Fair Trade Facts

What is Fair Trade?

'Fair Trade is a trading partnership, based on dialogue, transparency and respect, that 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 – especially in the South.

Fair Trade organizations have a clear commitment to Fair Trade as the principal core of their mission. They, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade. They can be recognised by the WFTO logo.

Fair Trade is more than just trading: it proves that greater justice in world trade is possible. It highlights the need for change in the rules and practice of conventional trade and shows how a successful business can also put people first.'


Why should you support fair trade?

1. Fair Trade means fair pay and working conditions for farmers and producers. Fair Trade products are made in safe and healthy working conditions, where farmers and producers receive a fair price and have a voice in how their workplace is run.
2. Fair Trade is better for the environment. Fair Trade supports sustainable practices that minimize our environmental footprint.
3. Fair Trade means high quality goods. Artisans take pride in their work. Crafts are often handmade, which translates into closer attention to detail and in the end higher-quality products.
4. Fair Trade means better tasting food. Farmers are involved and invested in the entire production process, and crops are grown and harvested in smaller quantities. As a result, Fair Trade food is fresher and tastier.
5. Fair Trade is safe. Fair Trade actively promotes integrated farm management systems that improve soil fertility and preserve valuable ecosystems, and limit the use of harmful agrochemicals that present dangers to farmers’ health. That means food that’s safer for you and for the people who grow it.
6. Fair Trade supports communities. By working through cooperative structures, Fair Trade artisans and small farmers are able to invest Fair Trade earnings in their communities, improving housing, healthcare, and schools.
7. Fair Trade is trade farmers can count on. Fair Trade is committed to strengthening direct partnerships between buyers and producers. These partnerships provide an avenue for buyers to purchase quality products from people they trust, and offer a sustainable and reliable way for farmers, artisans and their families to improve their livelihood.
8. Fair Trade connects you with other cultures. Fair Trade products are unique to the places they come from and the people who make them. Farmers and artisans are involved in the entire process, and Fair Trade products reflect the people and cultures they come from.
9. Fair Trade means sustainable local economies. Fair Trade gives farmers and artisans control of their own future. They can build their own businesses, rather than working for a middle man, and the profits stay in their communities and go back into their businesses.
10. Fair Trade means what you buy matters. By choosing Fair Trade products, you are not only accessing high quality products, you are making a difference in the lives of the people who grow the food you eat and the goods you use.

1. “Fair trade makes free trade work for the world’s poor,” said Paul Rice, Fair Trade USA’s founder, president and CEO. Free trade leaves small-scale producers behind when large subsidized companies start to take over their industries. Large contracted farms can afford to sell commodities at lower prices but local farmers, who have traditionally supplied these products, are driven into debt. The only way these farmers can compete with subsidized farms is to lower their product prices to the point where labor is free and quality of life is unsustainable.

2. Products certified as fair trade ensure equitable trade practices at every level of the supply chain. This entails a high level of transparency and traceability in global supply chains. Democratically organized farming groups receive a guaranteed minimum floor price (or the market price if it’s higher) and an additional premium for certified organic products. Farming organizations also are eligible for pre-harvest credit.

3. The fair trade license fees generate funds, which are given to the fair trade communities. This money is specifically designated for social, economic and environmental development projects such as scholarships, schools, quality improvement and leadership training and organic certification. Each community determines how their funds will be used through democratic systems.

4. Workers on fair trade farms enjoy freedom of association, safe working conditions and sustainable wages. Forced child and slave labor are strictly prohibited.

5. Fair trade certified products are free of genetically engineered ingredients, and must be produced with limited amounts of pesticides and fertilizers and proper management of waste, water and energy.


Where to buy Fair Trade?

http://www.wellingtonfairtrade.org.nz/#!businesses/c1e0k
http://www.commonsenseorganics.co.nz/yk-files/e0aa80c0f73a9678f09df0bb0b819a81/Buying+Fair+Trade+In+The+Wellington+Region+2011.pdf
http://fairtrade.org.nz/sites/default/files/Fairtrade%20Purchasing%20Guide%20NZ%20-%20October%202013.pdf
http://www.wellingtonfairtrade.org.nz/#!fair-trade-city-wellington/mainPage

10 principles of Fair Trade

06 October 2011 by the World Fair Trade Organisation 
 

WFTO prescribes 10 Principles that Fair Trade Organizations must follow in their day-to-day work and carries out monitoring to ensure these principles are upheld:

Principle One: Creating Opportunities for Economically Disadvantaged Producers

Poverty reduction through trade forms a key part of the organization's aims. The organization supports marginalized small producers, whether these are independent family businesses, or grouped in associations or co-operatives. It seeks to enable them to move from income insecurity and poverty to economic self-sufficiency and ownership. 



Principle Two: Transparency and Accountability

The organization is transparent in its management and commercial relations. It is accountable to all its stakeholders and respects the sensitivity and confidentiality of commercial information supplied. The organization finds appropriate, participatory ways to involve employees, members and producers in its decision-making processes. It ensures that relevant information is provided to all its trading partners. The communication channels are good and open at all levels of the supply chain.

Principle Three: Fair Trading Practices

The organization trades with concern for the social, economic and environmental well-being of marginalized small producers and does not maximize profit at their expense. It is responsible and professional in meeting its commitments in a timely manner. Suppliers respect contracts and deliver products on time and to the desired quality and specifications.

Fair Trade buyers, recognizing the financial disadvantages producers and suppliers face, ensure orders are paid on receipt of documents and according to the attached guidelines. An interest free pre-payment of at least 50% is made if requested.

The organization maintains long term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. 

The organization works cooperatively with the other Fair Trade Organizations in country and avoids unfair competition. 

Fair Trade recognizes, promotes and protects the cultural identity and traditional skills of small producers as reflected in their craft designs, food products and other related services.


Principle Four: Payment of a Fair Price

A fair price is one that has been mutually agreed by all through dialogue and participation, which provides fair pay to the producers and can also be sustained by the market. Where Fair Trade pricing structures exist, these are used as a minimum. Fair pay means provision of socially acceptable remuneration (in the local context) considered by producers themselves to be fair and which takes into account the principle of equal pay for equal work by women and men. Fair Trade marketing and importing organizations support capacity building as required to producers, to enable them to set a fair price.

Principle Five: Ensuring no Child Labor and Forced Labor

The organization adheres to the UN Convention on the Rights of the Child, and national / local law on the employment of children. The organization ensures that there is no forced labor in its workforce and / or members or homeworkers.

Principle Six: Commitment to Non Discrimination, Gender Equity and Freedom of Association

The organization does not discriminate in hiring, remuneration, access to training, promotion, termination or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, HIV/Aids status or age. The organization provides opportunities for women and men to develop their skills and actively promotes applications from women for job vacancies and for leadership positions in the organization. The organization takes into account the special health and safety needs of pregnant women and breast-feeding mothers. 

Principle Seven: Ensuring Good Working Conditions

The organization provides a safe and healthy working environment for employees and / or members. It complies, at a minimum, with national and local laws and ILO conventions on health and safety.

Working hours and conditions for employees and / or members (and any homeworkers) comply with conditions established by national and local laws and ILO conventions.

Principle Eight: Providing Capacity Building

The organization seeks to increase positive developmental impacts for small, marginalized producers through Fair Trade.

The organization develops the skills and capabilities of its own employees or members. Organizations working directly with small producers develop specific activities to help these producers improve their management skills, production capabilities and access to markets - local / regional / international / Fair Trade and mainstream as appropriate. 


Principle Nine: Promoting Fair Trade

The organization raises awareness of the aim of Fair Trade and of the need for greater justice in world trade through Fair Trade. It advocates for the objectives and activities of Fair Trade according to the scope of the organization. The organization provides its customers with information about itself, the products it markets, and the producer organizations or members that make or harvest the products. Honest advertising and marketing techniques are always used.



Principle Ten: Respect for the Environment 
 

Organizations which produce Fair Trade products maximize the use of raw materials from sustainably managed sources in their ranges, buying locally when possible. They use production technologies that seek to reduce energy consumption and where possible use renewable energy technologies that minimize greenhouse gas emissions. They seek to minimize the impact of their waste stream on the environment. Fair Trade agricultural commodity producers minimize their environmental impacts, by using organic or low pesticide use production methods wherever possible.

Buyers and importers of Fair Trade products give priority to buying products made from raw materials that originate from sustainably managed sources, and have the least overall impact on the environment.

All organizations use recycled or easily biodegradable materials for packing to the extent possible, and goods are dispatched by sea wherever possible.

What is a Fair Trade City?

There are over 1,000 Fair Trade Towns in more than 20 countries.... Wellington was the Southern Hemishpehere’s first Fairtrade Capital City! 

A Fairtrade Town is a town, city, village, island, borough, county, zone, district or region that has made a commitment to supporting Fairtrade and using products with the FAIRTRADE Mark.

A Fairtrade Town is a community in which people and organisations use their everyday choices to increase sales of Fairtrade products and bring about positive change for farmers and workers in developing countries.

We can all make a difference by supporting trade that works for development each time we shop. A Fairtrade Town builds on what we as individuals can do by bringing people together to send a collective message. Becoming a Fairtrade Town is a shared achievement and an opportunity for local government, schools, businesses, community organisations and activists to work together. Through doing so, each individual action adds up to make even more of a difference to farmers in developing countries.

To become a Fairtrade Town, a community needs to meet certain goals that are set and monitored at national levels.  These goals are designed to increase understanding of trade and development issues and sales of products certified by independent labelling organisations dedicated to guaranteeing a better deal for farmers in developing countries.

The 5 goals needed to be met to be a Fairtrade town or city is:

1. Local council passes a resolution supporting Fairtrade, and agrees to serve Fairtrade products (for example, in meetings, offices and canteens).

2. A range of (at least two) Fairtrade products are readily available in the area’s retail outlets (shops, supermarkets, newsagents, petrol stations) and served in local catering outlets (cafés, restaurants, pubs).

3. Local workplaces and community organisations (places of worship, schools, universities, colleges and other community organisations) support Fairtrade and use Fairtrade products whenever possible.

4. Media coverage and events raise awareness and understanding of Fairtrade across the community.

5. A local Fairtrade steering group is convened to ensure the Fairtrade Town campaign continues to develop and gain new support.

Community organisations, faith groups, businesses, schools and individuals all contribute to making their area a Fairtrade Town by pledging to do what they can to support Fairtrade and promote the FAIRTRADE Mark.


The International Coffee Organisation (ICO) estimates that over 125 million people worldwide depend on coffee for their livelihoods. Many of them live close to absolute poverty, which means that when prices are halved within a period of five years, they can no longer meet their basic needs for food, medicine or schooling for the children. Shifting to other crops is difficult, and there are not many crops that will give a better income than coffee, even with the extremely low prices of today. Many will therefore choose either migration to larger cities or, especially in countries such as Mexico, illegal migration to richer countries.

The reason for the low prices is overproduction. As can be seen in figure 2.1, there is a general trend towards more and more coffee production each year. Total production in coffee in 2001/02 was estimated at around 113 million bags (60 kilo per bag) while world consumption was just over 106 million bags.


During a period of ten years the country has gone from being an unimportant actor in the market, to becoming the second largest exporter in the world. But most other countries have also increased their production. Many indebted countries in need of export earnings have encouraged coffee production in order to repay their debts.