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

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Presentation given by Anja Osterhaus (Fair Trade Advocacy) at the 5th Brussels Development Briefing - Brussels, 16 April 2008

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

  1. 1. 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
  2. 2. Fair Trade: a tool for creating greater market access for ACP small producers <ul><li>Aim of Fair Trade </li></ul><ul><li>Fair Trade products and commercialisation </li></ul><ul><li>Fair Trade producers: some facts and figures </li></ul><ul><li>Benefits of Fair Trade </li></ul><ul><li>Fair Trade: a growing market </li></ul><ul><li>Conclusions </li></ul>FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS
  3. 3. <ul><li>Aim of Fair Trade: </li></ul><ul><li>Market access under fair terms, particularly for small and marginalized producers from DCs. </li></ul><ul><li>Means to achieve this aim: </li></ul><ul><li>Better trading conditions for more than 1.5 million small producers and poor workers, </li></ul><ul><li>Work towards greater trade justice (advocacy, campaigning). </li></ul>FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS
  4. 4. <ul><li>Fair Trade products: </li></ul>Handicrafts and processed goods: Jewellery, textiles, sportsballs, baskets, wooden products, statutes, ceramics… Food: Coffee, bananas, sugar, tea, cotton, spices, fresh fruit, juice …
  5. 5. Commercialisation of FT products: <ul><li>1. Direct trading relationship between Fair Trade producer/exporter and Fair Trade importer/retailer, </li></ul><ul><li>2. Labelling route: conventional companies acquire Fairtrade label for products, bought and traded under fair conditions. </li></ul><ul><li>Fair Trade standards must be met to ensure compliance with Fair Trade principles. </li></ul>FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS
  6. 6. <ul><li>mainly small producer organisations, but also workers in factories, tea estates, plantations… </li></ul>Fair Trade producers: <ul><li>60 countries in Africa, Latin America, Asia </li></ul>
  7. 8. <ul><li>Benefits of Fair Trade: </li></ul><ul><li>Fair price that covers costs of sustainable production and living (often stable minimum price plus premium), </li></ul><ul><li>Market access, help to overcome supply side constraints, </li></ul><ul><li>Capacity building, empowerment, </li></ul><ul><li>Sustainable production methods, </li></ul><ul><li>Payment in advance… </li></ul>FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS
  8. 9. Stable minimum price: the example of coffee
  9. 10. Capacity building and empowerment
  10. 11. Work towards greater trade justice
  11. 12. <ul><li>Fair Trade: a growing market </li></ul><ul><li>Worldwide annual growth rates: around 40% </li></ul><ul><li>Around 2 billion Euros spent on FT in 2007 </li></ul><ul><li>1 of 4 bananas sold in UK is Fair Trade </li></ul><ul><li>80% of Belgian consumers recognize Fair Trade </li></ul><ul><li>Tate & Lyle switch all own label sugar to FT </li></ul><ul><li>Cocoa & cotton sales doubled between 2005 & 2006 </li></ul><ul><li>90% of bananas in Eastern Caribbean: Fair Trade </li></ul><ul><li>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. </li></ul>FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS
  12. 13. <ul><li>Conclusions </li></ul><ul><li>Fair Trade is a tool for market access under fair conditions for small producers, </li></ul><ul><li>To participate in Fair Trade, standards must be met by producers and traders/importers, </li></ul><ul><li>Fair Trade market has a huge potential; depends on the demand from consumers and company/public purchasers, </li></ul><ul><li>Public policy support to Fair Trade is needed to support growth, in EU and ACP countries. </li></ul><ul><li>www.fairtrade-advocacy.org </li></ul>FAIRTRADE LABELLING ORGANIZATION INTERNATIONAL NETWORK OF EUROPEAN WORLD SHOPS

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