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Why FAIRTRADE?
Despite rapid globalization and the call by developed countries for free trade, producers in developing countries are not getting a fair deal.
Agricultural production is always risky. Farmers rely on the weather and natural resources.
Market fluctuations are risky too. The price of coffee, a key commodity in developing countries, dropped 50% in 2003 to around US$0.5 per pound. Consequently a coffee farmer in Ethiopia could only earn less than US$1 per day.
An unequal power exists between farmers and processors and marketers too. Small farmers rely on middlemen because they have no access to price and market information.
The biggest coffee buyers are the multinational coffee roasters. They process, brand and market the coffee. The five largest roasters buy almost 50% of the world’s coffee beans, which gives them huge bargaining power. In 2001 Vietnam’s Dak Lak Province, farmers sell their coffee beans for as little as 60% of the cost in 2002.
Farmers also suffer from unfair trade rules such as the free trade agreement. Developed countries place extra high tariffs on agriculture products like sugar. Farmers from developing countries have no choice but to grow lower tariff products, yet may lack the skill and resources needed to change crops. They literally farm themselves into poverty.
Today 2.5 billion people live in poverty and the wealth gap between the rich and poor is widening.
Fair trade aims to put people before profits. It is a global movement against poverty and injustice.
Fairtrade offers an alternative – a fair price for farmers and consumers. Under Fairtrade, coffee farmers can sell their beans at US$1.25 per pound, a price that lets them improve their lives.
Definition of FAIRTRADE?
Fairtrade is a trading partnership, based on dialogue, transparency and respect, which seeks greater equity in international trade.
It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers.
Fairtrade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for change in the rules and practice of conventional international trade.
Defined by FINE, (Fairtrade Labelling Organizations International, International Fairtrade Association, Network of European Worldshops & European Fairtrade Association)
How does FAIRTRADE work?
Key Fairtrade principles:
We buy products at a price that covers production costs as well as the basic needs of the famers and workers and their families.
We bypass exploitative intermediaries and create direct trade links with farmers and their organizations.
We pay a social premium to supports projects for the community's development, such as a clean water supply, a decent clinic or a primary school.
We use sustainable materials and methods in making products, such as organic farming and other pro-environment measures.
We make sure ILO labor standards are followed during production.
We allow consumers to be part of a process that allows farmers to have a fair share of the trade.
Those standards are set by Fairtrade Labelling Organizations International (FLO), the leading Fairtrade labelling standard setting and certification organization
Buying products that carry the Fairtrade Certification Mark helps ensure a better deal for producers in the developing world.
There are many FLO-certified products, including coffee, tea, herbs, cocoa, chocolate, bananas, maize, sugar, rice, cotton and spices.
What is the FAIRTRADE mark?
The Fairtrade Mark is an independent label awarded by the Fairtrade Labelling Organizations International (FLO).
It guarantees that the product fulfils FLO Fairtrade criteria. The Mark is only displayed on products that conform to internationally-agreed Fairtrade criteria.
Most FLO certifiable products are food products. Cotton has recently been added to the list.
The International Fair Trade Association
IFAT is the global network of Fair Trade Organizations, members including producers, importers, exporters and wholesalers. Their mission is to improve the livelihoods and well being of disadvantaged producers by linking and promoting Fair Trade Organizations, and speaking out for greater justice in world trade.
Any organization, whom is awarded the FTO mark, means they can achieve the standards and monitoring system requirements. Products produced from this organization are all in line with the principle of Fair Trade.
Who benefits from Fairtrade?
Farmers/producers/workers:
A fair deal that ensure producers’ economic stability and a reasonable standard of living
Improved working conditions, as technical training and skills are provided.
Stable and decent incomes let children go to school and have medical treatment.
If workers are employed, their terms and conditions should follow ILO standards.
Community:
A social premium included in the deal helps to build better infrastructure like schools, clinics and roads for the community, which leads to better health care and education.
By working together, the community can improve their processing equipment, communications systems and transportation which enhances their ability to trade.
Environment:
Environmental protection is an important Fairtrade issue. Only certain chemical fertilisers and pesticides may be used in Fairtrade production to reduce impact on the environment.
A higher price is paid for organic products. This further encourages eco-friendly production.
All Fairtrade certified products are GMO free.
FAIRTRADE in Hong Kong?
Fairtrade is a relatively new concept in Hong Kong.
In 2002, Oxfam launched the first “Make Trade Fair” campaign in Hong Kong, which highlighted economic injustices and introduced the Fairtrade concept. Oxfam Hong Kong imported Fairtrade coffee and promoted them in universities.
In December 2005, there was a breakthrough. Massive media coverage of the World Trade Organization (WTO) Ministerial Conference raised awareness of unfair trade issues. The public now recognizes the concept of fair trade.
The number of Fairtrade products and operators has increased too. Before the WTO conference only about 10 places served or sold Fairtrade products, FAIRTASTE among them. After the WTO, more practitioners appeared and more Fairtrade products became available in more places, including supermarket chains, coffee shops and other retail outlets.
Fairtrade market survey
In 2006, Oxfam Hong Kong commissioned a survey on market demand for Fairtrade products in Hong Kong. A. C. Nielsen conducted the survey and interviewed about 300 people online.
The result was encouraging: 70% of respondents knew about Fairtrade, and about 37% of them had bought a Fairtrade product in the past.
All respondents expressed interest in buying Fairtrade products. Coffee and coffee beans are by far the most popular, comprising 78% of the Fairtrade market.
In recent months, more newspapers and magazines are reporting Fairtrade stories and introducing Fairtrade products.
In September 2007, a local television station ran a two-episode documentary about fair trade. They visited producer groups in China and looked at successful fair trade experiences in Europe. These clearly indicate that the fair trade movement is growing in Hong Kong.
FAIRTRADE across the world?
Fair trade is becoming mainstream, with up to 1500 products available. You can easily find Fairtrade products in supermarkets. In the UK, there are more than 100 Fairtrade shops.
Some big brand names in UK have announced to convert supplying Fairtrade products, such as Sainsbury, a supermarket has converted its banana range to 100% Fairtrade in July 2007. Marks & Spencer has converted its entire tea and coffee range to Fairtrade in April 2006.
Global retailer and franchiser Dunkin Donuts adopted a policy of 100% Fairtrade espresso coffee in North America and Europe. Insomnia Coffee Company in Ireland announced that all coffee served from outlets across the country would be 100% Fairtrade. In Sweden, Scandic and Hilton, a major hotel, announced a switch of all its coffee to Fairtrade in October.
According to the Fairtrade Labeling Organizations International (FLO), global Fairtrade sales have increased by 40% in the last three years. The total sales of Fairtrade labelled products reached 1.6 billion euros. And 1.4 million farmers and workers benefited worldwide.
During 2006, FLO estimates that Fairtrade coffee sales provided an estimated 41 million euros more to Fairtrade certified coffee cooperatives than selling their products under conventional terms.
(Resources from FLO www.fairtrade.net, 25 July 2007)
How can I contribute?
We can all play a part in alleviating poverty and building a world that is equitable and sustainable.
You can:
Shop for Fairtrade products
Educate yourself by reading more about Fairtrade
Introduce Fairtrade to your friends, co-workers and family
Participate in a Fairtrade event or be a volunteer
Subscribe to FAIRTASTE or become a friend of us
Help to sell Fairtrade products
In your community:
Encourage your campus, workplace or place of worship to use FAIRTASTE or Fairtrade products
Organize some events like talk and exhibition to introduce Fairtrade
Encourage shop managers to stock Fairtrade products
Corporate:
Use FAIRTASTE or other Fairtrade products in your pantry and on other parties/ occasions
Send Fairtrade hampers to your clients during special festivals
Consider giving Fairtrade gifts
Retail outlets and restaurants & Cafes:
Stock Fairtrade products and recommend to your customers
Serve Fairtrade products for your clients
Contact FAIRTASTE today to join the Taste Revolution. |
