Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
•Download as PPTX, PDF•
1 like•812 views
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid? This is a look into Fairtrade as a model and how it is currently working in the Swaziland sugar industry. This is currently a pilot test in Swaziland and the initiative was undertaken by the Swaziland Sugar Association (SSA).
Recommended
Recommended
More Related Content
What's hot
What's hot (9)
Viewers also liked
Similar to Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Similar to Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid? (20)
Recently uploaded
Recently uploaded (20)
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
- 1. Marisa da Silva marisa@infanta.co.za 7 November 2013
- 2. Trade NOT aid According to Johannesen and Wilhite (2010): ◦ Fairtrade is a market- based approach to social and environmental development for producers through the use of standards and a price floor Producers Consumers
- 4. Holistic View ◦ Primary: Fairtrade conferences and conducting semi- structured interviews ◦ Secondary: Impact Studies, Case Studies and existing journals Used Yin for case study guidelines Case studies are designed to bring out the details ◦ Multiple data ◦ Practical implications Single Case study
- 6. Sugar = substantial contributor to the GDP of Swaziland Commencement in 2008 but only certified in 2012 Why Fairtrade is needed in the sugar sector? Price volatility Climate change Competition
- 7. The Two Main Economic Benefits of Fairtrade 1.Guarenteed Fairtrade Minimum Price Aims to ensure that producers can cover their average costs of sustainable production Acts as a safety net
- 8. The Two Main Economic Benefits of Fairtrade 1.Guarenteed Fairtrade Minimum Price
- 9. The Two Main Economic Benefits of Fairtrade 1.Guarenteed Fairtrade Minimum Price Agreement Reforms Volatile Industries Sell Premium Products NO Minimum Price
- 10. Premium was used primarily to cover the costs of certification 3 conditions Social Socio- Economic Environmental 2. Premium Benefit
- 11. According to Fairtrade Labelling Organisation (2013): A price that covers the cost of production A social premium Contracts that allow long-term production planning Long-term trade relations Environmental standards promoting best agricultural practice A democratic decision-making Forced labour and child labour are prohibited. 3. Standards and Certifications Producer organisations are paid a Fairtrade Premium of $60 per tonne
- 12. Fundamental Element Producers have an equal say Democratic decision-making 4. Empowerment
- 13. More ethical decision-making Greater transparency between producers and consumers Create awareness 1. Marketing and Strategy
- 14. Selling into conventional markets Consumer guarantee ◦ Quality Brand mark is crucial 2. Mainstreaming
- 15. Supply Demand 55000 tonnes 10000 tonnes 2. Mainstreaming initiative with a risk of ◦ Co-option ◦ Dilution ◦ “fair-washing” 3. Higher input costs to adhere to certification requirements 4. Low level of education 1.
- 16. 1.231 million people ◦ 40% of Swazis live below the poverty line First year of certification, Swazilands sales of 10000 tonnes generated an annual premium of US $600 000. With the balance of 45000 tonnes of Fairtrade sugar being sold with a premium of US $60 into Fairtrade markets, ◦ this would have the result of US $2.7 million/year being available to the Fairtrade producers.
- 17. 1.231 million people ◦ 40% of Swazis live below the poverty line First year of certification, Swazilands sales of 10000 tonnes generated an annual premium of US $600 000. With the balance of 45000 tonnes of Fairtrade sugar being sold with a premium of US $60 into Fairtrade markets, ◦ this would have the result of US $2.7 million/year being available to the Fairtrade producers. Empowerment Better Working Conditions Premiums Relationships
- 18. 1.231 million people ◦ 40% of Swazis live below the poverty line First year of certification, Swazilands sales of 10000 tonnes generated an annual premium of US $600 000. With the balance of 45000 tonnes of Fairtrade sugar being sold with a premium of US $60 into Fairtrade markets, ◦ this would have the result of US $2.7 million/year being available to the Fairtrade producers. Empowerment Better Working Conditions Premiums Relationships What started with humble beginnings in assisting a few small farmers may well be one of the major answers in upliftment of communities and the alleviation of poverty