Fair trade

FAIRTARDE

Contemporary Selected Issues

Prepared by

Sameeh Swaitti & Johnny Anstas

Supervised by

Dr.Sameer Abuznaid

2014

Learning Objectives

Upon completing the presentation you are supposed to have general info about:

• What does Fair Trade mean ?• What are Fair Trade principles?• What are the main benefits of Fair Trade?• What are its effects on producers and

consumers?• How does Fair Trade certification work? • What about Fair Trade in Palestine?

Fair Trade Definition

• Is a trading partnership, based on dialogue, transparency and respect, that seeks grater equity in international trade. It contributes to sustainable development by offering better trading conditions to marginalized producers and workers especially in the South.

FAIRTARDE

• Fair Trade believes that its movement can be fundamental driver of poverty reduction and greater sustainable development if it is well managed for this purpose.

• Fair Trade believes that marginalized and disadvantaged people can develop the capacity to take more control over their lives if they are better organized, sourced and supported.

Fair Trade

• Fair Trade believes that people and institutions in the developed world are supportive for trading in this way if they are informed of the needs of producers for improving their situation.

• Generally, it enables citizens to make a difference to producers through their actions and to consumers through their choices.

FAIRTARDE PRINCIPLES(5)

• Market access for marginalized producers who are excluded from mainstream and added-value markets. (help shorten trade chain to receive more from final selling price of their goods).

• Sustainable and equitable long-term trading relationships (trading terms offered by Fair Trade enable producers and buyers to maintain a sustainable livelihood; economic, social, and environment as a whole now and in the future).

• Capacity building and empowerment which assist producers to understand more about market conditions and trends to develop knowledge and skills to control their lives.

FAIRTARDE PRINCIPLES

• Consumer awareness raising & advocacy تأييد by connecting producers and buyers for the benefit of social justice and opportunities for change and reform the international trading rules.

• Fair Trade as a “social contract” where buyers agree to do more than is expected by the conventional market by:

1. Paying fair price

2. Providing pre-finance

3. Offering support for capacity building

In return, producers use these benefits to improve their social and economic conditions.

(so, Fair Trade is not charity but a partnership for change and development through trade)

Fair price for good work (producers and workers)

Environmentally sound & healthy organic production

(Go Green) Socially just work (no child

labour) Stable, transparent and long-

term partnershipDignity & respect

Fair Trade Benefits

Photo: Credit: Fairtrade Foundation

Fair market access for poverty alleviation & sustainable development.

Guaranteed minimum wages & prompt payment Financial assistance, when needed (pre-harvest or

pre-production financing) Encouraging better environmental practices

Fair Trade Benefits

Photo: Fairtrade Austria

Effects on producers and community

• Farmers become empowered because of the democratic cooperatives.

• Ensure price covers cost of production and cost of living

• Gain a long term commitment from buyer• Environmental protection that are

mandated.• Education and capital to help diversify

crops.

Effects on the buyer

• Feel like part of a larger movement • Make a connection to farmers• Help lift farmers in developing countries

out of poverty• Support organic and sustainable

production

Contribution to sustainable development

Effective alternative to development aid Helps to reduce poverty Helps to improve working conditions in the in

the majority of the world.

Why buy Fair Trade products?

Good image Fair Trade has very high

recognition & approval among the general public

Attractive, stable and transparent market

Rapidly expanding market From niche to the mass

market highly transparent supply

chain

Why buy Fair Trade products?

Photo: Fairtrade Austria

Vending machines (coffee, tea, snacks…)

Canteens (offices, schools, hospitals…)

Catering (events, …)

Gifts (anniversaries, Christmas…)

Where can Fair Trade products be used?


FLO Fairtrade Labelling Organizations International is the worldwide Fairtrade standard setting and certificating organisation for products. www.fairtrade.net

Who checks Fair Trade products?

Conditions for Certification

To label Fair Trade products by FLO the producers should do:

• Create democratic cooperatives• Establish standards for hired labor• Avoid forced or child labors• Adhere to health and safety standards• Implement programs to improve environmental

sustainability and organic products.

Fair Trade Certification

Fair Trade Certification is a third-party certification process that sets standards for the way products is produced and how much a farmer/farming cooperative earns per pound of sold. The criteria are:

• · Fair prices for farmers and decent working and living conditions for workers• · Direct trade with farmers, bypassing middlemen• · Free association of workers and co-ops, with structures for democratic decision-making• · Access to capital• · Sustainable agricultural practices including restricted use of agrochemicals

From TransfairUSA.org

Certification ensures the farmer will always have a steady price to depend on, and leads to• economic development in cooperatives, with some cooperatives financing health care,

schools, and infrastructure, as well as diversification into other crops and into subsistence agriculture.

• How can I tell if it’s Fair Trade Certified?

The Fair Trade label is a way for consumers to know these criteria were met before the product ever makes it to the shelf. Look for the label on your products – if it’s not there, it’s not Fair Trade certified.

Fair Trade Facts

• Fair Trade products are goods and services that are produced, traded and sold in accordance with Fair Trade principles and wherever possible, verified by credible, independent assurance systems such as by FLO.

• All Fair Trade products originate from producers and workers should be committed to Fair Trade principles.

https://www.msu.edu/~realfood/fairtrade101.pdf

Distribution Channels

All Fair Trade products should be traded and marketed through two distinct but complementary channels:

1. The integrated supply chain route whereby products are imported and distributed by organizations that have Fair Trade at the core of their mission and activities to support disadvantaged producers to reduce poverty.

2. The product certification route whereby products complying with international standards are certified indicating that they have been produced, traded, processed and packaged in accordance with the FLO standards.

Good Practice: Cities making a change!

Barcelona - Vending machines

At the Autonomous University of Barcelona, approximately 6,500 kilos of Fair Trade coffee are sold annually through 50 vending machines which are run by three dealer companies.

Achievement: Around 15 to 20 producer families in Chiapas/Mexico and Tanzania can make their living from the amount of coffee sold.

Rome - School canteens

In its technical specifications, Rome asked suppliers to supply one Fair Trade banana

every week to each pupil. Achievement: In Italian schools canteens public authorities serve at least 3 million kg of Fair Trade bananas per year.



Vienna - Catering at EU Presidency

For all events held relating to Austria’s EU Presidency in 2006, the official caterer had to provide the organising ministry with the choice of offering Fair Trade Coffee, chocolate (cocoa), tea, and orange juice. Achievement: A high number of ministries chose the Fair Trade option

The Buy Fair project

Partner: European Fair Trade Association

Funded by the Dutch Ministry of Housing, Spatial Planning and the Environment.

Objective: To develop practical guidelines for public authorities in Europe wishing to purchase Fair Trade products

Website: www.iclei.europe.org/buyfair


Synopsis

• Fair Trade has led the way in encouraging and enabling consumers to take regard of the social, economic and environmental consequences of their purchasing.

• There is a growing interest and consciousness from global consumers to buy certified FLO products to support disadvantaged producers and workers especially in south.

• There is a great trust placed in FLO products by public because the good reputation gained in addition to the high quality and organic characteristics maintained across years ago.

•

Synopsis (continued)

• Growing demand on FLO products globally • Sustainable development for disadvantaged

producers and workers to reduce poverty.• Environmental sound and organic products are

highlighted universally.• Encouraging establish cooperatives among

small farmers and artisans in a democratic ways to lever their livelihoods.

First Section

Than you for listening

The Palestine Fair Trade Association

Palestine Fair Trade Association (PFTA) is a national union of fair trade producing cooperatives, processors, and exporters. The association was founded in 2004 in Jenin and maintains offices there.

PFTA’s mission is to provide social and economic empowerment of small, marginalized, and excluded Palestinian communities through the concept of fair trade.

Strategic objectives of fair trade in Palestine are:

1) to move marginal producers and workers from vulnerability to economic security,

2) to engage producers and workers to participate in their organization, and

3) to assist producers and workers to build commercial capacity.

http://www.palestinefairtrade.org/

The production of all 43 PFTA cooperatives, as well as 6 women's cooperatives is certified Fair Trade by the Institute of Market Ecology (IMO) of Switzerland.

Certification requires strict adherence to objective, measurable guidelines at all stages of production.

The philosophy of PFTA is that certification is important to build trust and respect for farmers’ products to gain market access outside of Palestine.

The PFTA has general Fair Trade guidelines that must be observed by all participants in the production, processing, and trade chain. However, PFTA's cooperatives primary activity is the production of Fair Trade olive oil.

PFTA has developed product specific guidelines for Fair Trade Olive Oil that guides the fair trade production of olive oil in Palestine.

The Palestine Fair Trade Association

http://www.nepto.ps/etemplate.php?id=72

PFTA Cooperatives

Farmers' village cooperatives

Jenin districtAl-Taybeh, Al'Araqa, Al Rami, Siris, Sir, Maythaloun, Faqo'a, Deir Abu D'if, Jalqamous, Raba, Al Judayda, Sanour, 'Anza, Kufor Ra'i, Burqin, Kufor Dan, Al Sila, Rummaneh, ZbubaNablus districtTallouza, Ijinsinya, Asira, Beit Mrein, Nisf Jbail, Burqa, Sabistya, Bzarya, YassidRamallah district'Arura, 'Ajjoul, Al Maza'I, 'Aboud, Deir Al SoudanSalfit districtHares, Kufor Hares, RafatQalqilya districtDeir Ballout, Bedya


http://www.palestinefairtrade.org/pdf/PFTACooperativesChart.pdf

Women's village cooperatives

Couscous and za'atarJenin district: Al Jalama, Faqo'a,Qalqilya district: BedyaSun-dried tomatoesJenin district: BurqinOlive oil soapJenin district: BurqinQalqilya district: Deir BalloutWild collectionJenin district: Sanour, JalqamousNablus district: Jamma'in

PFTA Cooperatives


http://www.palestinefairtrade.org/pdf/PFTAWomensCooperativesChart.pdf

PFTA Fair Trade Programs & Certifications

“Fair trade” is more than a marketing slogan at the PFTA.

The certification entitles its holder:To comply with the rules of the Fair Trade and to access more markets among the members in the Fair Trade markets.

IMO – Fair Trade Social Responsibility & Organic Certification.

The production of all 43 PFTA cooperatives, as well as 6 women's cooperatives is certified Fair Trade by Institute of Marketecology (IMO) of Switzerland.

A FLO certification opens a wide venue of connections and marketing exchanges between the Palestinian olive oil cooperatives and the global Fair Trade markets.

18 cooperatives are additionally certified Fair Trade by the Fairtrade Labelling Organization (FLO) of Germany.


The PFTA philosophy is that certification is important to build trust and respect for our products to gain market access outside of Palestine.

Fair Trade Department (FTD) is one of the departments constituting the Palestinian Agricultural Relief Committees (PARC).

It aims at organizing the efforts of agricultural cooperatives for farmers and women to improve their social and economic situation throughout developing their production capacity and improving the quality of their products.

The overall objective is that farmers and women obtain fair prices for their products; the prices which ensure a decent life for them.

Certifications Documents are available at Canaan Fair Trade

http://www.canaanfairtrade.com/

PFTA

www.bethlehem.edu/icp/ftdc

WFTO member…

FTDC has established alliances and deep rooted partnershipswith highly esteemed national and international NGOs of diversified specializations to design and implement common comprehensive developmental programs.

Guided by the Fair Trade Principles, The FTDC aims at introducing new practices to improve the livelihoods of small-scale producers and farmers, and to enhance organized collective work based on a gender equitable capacity building in managerial, organizational, and marketing issues.

Joining “WFTO” Makes FTDC more valuable

As a member of the WFTO, the FTDC leads and supports different local organizations and cooperatives to obtain a recognized certification of their products. Therefore, the FTDC facilitates the process of the certification by the Fair Trade Labeling Organization (FLO).

Additional Material will be sent through E-mail

http://bethlehem.edu/icp/ftdc

How “Fair” Is Trade in Palestine?

- Whose livelihood improves?

- Who are the real beneficiaries of any economic boom?

- To what extent do the original producers, especially the smaller ones, benefit from any increase in profits?

- Are profits being fairly distributed among the various players of the supply chain?

poor do not get poorer as the rich get richer

“This is Fair Trade All About”

http://archive.thisweekinpalestine.com

PFTA

Thank you for listening

Business

Fair trade