Fair Trade by 5iC78p6

VIEWS: 17 PAGES: 31

									Fair Trade
 Better deal for third-world producers.
 Better quality for consumers.
Introduction




  90% of world‘s cocoa in small farms
  Most of the farmers have never tasted a single
   chocolate bar in their lives!
Failure of international
trade – poverty cycle
  Low market prices for cocoa beans...
  Leads to a lack of resources for
   farmers...
  Leads to cocoa farmers building debt...
  Leads to continued poor quality of
   cocoa...
  Leads to country's inability to remain
   competitive...
Large companies don‘t
help much
  Farmers are forced to sell their goods for
   very low prices
  They have no choice
  Leads to bribery and organized crime
  Grey economics, drug dealing, mafia …
  „Invisible hand“ doesn‘t work in states
   without developed democracy
International relieves

  Relieves help only temporarily
  „Farmers in Kenya pray for huge harvest
   in Canada.“
  Aids encourage farmers not to work but
   wait for subsidies
  To give money or food won‘t establish
   sustainable development
How to break the cycle?

  Fair Trade is general term for an idea of
   ethical and rational business
  Fair Trade cleans up relationships
   between producer and consumer
  Fair Trade is no charity – it just provides
   producers with appropriate wages
  Fair Trade means top quality food and
   goods from known sources
Fair Trade

  Everyone can contribute to improve living
   conditions of actual producers
  Environment impact
    Fair trade is ecological
    Fair trade eatables are BIO products
  No slaves, no children forced to work
Fair trade labeling history

  In 1964 Oxfam in Great Britain created the first
   Fair Trade Organization. Parallel initiatives
   were taking place in the Netherlands
  1967 the importing organization, Fair Trade
   Organisatie, was established
  In 1988 from initiative of Mexican coffee
   farmers, first Fair Trade labeling company
   started
 How does Fair Trade work


Producer                   Consumer


                        Distributor
     Co-op
             Labeling
             company
Global view
Fair trade goods
  A range of fair trade products, including crafts,
   fashions, foods (such as chocolate, honey, bananas
   and other fruit), beverages (tea, coffee, fruit juice),
   paper and cards are available. Products are sold
   through an extensive network of small retailers and
   many big supermarkets have a token few products
   available for purchase. Mail-order companies exist all
   over the world, from small specialist grocers to new on-
   line suppliers. You can also check out the legendary
   Starbucks for a token sample of fair trade coffee.
                                                    BBC News
Economic view

 „Every business transaction is a
    challenge to see that both
     parties come out fairly.“
          Adam Smith, The Theory of Moral Sentiments (1759)
Free trade vs. Fair trade ?

  Economic evolution of Fair trade
  From missionary to market with
   agriculture products
Free trade and market
failure
  Is international trade with agriculture
   product really free?
  What about price of goods on this
   market?
  Comparation of situation in agriculture
   between developing coutries and those
   developed ( especially EU, USA or
   Japan)
Fair Trade medicine

  Economic principles of Fair Trade.
  Cost of Fair Traded goods and its prices.
  Influence of existence Fair Trade
   organizations on world market.
  Fair Trade in compare with
   environmental approach.(?)
Questions and problems
with Fair Trade

  Is Fair Trade really fair?
  Problems with certifications
Conclusion

  Is it possible that Fair Trade could
   improve the world „free“ market?
Some interesting facts

  In Kenya capital town Nairobi supermarkets is
   available an Irish butter for lower price, then
   their own.
  The subsidies for one cow in EU are equal to
   two year wages of average agrarian in
   countries of Third world.
  From 1,75 Pounds paid for cappuccino in
   London café, the farmer in Columbia get about
   0,05 Pound.
Real numbers

  Fair traded goods participate on world
   export with 0,01- 0,03% (resources are
   different (?))
  Fair Trade has direct influence on lives of
   more than 5 mil. people in developing
   countries.
Fair Trade organisations

International Fair Trade organizations in Europe (summer 2005)


                  FLO                 IFAT              NEWS!             EFTA
Established                   1997               1989              1994               1987

                                      Producer org.,    National
                  National
Type of members                          Importing          workshop      Importing org.
                      labeling org.
                                         org., others       association

Members in        20 in 20            280 in 62         15 in 13
                                                                          11 in 9 countries
   countries          countries           countries         countries
Members in        15 in 15            63 in 12
                                                        all               all
   Europe             countries           countries

                                      Culemborg, The                      Maastricht, The
Head office       Bonn, Germany                         Mainz, Germany
                                          Netherladns                        Netherlands
Top5 Fair Trade importers


      Claro fair trade           8,3
                                       11,5

     Oxfam Fairtrade         5
                                              15,5
           Traidcraft                   12,4
                                                     20,6

Fair trade organisatie                        15,9
                                                     20,7

          Café direct                   12
                                                            25,2
   Ctm altromercato               9,3
                                                                          34,3

                gepa                                               29,8
                                                                                 39,7

                         Turnover financial year 2004          Turnover five years ago
Shares of market
              Last year
                            five yeas
Cofee           available               Sweden        under 1   0,8
                                ago

UK                     20         1,5   Norway            0,9   0,3

Switzerland             6           3
                                        Finland           0,4   0,3
Austria               2,3         0,7
                                        Luxembourg        n/a   3,3
Denmark                 2         1,8
                                        Netherlands       n/a   2,7
Ireland                 2         0,5

Belgium               1,7           1   Italy             n/a   0,1

Germany                 1           1   France            n/a   0,1
Shares of market
              Last year
                                         Denmark       0,9        2
                 avail five years
Bananas          able      ago
                                         Norway        0,6       n/a
Switzerland         47              15
                                         Ireland       0,5       n/a
United
                                         The
   Kingdom         5,5      under 1
                                         Netherlands   n/a       4,2

Finlad               5          n/a      Luxembourg    n/a        4

Belgium              4          0,6      Italy         n/a       1,2

Austria            2,7          n/a      Germany       n/a   under 1

Sweden         under 1          1,8      France        n/a       n/a
What is Fair Trade about?
    According to the 2005 FTF Trends Report, alternative
     traders who are members of the Fair Trade Federation
     commit to advancing the following:
1.   Opportunities for economically disadvantaged
     producers.
2.   Gender equity.
3.   Transparency and accountability.
4.   Capacity building.
5.   Payment of a fair price.
6.   Healthy working conditions.
7.   Environmental sustainability.
8.   Promotion of Fair Trade principles.
                                         www.fairtraderesources.org
Controversy

  Some large companies might try to get
   „ethical credit“ being part of FT labels
  Nestlé‘s „Partner Blend“ coffee has
   obtained FT label despite the fact that
   other product from Nestlé exploit farmers
So why should I care?

 1. You are paying the exact market price
    for what you get – including proper
    reward for the producer
 2. It is ecologically correct
 3. You know what you buy
 4. Fair Trade is yummie 
What difference does it
make if I buy Fair Trade?
  In small amount – small difference
  Small amount every day – big difference
  „The best thing about Fair Trade is that it
   is very natural. You eat every day, you
   drink tee or coffee and you‘re helping!“
  Small amount every day in the whole
   company – enormous impact
Future of Fair Trade
  Fair trade is not a charity
  Fair trade merely gives people what belongs to them
  „By not buying Fair Trade coffee you participate on
   crime… you‘re murdering.“
  In EU, Fair Trade becomes more and more popular
  Coffee shops, markets and restaurants start to offer
   Fair Trade goods
  Whole companies, churches, schools order Fair Trade
   labeled
Challenges
     Fair Trade model obviously works, yet it is not widely used.
     Lack of consensus even among Fair Trade advocates

 1. Identifying and motivating consumers.
 2. Addressing consumer misperceptions and resistances.
 3. Keeping a focus on crafts.
 4. Determining a fair wage.
 5. Reconciling mission-based Fair Trade with mainstream
    distribution.
 6. Developing parallel certification processes.
 7. Minimizing unintended political and economic results.
 8. Overcoming staffing and funding limitations
                                                        www.fairtraderesources.org
World Fair Trade Day

  May 13th – International Fair Trade Day
Links for further
reading
    www.fairtrade.cz
    www.fairtraderesources.org
    www.jedensvet.org
    en.wikipedia.org/wiki/Fair_Trade

  Thank you, have a fair day…

								
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