes, ceramics… Food: Coffee, bananas, sugar, tea, cotton, spices, fresh fruit, juice …

Commercialisation of FT products:
1. Direct trading relationship between Fair Trade producer/exporter and Fair Trade importer/retailer,
2. Labelling route: conventional companies acquire Fairtrade label for products, bought and traded under fair conditions.
Fair Trade standards must be met to ensure compliance with Fair Trade principles.

mainly small producer organisations, but also workers in factories, tea estates, plantations…
Fair Trade producers:
60 countries in Africa, Latin America, Asia

Benefits of Fair Trade:
Fair price that covers costs of sustainable production and living (often stable minimum price plus premium),
Market access, help to overcome supply side constraints,
Capacity building, empowerment,
Sustainable production methods,
Payment in advance…

Stable minimum price: the example of coffee

Capacity building and empowerment

Work towards greater trade justice

Fair Trade: a growing market
Worldwide annual growth rates: around 40%
Around 2 billion Euros spent on FT in 2007
1 of 4 bananas sold in UK is Fair Trade
80% of Belgian consumers recognize Fair Trade
Tate & Lyle switch all own label sugar to FT
Cocoa & cotton sales doubled between 2005 & 2006
90% of bananas in Eastern Caribbean: Fair Trade
But: FT producers sell only 20% under fair terms and millions of poor producers do not yet have access to fair trading and working conditions.

Conclusions
Fair Trade is a tool for market access under fair conditions for small producers,
To participate in Fair Trade, standards must be met by producers and traders/importers,
Fair Trade market has a huge potential; depends on the demand from consumers and company/public purchasers,
Public policy support to Fair Trade is needed to support growth, in EU and ACP countries.
www.fairtrade-advocacy.org

Fair Trade: a tool for creating greater market access for ACP small producers

by Euforic Services on Apr 17, 2008

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Fair Trade: a tool for creating greater market access for ACP small producers — Presentation Transcript