Fair trade is a foundation whose stated goal is to help producers in developing countries achieve better trading conditions.
Members of the movement advocate the payment of higher prices to exporters, as well as improved social and environmental standards. The movement focuses in particular on commodities, or products which are typically exported from developing countries to developed countriesbut also consumed in domestic markets e. Brazil, India and Bangladesh most notably handicraftscoffeecocoawine, sugar, fresh fruit, chocolateflowers and gold.
It promotes sustainable development by offering better trading conditions to, and securing the rights of, "Fair trade producten online dating" producers and workers in developing countries.
Secondly, the world trade practices that currently exist promote the unequal distribution of wealth between nations. Lastly, buying products from producers in developing countries at a fair price is a more efficient way of promoting sustainable development than traditional charity and aid. Fair trade labelling organizations commonly use a definition of fair trade developed by FINEan informal association of four international fair trade networks: Specifically, fair trade is a trading partnership, based on dialogue, transparencyand respect, that seeks greater equity in international trade.
Fair trade organizations, backed by consumers, are engaged actively in supporting producers, awareness raisingand in campaigning for changes in the rules and practice of conventional international trade.
Additionally, Fair Trade USAformerly a licensing agency for the Fairtrade International label, broke from the system and is implementing its own fair trade labelling scheme, which has resulted in controversy due to its inclusion of
Fair trade producten online dating smallholders and estates for all crops.
The fair trade movement is popular in the UK, where there are Fairtrade towns, universities, over 6, churches, and over 4, UK schools registered in the Fairtrade Schools Scheme. Some criticisms have been raised about fair trade systems. One study in a journal published by the MIT Press concluded that producer benefits were close to zero because there was an oversupply of certification, and only a fraction of produce classified as fair trade was actually sold on fair trade markets, just enough to recoup the costs of certification.
Some suppliers use relationships started in a fair trade system to autonomously springboard into direct sales relationships they negotiate themselves, whereas other direct trade systems are supplier-initiated for social responsibility reasons similar to a fair trade system. There are a large number of fair trade and ethical marketing organizations employing different marketing strategies.
Packers and retailers can charge as much as they want for the coffee. The coffee has to come from a certified fair trade cooperative, and there is a minimum price when the world market is oversupplied. Additionally, the cooperatives are paid an additional 10c per lb premium by buyers for community development projects.
Some go to meeting the costs of conformity and certification: Some meet other costs. Some is spent on social projects such as building schools, health clinics and baseball pitches.
Sometimes there is money left over for the farmers. The cooperatives sometimes pay farmers a higher price than farmers do, sometimes less, but there is no evidence on which is more common. The marketing system for fair trade and non-fair trade coffee is identical in the consuming countries, using mostly the same importing, packing, distributing and retailing firms.
Some independent brands operate a "virtual company", paying importers, packers and distributors and advertising agencies to handle their brand, for cost reasons. To become certified fair trade producers, the primary cooperative and its member farmers must operate to certain political standards, imposed from Europe.
There remain many fair trade organizations that adhere more or less to the original objectives of fair trade, and that market products through alternative channels where possible, and market through specialist fair trade shops, but they have a small proportion of the total market. Fair trade is benefiting farmers in developing countries, whether that be considerably or just a little.
The nature of fair trade makes it a global phenomenon, "Fair trade producten online dating," there are diverse motives for understanding group formation related to fair trade.
The social transformation caused by the fair trade movement also varies around the world. A study of coffee growers in [Guatemala illustrates the effect of fair trade practices on growers.
In this Fair trade producten online dating, thirty-four farmers were Fair trade producten online dating. Of those thirty-four growers, twenty-two had an understanding of fair trade based on internationally recognized definitions, for example, describing fair trade in market and economical terms or knowing what the social premium is and how their cooperative has used it.
Three growers explained a deep understanding of fair trade, showing a knowledge of both fair market principles and how fair trade affects them socially. Nine growers had erroneous or no knowledge of Fair Trade. One is a manager, one is in charge of the wet mill, and one is his group's treasurer. These farmers did not have a pattern in terms of years of education, age, or years of membership in the cooperative; their answers to the questions, "Why did you join?
These farmers cited switching to organic farming, wanting to raise money for social projects, and more training offered as reasons for joining the cooperative, other than receiving a better price for their coffee.
Many farmers around the world are unaware of fair trade practices that they could be implementing to earn a higher wage. They could, however, identify fair trade based on some of its possible benefits to their community.
When asked, overall, farmers cited that fair trade has had a positive effect on their lives and communities.
They also wanted consumers to know that fair trade is important for supporting their families and their cooperatives. Some producers also profit from the indirect benefits of fair trade practices. Fair trade cooperatives create a space of solidarity and promote an entrepreneurial spirit among growers. When growers feel like they have control over their own lives within the network of their cooperative, it can be very empowering.
Operating a profitable business allows growers to think about their future, rather than worrying about how they are going to survive in poverty. As far as farmers' satisfaction with the fair trade system, the growers want consumers to know that fair trade has provided important support to their families and their cooperative.
Overall, farmers are satisfied with the current fair trade system, but some farmers, such as the Mazaronquiari group from CAC Pangoa, desire yet a higher price for their products in order to live a higher quality of life. A component of trade is the social premium that buyers of fair trade goods pay to the producers or producer-groups of such goods.
An important factor of the fair trade social premium is that the producers or producer-groups decide where and how it is spent. These Fair trade producten online dating usually go towards socioeconomic development, wherever the producers
Fair trade producten online dating producer-groups see fit. Within producer-groups, the decisions about how the social premium will be spent is handled democratically, with transparency and participation. Producers and producer-groups spend this social premium to support socioeconomic development in a variety of ways.
One common way to spend the social premium of fair trade is to privately invest in public goods that infrastructure and the government are lacking in. These public goods include environment initiatives, public schools, and water projects.
At some point, all producer-groups re-invest their social premium back into their farms and businesses. They buy capital, like trucks and machinery, and education for their members, like organic farming education. Thirty-eight percent of producer-groups spend the social premium in its entirety on themselves, but the rest invest in public goods, like paying for teachers' salaries, providing a community health care clinic, and improving infrastructure, such as bringing in electricity and bettering roads.
Farmers' organisations that use their social premium for public goods often finance educational scholarships. In terms of education, the social premium can be used to build and furnish schools too. Most of the fair trade import organizations are members of, or certified by one of several national or international federations. These federations coordinate, promote, and facilitate the work of fair trade organizations. The following are some of the largest:.
Inthe first four federations listed above joined together as FINEan informal association whose goal is to harmonize fair trade standards and guidelines, increase the quality and efficiency of fair trade monitoring systems, and advocate fair trade politically. Student groups have also been increasingly active in the past years promoting fair trade products.
The involvement of church organizations has been and continues to be an integral part of the Fair Trade movement:. The first attempts to commercialize fair trade goods in Northern markets were initiated in the s and s by religious groups and various politically oriented non-governmental organizations NGOs. The goods themselves had often no other function than to indicate that a donation had been made. The current fair trade movement was shaped in Europe in the s.
Fair trade during that period was often seen as a political gesture against neo-imperialism: The slogan at the time, "Trade not Aid", gained international recognition in when it was adopted by the United Nations Conference on Trade and Development UNCTAD to put the emphasis on the establishment of fair trade relations with the developing world.
Bythe oversized newsprint publication, the Whole Earth Catalogwas connecting thousands of specialized merchants, artisans, and scientists directly with consumers who were interested in supporting independent producers, with the goal of bypassing corporate retail and department stores.
The Whole Earth Catalog sought to balance the international free market by allowing direct Fair trade producten online dating of goods produced primarily in US and Canada, but also in Central and South America.
Inthe first worldshop opened its doors in the Netherlands. The initiative aimed at bringing the principles of fair trade to the retail sector by selling almost exclusively goods produced under fair trade terms in "underdeveloped regions". The first shop was run by volunteers and was so successful that dozens of Fair trade producten online dating shops soon went into business in the Benelux countries, Germany, and other Fair trade producten online dating European countries.
Throughout the s and s, important segments of the fair trade movement worked to find markets for products from countries that were excluded from the mainstream trading channels for political reasons. Thousands of volunteers sold coffee from Angola and Nicaragua in worldshops, in the back of churches, from their homes, and from stands in public places, using the products as a vehicle to deliver their message: In the early s, Alternative Trading Organizations faced major challenges: The decline of segments of the handicrafts market forced fair trade supporters to rethink their business model and their goals.
Moreover, several fair trade supporters during this period were worried by the contemporary effect on small farmers of structural reforms in the agricultural sector as well as the fall in commodity prices. Many of them came to believe it was the movement's responsibility to address the issue and remedies usable in the ongoing crisis in the industry.
In the subsequent years, fair trade agricultural commodities played an important role in the growth of many ATOs: The first fair trade agricultural products were tea and coffee, quickly followed by: Sales of fair trade products only really took off with the arrival of first Fairtrade certification initiatives. Although buoyed by ever growing sales, fair trade had been generally contained to relatively small worldshops scattered across Europe and to a lesser extent, North America.
Some felt that these shops were too disconnected from the rhythm and the lifestyle of contemporary developed societies. The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers. The only way to increase sale opportunities was to start offering fair trade products where consumers normally shop, in large Fair trade producten online dating channels.
The independent certification allowed the goods to be sold outside the worldshops and into the mainstream, reaching a larger consumer segment and boosting fair trade sales significantly. The labeling initiative also allowed customers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the producers at the end of the supply chain. The concept caught on: FLO is an umbrella organization whose mission is to set the Fairtrade standards, support, inspect and certify disadvantaged producers, and harmonize the Fairtrade message across the movement.
The goals of the launch were to improve the visibility of the Mark on supermarket shelves, facilitate cross border trade, and simplify procedures for both producers and importers.