General Overview of the Fairtrade


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Fairtrade is an alternative approach to trade based on a partnership between producers and consumers. Fairtrade works with businesses to offer producers a better deal and improved terms of trade. This allows them the opportunity to improve their lives and plan for their future. Fairtrade offers consumers a powerful way to reduce poverty through their every day shopping.

When a product carries the FAIRTRADE Mark it means the producers and traders have met Fairtrade Standards. The Standards are designed to address the imbalance of power in trading relationships, unstable markets and the injustices of conventional trade.

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General Overview of the Fairtrade

  1. 1. MONITORING THE SCOPE AND BENEFITS OF FAIRTRADE THIRD EDITION, 2011 A General Overview© Fairtrade 2011 General Overview
  2. 2. What is Fairtrade is an ethical certification system andFairtrade? movement with a people-first approach to trade. Vision A world in which all producers can enjoy secure, sustainable livelihoods, fulfill their potential and decide on their future. Mission To connect disadvantaged producers and consumers, promote fairer trading conditions and empower producers to combat poverty, strengthen their position and take more control over their lives.© Fairtrade 2011
  3. 3. Who needs World trade rules and power structures are unfair.Fairtrade? The odds are stacked high against small-scale farmers and workers in the developing world. They face the challenges of rising food and fuel costs, an increasingly unpredictable climate and volatile prices for their goods. Fairtrade offers farmers and workers in developing countries a better deal, and the opportunity to improve their lives and invest in their future.© Fairtrade 2011 3
  4. 4. Why is Fairtrade For producers, Fairtrade offers four importantunique? benefits: 1. Long-Term Partnerships 2. Transparency 3. Fairtrade Minimum Price 4. Fairtrade Premium© Fairtrade 2011 General Overview 5
  5. 5. Fairtrade Standards encourage long-term business relationships between producers and their business partners to build more stability fromLong-term year to year.Partnerships Producers also are involved in decisions in the Fairtrade system. They play a key role in the Board, Standards Committee, General Assembly and in consultation processes for Standards and Pricing. Fairtrade and its members also manage partnerships with important NGOs to bring additional services to producer organizations.© Fairtrade 2011 General Overview 6
  6. 6. Transparency Small farmer groups must have a democratic structure and transparent administration to be certified. Workers must have representatives on a committee that decides on the use of the Fairtrade Premium. Fairtrade International supports producer groups to develop capacity in these areas.© Fairtrade 2011
  7. 7. The Fairtrade The Fairtrade Minimum Price acts as a safety netMinimum Price for farmers at times when world markets fall below a sustainable level. When the market price is higher than the Fairtrade Minimum Price, producers receive the market price or the price agreed at contract signing.© Fairtrade 2011 General Overview 8
  8. 8. The Fairtrade The Fairtrade Premium is an additional sum ofPremium money paid on top of the product price. The Premium goes into a communal fund for farmers and workers to improve social, economic and environmental conditions.© Fairtrade 2011 General Overview 9
  9. 9. One of the three schools that Fairtrade certified cooperative Kuapa Kokoo in GhanaGeneral Overview 11 built with Fairtrade Premium funds.
  10. 10. With Fairtrade everyone wins: •Producers •Consumers •Environment© Fairtrade 2011
  11. 11. For producers, the mainbenefits of Fairtrade aremore stable prices, andlong-term tradingrelationships.These allow producers todevelop their businessesand plan ahead for thefuture.
  12. 12. With Fairtrade, consumers canbuy products – from an evergrowing range – in line withtheir values.By buying into Fairtrade,consumers support producerswho are working to improvetheir lives. 14
  13. 13. Fairtrade also rewards andencourages environmentallysustainable practices,including organic certificationand more.
  14. 14. All information contained in this presentation and more can be found in the full report, “Monitoring the Scope and Benefits of Fairtrade” (PDF) at© Fairtrade 2011 General Overview 17