FAIR TRADE

Why Does it Matter?

What We’re Going to Talk About Today…

Why do we need to change the way most things are traded? What’s wrong with the traditional way of trading?

What is Fairtrade?

How does Fair Trade Work?

Should You Support Fairtrade?

How Can You Support Fairtrade Producers Around the World?

‘Rich’

•21% of the world’s population

‘Poor’

•79% of the world’s population

80% of this wealth stays with 20% of the people

20% of this wealth is shared amongst 80% of the people

50% of this wealth stays with 20% of the people

50% of this wealth is shared amongst 80% of the people

•84% of the world’s wealth

•16% of the world’s wealth

10 biscuits – 10 people

2 people

8.5 biscuits

1.5 biscuits

1.2 biscuits for 2 people

0.3 biscuits for 6 people

2 biscuits for 1 person

6.5 biscuits for 1 person

8 people

Why Change the Way Most Countries Are Traded Now?

Over 1 billion (that’s 1,000,000,000) of the world’s people live on less than 66p a day.

Global farm incomes have declined dramatically in recent years. BUT consumer prices (what you pay for things in shops) and agribusiness’s1 profits have increased.

The richest 20% of the world consumes over 75% of the world’s resources.

1 Agribusiness takes crops or livestock and processes them for us to buy in shops

Why is Traditional Trading a Problem?

It gives too much power to the multinational corporations and rich countries

It lowers the opportunities for people who do not have a voice (vulnerable) producers and sometimes even damages the environment.

It only thinks about short-term profits, doesn’t protect producers rights and is not a long term way for the world to continue trading.

A Safe Fairtrade Workshop in Cambodia (photo: Jeff Goldman)

What is Fairtrade?

Fair Trade Works hard to:

Empower Communities

Allow farmers all over the world to sell their products through the world market and not just to local buyers. (which means they can make more money for what they produce).

Assists Community Development.

Increases people’s independence and gives them a way to work towards a better life for their families and communities.Women Artisans, Rwanda Photo: SERRV

What’s the Difference between Fair Trade & Free (traditional) Trade then?

Free Trade Fair Trade

Main Goal To increase a nation’s economic growth To empower marginalized people and improve the quality of their lives

Focuses On Trade rules (policies) between countries Focuses on trade among individuals and businesses.

Primarily Helps Multinational corporations, powerful business interests.

Vulnerable farmers, artisans and workers in less industrialized countries.

Critics Say Punishing to marginalized people & the environment, sacrifices long-term views.

Interferes with the free market, inefficient, too small scale for impact.

Major Actions Poorer Countries lower their export taxes, labor and environment standards to create markets with richer countries.

Businesses offer producers favorable financing, long-term relationships, minimum prices and higher labor and environmental standards.

Producers Payments are Determined By Market and government policies A decent wage that can support producers and their families and community improvement costs

Supply chain Includes many organizations between the producers and consumers.

Includes fewer parties (middlemen) and is more direct.

Key Supporters World Trade Organization, World Bank, International Monetary Fund

Fairtrade Labeling Organization, World Fair Trade Organization

The Fairtrade Mark UK & Ireland

Fairtrade Principles

Support Safe & Empowering Working conditions.

Ensure the Rights of Children

Ensure that Slave Labor is not used to make products.

Cultivate Environmental Respect & Good Practices.

Promotes Community Development

Gives People a Proper Income for Their Work

Primitiva Yuto Reuamani, Organic Coffee farmer in the San Fernando Co-op, PeruPhoto: Jessica Notargiacomo

Fair Trade In Action!

FTC WINERY in South Africa:

When the FTC Winery joined the Fairtrade Organization:

Marginalized workers gained dignity and better treatment.

The workers earned stable incomes, electricity and sanitation systems in their communities.

Supported their local primary school by building a computer center.

Fair Trade in Action

Sahaj Women’s Cooperative

When they Joined the Fair Trade Organization:

They trained tribal women’s groups in vocational skills.

Helped local artisans (craft makers) create products that consumers wanted through business advice.

Increased their income by 400%!

The women gained social status within their family and community.

Fair Trade in Action!

Kuapa Kokoo Farmers Union:

When they joined the Fair trade movement they:

Funded schools for local girls.

Invested in corn mills and palm oil extractors.

Trained villagers in soap making and batik fabric design.

Shared their knowledge with a Sierra Leone cocoa cooperative to help them gain Fair Trade Status.

Banana Split Game

We’re going to follow the journey of a banana that is not under the FAIRTRADE system to find out what happens to it before it reaches us. Let’s say our bananas are coming to us from the Caribbean Islands.

To play the game:

You will now be divided out in groups of 5 to represent the various parties involved in getting bananas to our tables.

Banana Split Game

You are going to break out into groups to represent:

1 Banana Worker

2 Plantation Owner

3 Shipper

4 Importer and ripener

5 Shop or supermarket

We can buy 1 banana for 30p.

You now need to decide how much of the 30p each group should get.

Banana Split Game

Stay in your group and think about how much your group should get out of the 30p. You have 5 minutes to come up with an amount. Don’t forget –5 different groups need some of this 30p!

Pick one person from your group to represent you for the rest of the game. This person will have to speak on your groups behalf – so they can’t be shy!

Banana Split Game

Has the amount come to more than 30p?

We’re now going to have to try to negotiate with each other to get our final price to 30p!

It’s time to work together between groups but also to try to protect the interests of the group that you belong to. WE HAVE TO GET THE FINAL PRICE TO 30p TO FINISH!

Banana Split

Banana Worker: 1p

Plantation Owner: 5p

Shipper 4p

Importer & Ripener

7p

Shop or Supermarket 13p

Some Fair Trade Facts!

In 2008 5 million (5,000,000) people benefitted directly from Fair Trade in over 60 Countries!

In 2008 Fair Trade Sales exceeded £ 2.6 billion!

Global Fair Trade Sales grew by 22% in 2008!

Ghanaian School Children. Photo Phil Grout

Challenges Facing Fair Trade:

Should we try to reform (adjust) traditional free trade or replace it completely?

How should fair prices and standards be determined?

How do we deal with competing labels and make sure that Fair Trade principles are enforced with producers all over the world?

Cocoa in Ghana

Ghana depends on cocoa. After gold, it’s the country’s economic mainstay, and Ghanaian cocoa is

considered to be some of the world’s finest. Most Ghanaian cocoa is produced on small farms of 3-4

hectares.

Cocoa in Ghana

There are about two million cocoa farmers in Ghana. There are a lot of links in the chain between the cocoa tree and

the chocolate bar and cocoa farmers, right at the beginning of the chain, often benefit the least from the global cocoa industry.

In Ghana, each farmer sells their cocoa to a private buying company.

Then the private buying company then sells it on to Cocobod, the Ghanaian government cocoa marketing board.

Next it is sold to international buyers, such as chocolate manufacturers and commodity brokers, at a price set on international commodity exchanges.

We’re going to take a look at the experiences of the cocoa farmers, the challenges they face, and how Kuapa kokoo and Fairtrade makes a difference.

What are the Problems Ghanaian Farmers Face?

The average cocoa farmer in Ghana makes £160/year.

Most grow a lot of their own food as well, but they need money to buy farm materials, school books, school fees, medicine, doctors fees, transport and clothes.

What are the Problems Ghanaian Farmers Face?

Other problems include:

The price of cocoa on the world market goes up and down regularly.

This means cocoa farmers have no long-term security and sometimes can’t even cover their farming costs.

Farmers are often paid by local cocoa buyers using cheques or vouchers, which the farmers then can’t cash or bounce.

Farmers are often underpaid by local cocoa buyers using “fixed” scales, set to show a lower reading than the actual weight of their beans.

Kuapa Kokoo Fair Trade

This Fair Trade Approved Farm is an association (or cooperative) of more than 45,000 cocoa farmers in Ghana.

Kuapa Kokoo means “Good cocoa famer” in Twi.

What is a Co-operative?

A business that is owned and run democratically by the farmers themselves.

Co-ops help farmers to work together, giving them strength to compete in the market.

They also work to improve community services, such as healthcare, education and access to clean water. It gives the farmers the pride and dignity to create a better life.

What Products are Fairtrade?

To Name Just A Few:

Honey from Zambia

Coffee from Peru

Teas from Uganda and India

Bananas from the Caribbean Islands

Cotton from India

Olive Oil from Palestine

So, Next Time You’re Out Shopping…

Think about where the products you are buying are coming from.

If there’s a choice in your local shop – choose fairly traded products. IF there isn’t a choice, why not ask the manager to stock Fairly traded products?

Some labels to look for are:

Some Labels to Look Out For

Written by Lisa Hallemail: hallnwc@aol.com

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