FAIR TRADE Engineers Without Boarders: Grand River Professional Chapter
Outline • • • What is Fair Trade? Supply Chain Comparison Conditions of certification Case study: Coffee Effects of Fair Trade – For the farmer – For the consumer • Is Fair Trade really Fair? • What you can do? • Fair trade products in Waterloo Region
Fair Trade is a Movement! • By creating an international system of doing business based on dialogue, transparency and respect • Contributes to sustainable development by offering better trading conditions for producers and workers in developing countries
What is Fair Trade? • It is a certification that guarantees certain production and trade conditions • Fair Trade products sold in Canada (Coffee, Cocoa, Tea, Banana, Cut Flowers, Cotton, Shea Butter, Sugar) • “Fair trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade…” (Fair Trade Labeling Organization, 2008)
What is Fair Trade? Fair Trade Premium: Money in addition to agreed price for product Set by FLO, not the buyer $0. 10/lb in addition to Fair Trade price For the cooperative To improve business, community and environment
Conventional Trade Supply Chain and the Fair Trade Approach Conventional Trade Retailer Distributor Roaster Fair Trade Approach • Multi Level supply chain • Coffee changes hands many times Roaster Importer Broker Exporter Transporter Local Farmers Retailer Importer • Reduced involvement of middlemen • More money for Farmers Cooperative Local Farmers
Fair Trade’s approach • Reduce involvement of middlemen • Encourage farmers to work with community cooperatives • Certify products comes from certified producer organization Retailer Roaster Importer Cooperative Local Farmers
Conditions for Fair Trade Certification • • • Farmers create democratic cooperatives Standards for hired labours No forced or child labour Must adhere to health and safety standards Implement programs to improve environmental sustainability
Certification Process Producers FLO International Importers Licensees (Processors) Retailers Trans. Fair Canada Consumers
Case Study: Coffee • • 2 nd most traded commodity in the world Top 10 coffee producing countries: 1. Brazil (31%) 2. Vietnam (15%) 3. Colombia (11%) 4. Indonesia (5%) 5. Ethiopia (5%) 6 -10. India, Peru, Mexico, Guatemala, Honduras (17% total) • 2 Types: – – High Quality Mountain grown Arabica Lower Quality Robusta beans Source: International Coffee Organization, 2007
Coffee in Canada • 81% of Canadians drink coffee occasionally • We consume on average 2. 6 cups per day. Canadians consume 31 billion cups of coffee a year on average • 18% of total beverage consumption • Consumer Awareness: • 51% organic • 38% Fair Trade Source: Canadian Coffee Association (2003, 2997)
Where does the Coffee Money Go? Conventional Coffee Fair Trade Coffee EWB Fair Trade Coffee Workshop Source: http: //www. cbc. ca/consumers/market/files/food/coffee/whogets. html
Coffee Price History Source: International Coffee Organization
Effects on the Grower and Community • Farmers become empowered because of the democratic cooperative • Ensure price covers cost of production and cost of living • Social premiums towards community development • Access to credit (up to 60% of purchase price) • Long term commitment from buyer • Environmental protection because of sustainable farming methods that are mandated • Education and capital to help diversify crops to reduce dependence on coffee only
Effects on the Buyer • • Feel like part of a larger movement Make a connection to farmers Drinking higher quality coffee Help lift farmers in developing countries out of poverty
EWB Fair Trade Coffee Workshop
Fair Trade makes trade fair by: Ensuring the products certified are: • Direct Trade • Fair Price • Access to credit • Long term commitment • Local Community Development • Environmental protection
What can you do? Step 1. Know about Fair Trade. Identify the Transfair logo and know what the term “Fair Trade Certified” means. Step 2. Connect with a Farmer Understand how your choices affect a farmer in a developing country. Step 3. Buy Fair Trade! Support a developing country farmer by buying Fair Trade coffee, tea, sugar, chocolate etc.
Where can I get Fair Trade Products in the Waterloo Region? • Here are just SOME places to get fair trade products: • • • Eating Well Organically (Waterloo) Natural Food Market (Waterloo) Ten Thousand Villages (Waterloo) Organic Meadow (Guelph) Real Canadian Superstore (Kitchener) Zehrs and Sobey’s stores
Thank you! For more information: Check out websites of • www. playyourpart. ca • www. ewb. ca • http: //transfair. ca • www. oxfam. org
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