Fair Trade-Understanding Fair Trade

The following information is used for educational purposes only.

Understanding Fair Trade

What is Fair Trade?

Fair Trade is a global movement to alleviate poverty in ways that are economically, socially and environmentally sustainable. By offering farmers and farm workers competitive prices, improved terms of trade and social premiums for community investment, Fair Trade truly does make every purchase matter because industry and consumers alike know the high-quality products they buy are improving lives and protecting the environment.

Fair Trade Principles

• Fair price and credit: Democratically organized farmer groups receive a guaranteed minimum floor price and an additional premium for certified organic products. Farmer organizations are also eligible for pre-harvest credit.
• Fair labor conditions: Workers on Fair Trade farms enjoy freedom of association, safe working conditions, and living wages. Forced child labor is strictly prohibited.
• Direct trade: With Fair Trade, importers purchase from Fair Trade producer groups as directly as possible, eliminating unnecessary middlemen and empowering farmers to develop the business capacity necessary to compete in the global marketplace.
• Democratic and transparent organizations: Fair Trade farmers and farm workers decide democratically how to invest Fair Trade premiums.
• Community development: Fair Trade farmers and farm workers invest Fair Trade premiums in social and business development projects like scholarship programs, quality improvement and social empowerment trainings, and organic certification.
• Environmental sustainability: Harmful agrochemicals and GMOs are strictly prohibited in favor of environmentally sustainable farming methods that protect farmers’ health and preserve valuable ecosystems for future generations.

Look for the Label

The Fair Trade Certified™ label offers consumers a simple way to know that their products were produced in a socially-responsible manner. The third-party verification guarantees that strict social, economic and environmental standards have been met.

Fair Trade USA

Fair Trade USA is the leading independent, third-party certifier of Fair Trade products in the United States. Fair Trade USA audits and certifies transactions between U.S. companies that offer Fair Trade products and their international suppliers to guarantee compliance with Fair Trade principles. And as a development agency, Fair Trade USA educates consumers, builds supply chain for Fair Trade, brings new manufacturers and retailers into the system, and provides farming communities with tools, training and resources to thrive as international businesspeople. For more information, visit http://www.FairTradeUSA.org/

Scope

Fair Trade products come from small farmer organizations or farms with hired labor (only for certain products) in countries with low to medium development status in Africa, Asia, Oceania, Latin America and the Caribbean. Fair Trade products are marketed by national Labelling Initiatives, including Fair Trade USA, or marketing organizations working in 24 countries. More than 10,000 Fair Trade Certified™ products are sold in more than 70 countries worldwide. In the U.S. market, consumers can choose from more than 9,500 products sourced from 58 countries.

Trade, Not Aid

Farmers in Fair Trade Certified producer groups are guaranteed a fair price for their crop, and are empowered to compete in the global marketplace through direct, long-term contracts with international buyers. This market access lifts farming families from poverty through trade–not aid–keeping food on the table, children in school and families on their land.
Workers on Fair Trade Certified farms also are guaranteed fair wages and safe working conditions, and forced child labor is prohibited.

Producers on Fair Trade farms are also paid an additional Fair Trade premium for use on long-term social and business development projects such as healthcare, scholarships, women’s leadership initiatives and micro-finance programs, as voted on by the farmers and workers themselves.
In 2010, U.S. companies paid more than $14 million to build schools and hospitals, among other projects, to improve the lives of farmers around the world.

Impact

Fair Trade farmer and worker organizations (end 2010): 878
Individual farmers and workers: 1.2 million
Beneficiaries (producers + family members): more than five million
Estimated Fair Trade retail sales 2010: $1.2 billion
Estimated Fair Trade premium paid for community development in 2010: $14 million
Additional Income generated for farmers and workers since U.S. Fair Trade began (12 years): $220 million
Consumers familiar with Fair Trade label: 34%
Percentage of above consumers who trust the Fair Trade Certified label: 87%

Rigorous, Independent Certification

FLO-CERT, the independent certification body for the global Fair Trade system, is the only ISO 65 accredited ethical certification program. Three out of four consumers believe independent certification is the best way to verify a product’s ethical claims.

1 The Globescan study was commissioned by Fair Trade USA and Fairtrade Labelling Organizations International to gauge consumer awareness and attitudes toward Fair Trade. The study surveyed consumers in the 15 countries that have well-established Fair Trade markets. For more information, visit http://www.FairTradeUSA.org/

Buying Fair Trade Products

Fair Trade Certified products are sold at more than 60,000 locations across the United States, including independent and small-scale supermarkets, cafés, restaurants as well as well-known retail chains. Visit www.FairTradeUSA.org for an updated list.
Cafes and Restaurants: Ben & Jerry's Scoop Shops - Ask for any ice cream flavor featuring vanilla, chocolate or coffee Bruegger's - Ask for their daily Fair Trade Certified brewed coffee. Caribou Coffee - Ask for the Fair Trade Blend. Dunkin' Donuts - Order any hot or iced espresso drink. Einstein Bagels - Ask for their Global Village Fair Trade Blend. Indigo Coffee - Ask for their Global Village Fair Trade Blend. Noah's Bagels - Ask for their daily Fair Trade Certified brewed coffee. Peet's Coffee and Tea - Ask for the Fair Trade Blend. Seattle's Best Coffee - Ask for the Fair Trade Certified Organic French Roast. Starbucks Coffee - Ask for Café Estima. Tully's Coffee - Order any hot or iced espresso drink.

Retailers:

Costco - Look for Kirkland Signature Fair Trade Certified Coffee Fred Meyer - Look for Fair Trade Certified coffee, chocolate, tea Giant - Look for Fair Trade Certified flowers, coffee, tea, chocolate Kroger - Look for Fair Trade Certified coffee, chocolate, tea Organic Bouquet - Look for Fair Trade Certified flowers Safeway - Look for Fair Trade Certified coffee, tea, sugar Sam's Club - Look for Member’s Mark® coffee, Neu Direction Fair Trade Certified wine, Peterson Farms Fair Trade Certified Sweetened Dried Triple Cherry & Cherry Berry Blend, bananas, and online flowers Target - Look for Wandering Grape Fair Trade Certified wines, Archer Farms Fair Trade Certified coffee Trader Joe's - Look for Fair Trade Certified coffee Wal-Mart - Look for Sam's Choice Fair Trade Certified coffee, Peterson Farms Fair Trade Certified Chocolate Covered Dried Cherries Wegman's - Look for Fair Trade Certified coffee, tea, chocolate, sugar Whole Foods Market - Look for Fair Trade Certified coffee, tea, chocolate, wine, sugar, energy bars, body care products, produce, flowers, rice…etc For more information, visit http://www.FairTradeUSA.org/

Fair Trade Certification is Unique

Within the fast growing sea of ethical labels, Fair Trade remains unique. While other certifications aim to ―protect the environment‖ or ―enable companies to trace their coffee,‖ our central focus is to help farmers and workers improve the quality of their lives and take more control over their futures. Fair Trade is the only certification whose purpose is to tackle poverty and enable the empowerment of producers in developing countries.

Strict Environmental Standards

To improve producers’ living and working conditions, their environment must also be clean and healthy. Environmental standards are therefore integral to the Fair Trade criteria. These include:

• Protecting water resources and natural vegetation areas
• Promoting agricultural diversification, erosion control, and
no slash and burn
• Restricting the use of pesticides and fertilizers
• Banning use of genetically modified organisms (GMOs)
• Requiring proper management of waste, water and energy

Fair Trade also promotes organic farming with training for producers and a higher price for organic products. Many producers invest their Fair Trade premium funds in organic certification, which has led to outstanding results: more than half (62%) of all Fair Trade products in the United States were also organic.

Empowering Consumers

According to the Hartman Group (2009), more than three-fourths (76%) of consumers consider environmental and social aspects when they make purchasing decisions. Fair Trade offers a powerful way to reduce poverty through everyday shopping. The Fair Trade Certified™ label ensures consumers that the product purchased contains ingredients that have been sourced using strict Fair Trade—social, economic and environmental—standards.
And based upon a recent quantitative study commissioned by Fair Trade USA with Corporate Social Responsibility research experts GlobeScan (2010), one-third of U.S. consumers (more than 100 million Americans) are aware of and familiar with Fair Trade Certified—a four-fold increase in just five years. Ninety-three percent of these consumers believe that seeing the Fair Trade Certified label positively affects their perception of the host brand. And, once aware, eight in 10 consumers claim to have purchased Fair Trade products. For more information, visit http://www.FairTradeUSA.org/

Fair Trade Highlights: 2009-2011

Despite the global economic downturn, the Fair Trade market has experienced exceptional growth since 2009, allowing farmers and farm workers to earn more additional income than ever before. The U.S. Fair Trade Certified organic coffee market grew by 27 percent in 2010 as well, exceeding expectations and offering a powerful testimonial to the commitment of U.S. consumers and companies to more ethical and sustainable products even in challenging economic times. New Fair Trade products introduced just this year, like green peppers, vodka, apparel, herbs, spices and extracts are creating new opportunities for underserved communities around the developing world, and more and more products from cosmetics to ice cream are being made with Fair Trade Certified ingredients. The consumer retail sales of these and other Fair Trade Certified products generated more than $56 million in premium funds in 12 years for life-changing social and economic development programs. Fair Trade USA is honored to report just a few recent success stories:

Spotlight on Brazil: Celebrating a Responsible and Sustainable Future in Coffee
At the close of 2010 Brazil celebrated the end of a three year Responsible Sourcing Partnership Project (RSP) between the U.S. Agency for International Development (USAID), Fair Trade USA, Wal-Mart Stores, Inc. and SEBRAE-Minas Gerais. The project linked Brazilian coffee farmers with mass-market coffee consumers in the United States through Fair Trade, and encouraged participation of Micro and Small Enterprise Brazilian coffee producers, including small rural producers, in the global market by: (1) expanding and improving the quality of their supply; (2) increasing producer capacity; and (3) enhancing the marketing abilities of Brazilian coffee growers.
At the end of the project, farmers and cooperatives gained the advanced skills necessary to meet market demand for high volumes of Fair Trade Certified TM coffee, and ultimately turned out 118,136 hectares of sustainable farmland under production. Through this responsible capacity building, small coffee producers in Brazil were able to increase revenue from sales of Fair Trade Certified coffee by 167%.

The Sustainable Sourcing Partnership Project

Now that 2011 is upon us, Fair Trade USA is embarking on the new Sustainable Sourcing Partnership (SSP). The SSP is a unique public private partnership among the U.S. Agency for International Development (USAID), Green Mountain Coffee®, Fair Trade USA and several coffee cooperative organizations representing over 30,000 small-holder families in Brazil.

The new initiative aims to increase producer organizations’ understanding of and compliance with Fair Trade environmental standards and Brazilian environmental law. The collaboration is designed to support Fair Trade certification for new producer organizations and increase the amount of land under enhanced environmental protection through this certification. The project will also support producer organizations interested in organic production and promote marketplace access for their products. For more information, visit http://www.FairTradeUSA.org/

The Great Debate: Is Fair Trade Relevant in a High “C” Market?

―It is, of course, because Fair Trade is about so much more than price. Fair Trade is a comprehensive approach to sustainable development that supports farmers with quality improvement, environmental stewardship, business capacity training, access to credit, and community development funds to help improve lives. Moreover, consumers are increasingly looking for the credibility of third-party certification to provide assurance that their coffee was ethically and sustainably sourced.
At the end of the day, the relevance and future of Fair Trade is in the hands of the consumer. For those of us in the global community who aspire to a sustainable future for hardworking farmers, U.S. businesses and the planet, our best hope lies in our collaborative efforts to awaken the sleeping giant—the American consumer—to the power we have to change the world by making every purchase matter, including our daily cup of coffee.‖ –Paul Rice, President & CEO of Fair Trade USA

Fair Trade Sees Tremendous Growth in the Organic Sector

As more and more companies and consumers begin to align their values with their purchasing habits, and the demand for socially and environmentally responsible products continues to grow, imports of Fair Trade organic coffee into the U.S. are rapidly increasing in response. Soon to take conventional coffee by storm, Fair Trade organic coffee is up 27 percent since 2009. As 2011 begins, imports of this coffee have increased from 48 percent to 60 percent of the total import volume.100 percent of Fair Trade Certified pineapple imports were certified organic, as well as 88 percent of cocoa and 89 percent of sugar. This reflects the growing consumer trend of supporting products that did not harm the environment in their growth, harvest or production.

Research Reveals Increased Consumer Demand for Fair Trade Certified-Labeled Products
To investigate the topic of consumer demand for Fair Trade products, researchers Jens Hainmueller of the Massachusetts Institute of Technology, Michael J. Hiscox of Harvard University, and Sandra Sequeira of the London School of Economics, conducted a six-month research study in partnership with a prominent national grocery retailer. The team examined purchasing behavior among consumers at 26 stores and key findings show that the Fair Trade Certified label alone has a large positive impact on sales, that sales of the two most popular bulk coffees sold in each of the 26 test stores increased by up to 13 percent when labeled as Fair Trade Certified, and that a substantial segment of consumers are willing to pay up to eight percent more for a product bearing the Fair Trade Certified label. For more information, visit http://www.FairTradeUSA.org/

Green Mountain Coffee Converts Two Most Popular Blends to Fair Trade

In 2010 Green Mountain Coffee, one of the largest and most influential coffee companies in the United States, converted two of its top iconic blends—Our Blend and Vermont Country Blend— to Fair Trade. Not only does this increase imports of Fair Trade coffee into the U.S., providing more consumers the opportunity to choose Fair Trade more often, but it also generates a great deal of positive impact for farming communities around the world. Green Mountain is setting a standard amongst mainstream coffee companies that we hope will create a ripple effect in responsible sourcing practices.

Fair Trade Certified Mangos Bring Hope to Haiti

January 12th, 2010 marks the day that a 7.0 magnitude quake killed or injured thousands of Haitian people and left nearly two million people homeless. It was the day that changed everything in the small, colorful Caribbean nation. Amidst chaos and devastation, the people have held strong, and are working to rebuild their lives a little bit each day.

Fair Trade certification is an opportunity for the mango growers of Haiti to lift themselves out of poverty a dozen mangos at a time. It is the mission of Fair Trade USA to support and promote these courageous growers in their pursuit of improving their lives with sustainable and lasting solutions to poverty.
After months of training, capacity building, environmental planning etc…with Fair Trade USA, the first shipment of Haitian mangos of FENAPCOM became available at select Whole Foods Market locations in April 2011. Look for them, ask for them, buy them and tell all of your friends and family about the power of these Haitian mangos. It will truly make a difference.


Source: www.fairtrade.usa.org