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

Fair Trade products and commercialisation

Fair Trade producers: some facts and figures

Benefits of Fair Trade

Fair Trade: a growing market

Conclusions

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). 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 …

Fair Trade products:

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. FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS

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

mainly small producer organisations, but also workers in factories, tea estates, plantations…

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… FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS

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. FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS

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 FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS

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