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Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?
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Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid?

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Is Fairtrade a potential alternative solution to poverty alleviation for small-scale producers and their communities based on the principle of trade not aid? …

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).

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  • 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
  • 3. Bananas Cocoa Cotton Flowers Honey Cereals Rice Spices Tea Wine
  • 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
  • 5. Sugar Reform Begins
  • 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

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