FAIRTRADE MISSION STATEMENT:

FairTrade is aimed at benefiting those who find it difficult to sell into the international market and to trade responsibly and profitably when they do.

FairTrade brings benefits such as access to the market, with increased sales and increased income as well as advice and support.

Producers are expected to use these benefits to increase their organisations’ ability to trade responsibly and to respect and improve the lives of those who work with them, the communities in which they work and the environment.

The benefits are also to be used by any workers employed to improve their living and working conditions and those of their communities.

  

FAIRTRADE ACTORS

 

FAIRTRADE LABELLING ORGANISATIONS INTERNATIONAL (FLO)

 

Umbrella association of labelling initiatives such as Max Havelaar, TransFair, Fairtrade Foundation

 

Objectives (Fair Trade, Alex Nicholls and Charlotte Opal, 2005):

To guarantee the integrity of the FairTrade mark and certification process

To facilitate the business of FairTrade by helping to match supply and demand

To offer producer support and consultancy to improve their business strategies

 

FLO inspects producer groups to certify them for compliance with FairTrade standards, including democratic organization, financial transparency, adequate working conditions, and progress regarding social and community development goals. FLO and its members then licence companies to use FLO’s FairTrade mark to signify that for a given product the FairTrade standards, including minimum pricing, credit provision, and long-term trade relationships, have been met.

 

FLO must also comply with the ISEAL (International Social and Environmental Accreditation and Labelling) Code of Good Practice for Setting Social and Environmental Standards. This ensures that the standard-setting of FLO is credible and effective.

 

FLO-CERT

 

Certification is provided by an independent international certification company, FLO-CERT. Its tasks are:

The certification of production according to FairTrade Standards

Trade auditing: dealing with all trade partners in the system to monitor and ensure traders’ and retailers’ compliance with FairTrade Standards.

  

KEY CONCEPTS:

 

FAIRTRADE STANDARDS

These are set by FLO. They include generic standards, such as social and environmental development, and labour conditions. In addition, there are specific product standards. FairTrade Standards for cotton are as follows (http://www.fairtrade.net/cotton.html):

  • Producers are small family farms organized in cooperatives (or associations) which they own and govern democratically.
  • The FairTrade Minimum Price is paid directly to the producer organizations.
  • Environmental standards restrict the use of agrochemicals and encourage sustainability.
  • Pre-export lines of credit are given to the cooperatives if requested, of up to 60 % of the purchase price.
  • A Premium of 0,05 - 0,06 US$/kilo is added to the purchase price and is used by producer organizations for social and economic investments such as education, health services, processing equipment, and loans to members.
  • No forced labour of any kind, including child labour

 

FAIRTRADE MINIMUM PRICE

Producers must get a minimum price for the cotton they grow. This varies depending on which geographical areas the producers belong to. Cotton producers from 76 countries have now access to FairTrade certification. The minimum prices are set by FLO and must cover all costs of production.

FAIRTRADE PREMIUM

This is a payment made in addition to the minimum price paid by buyers. The premium is set by FLO and not the buyer, who must pay it the producers. The premium money is used to help the community and the business facilities. Projects such as the building of schools and recreational facilities, as well as training, have been undertaken with premium money. It must be noted that premium money is never given to an individual worker, but rather to the community.

 

Example for 2005/2005 (http://www.fairtrade.net/cotton.html )

 
The FairTrade Mark for cotton applies ONLY to cotton growing, rather than other stages in the production process – for example garment manufacturing. Labour conditions in factories manufacturing clothes, for example are therefore not covered by the FairTrade Mark. FairTrade are nevertheless taking steps to further their involvement in the manufacturing stage. Updates on the situation will be posted here!


CASE STUDIES


How does FairTrade help?

Read about cotton producing communities and the impact of FairTrade

UC-CPC de Djidian “Danaya Tom”, MALI http://www.fairtrade.org.uk/producers/cotton/uccpc_de_djidian/default.aspx

Dougourakoroni Cotton Produces Cooperative, MALI http://www.fairtrade.org.uk/producers/cotton/dougourakoroni_cotton_producers.aspx

Agrocel Pure and Fair Cotton Grower’s Association, INDIA http://www.fairtrade.org.uk/producers/cotton/agrocel_pure_and_fair_cotton_growers.aspx