What is behind the International FAIRTRADE mark

© Fairtrade 2012

What's behind the FAIRTRADE Mark? A brief introduction to the world’s most recognized ethical label.

tisdag 23 oktober 12

© Fairtrade 2012

What is the FAIRTRADE Mark?

When you buy products with the international

FAIRTRADE Mark, you make a positive difference for

small-scale farmers and workers around the world.

Products bearing the Mark meet the social, economic

and environmental standards set by Fairtrade

International (FLO).


© Fairtrade 2012

What is Fairtrade International?

Fairtrade International (FLO) is a non-profit association

with partners and supporters all over the world. Our

members include three producer networks representing

the interests of Fairtrade farmers and workers, and 22

national organizations who raise awareness and

market and promote the FAIRTRADE Mark in consumer

countries. Fairtrade International USA represents the

international Fairtrade system in the US.


© Fairtrade 2012

What is Fairtrade International?

Fairtrade Internationals Vision

A world in which all producers can enjoy secure,

sustainable livelihoods, fulfill their potential and

decide on their future.

Fairtrade Internationals Mission

To connect disadvantaged producers and

consumers, promote fairer trading conditions and

empower producers to combat poverty, strengthen

their position and take more control over

their lives.


© Fairtrade 2012

The Mark appears on over 27,000 products in 120 countries around the world

Cocoa Composite products

Cotton Dried fruits

Flowers Fresh fruit and vegetables

Nuts

Herbs and spices

Honey

Olives Olive Oil Quinoa Rice

Soybeans & pulses

Sports balls Spirits Sugar Tea

Timber Wine

Coffee

Fruit juices


© Fairtrade 2012

Distribution of Fairtrade farmers and workers

by sub-region 2010

Caribbean

Northern Africa

Central Asia

Western Africa

Middle Africa

Southern Africa

Western Asia

Eastern Africa

South-Eastern Asia

Melanesia

Southern Asia

Eastern Asia

Central America

South America

Farmer members of Fairtrade organizations

28,000 2,500 30,500101,700 1,400 103,100132,600 5,900 138,500

262,200 9,800 272,000

416,400 48,600 465,00029,200 29,200

800 8,400 9,200200 13,000 13,200

121,600 2,900 124,400

568,200 72,800 641,000

1,000 1,0005,700 5,7008,600 8,600

31,500 100 31,60058,500 80,100 138,700

2,600 2,600108,000 80,200 188,200

Workers in Fairtrade hired labour organizations

Total farmers and workers


© Fairtrade 2012

Regional distribution of small farmers

within the Fairtrade system 2010

South-Eastern AsiaMelanesia

Eastern AsiaCentral Asia

Middle AfricaNorthern AfricaSouthern AfricaWestern Africa

Central America

CaribbeanWestern Asia

Southern Asia

Eastern AfricaSouth America

Eastern Africa

Middle Africa

Northern Africa

Southern Africa

Western Africa

Central Asia

Eastern Asia

Melanesia

South-Eastern Asia

South-Eastern Asia

Western Asia

Caribbean

Central America

South America

45%

3%

0%

0%

13%

0%

1%

1%

3%

6%

0%

3%

11%

14%


© Fairtrade 2012

Regional distribution of workers

within Fairtrade certified hired labour organizations 2010

Eastern Africa

Northern Africa

Southern Africa

Western Africa

South-Eastern Asia

Southern Asia Total

Caribbean

Central America

South America

30%

5%

8%

2%

0%

49%

1%

1%

4%

South-Eastern Asia

Northern Africa

Southern Africa

Western Africa

Southern Asia

Eastern Africa

South AmericaCentral America

Caribbean


© Fairtrade 2012

The International FAIRTRADE mark is the most

recognized ethical label in the world*, and it offers

unique benefits for producers in developing countries.

1. Fair and stable prices

2. The Fairtrade Premium for development

3. Empowerment of small scale farmers and workers

4. Democratic involvement of producers at all levels

of decision-making

Why is Fairtrade Unique?

*According to a global study of 17,000 consumers in 24 countries carried out for Fairtrade International by GlobeScan in 2011.


© Fairtrade 2012

1. Fair and stable prices

• The Fairtrade Minimum Price aims to cover the costs of sustainable production for the producer. It’s a safety net for farmers when market prices fall below a sustainable level. Without it, farmers are at the mercy of sudden drops in value for their crops.

• When the market price is higher than the Fairtrade Minimum Price, producers receive the market price or the price agreed at contract signing.

Figure: The cocoa market 1994–2007: Comparison of Fairtrade & New York exchange prices.

NB Fairtrade price – $1,600 per tonne + $150 premium.When the New York price is $1,600 or above, then the Fairtrade price – New York price + $150 premium.

0

500

1,000

1,500

2,000

2,500

April 1994

Fairtrade

New York

June 1997

Oct 200216-year high of $2,335

May 1999 Nov 2001 Aug 2007U

S$ p

er to

nn

e

Nov 200027-year low of $714


© Fairtrade 2012

“More important than the higher prices is the stability that Fairtrade brings. We are not as vulnerable to market volatility as we used

to be”

Valentín Chinchay, member of FAPECAFES, a Fairtrade certified coffee cooperative in Ecuador.

Photo: Didier Gentilhomme


© Fairtrade 2012

• The Fairtrade Premium is a sum of money paid

on top of the agreed price for investment in

social, environmental or economic development

projects.

• The use of the Premium is decided upon

democratically within the organization or by

workers on a plantation.

• The Premium is typically invested in education

and healthcare, farm improvements to increase

yield and quality, or processing facilities to

increase income.

2. The Fairtrade Premium for development


© Fairtrade 2012

“We are using the Fairtrade Premium to source seeds of indigenous and exotic trees that we want to plant to improve the soil and attract more rain. It is possible for us to adapt to climate change if we get the right assistance.”

Wildfred Kasitomu, Satemwa Tea Estate, Malawi.

(Picture: A farmer at Satemwa)

Photo: Didier Gentilhomme


© Fairtrade 2012

• The Fairtrade Standards are developed to recognize

the reality on the ground and the challenges faced

by producers in each product category.

• Fairtrade works to empower the most marginalized

in the global trade system,small-scale farmers and

workers.

• By favoring democratic organizations of small

farmers, Fairtrade gives the stability rural families

need to plan for the future.

• For more information about the standards visit

http://www.fairtrade.net/standards.html

3. Empowerment of small scale farmers and workers


© Fairtrade 2012

“The great thing about Fairtrade is that it enables cocoa farmers to have a say in shaping our future through talking and working directly with retailers and companies.”

Santos Mendoza, President CONACADO, Dominican Republic

(Picture: A farmer in CONACADO)

Photo: Jasper Carlberg


© Fairtrade 2012

• Producers jointly own and manage Fairtrade

International (FLO).

• Producers are involved in decisions on overall

strategy and setting prices, premiums and

standards.

• The international Fairtrade system regularly

consults all stakeholders - including farmers,

traders, businesses and NGOs - to evaluate and

update the Fairtrade Standards in an open and

transparent process.

4. Democratic involvement of producers at all levels of decision- making.


© Fairtrade 2012

“Fairtrade is a change agent. It promotes a new way of being. And it works because it’s about involving people throughout the whole system in deciding on and making this change.”

Raúl del Águila, Manager of the COCLA coffee cooperative in Peru and Producer Representative on the Fairtrade International Board.

Photo: Fairtrade International


© Fairtrade 2012

Fairtrade Producers in 2011-2012

PRODUCERORGANIZATIONSWORLDWIDE991

MILLIONFARMERS AND WORKERS IN COUNTRIES661.2

OVER

MILLIONIN FAIRTRADEPREMIUM PAIDIN 2011

$84


© Fairtrade 2012

With a network of over 50 staff in the field, a

certification fund to support small farmers,

partnerships with development agencies, and the

newly announced Fairtrade Access Fund, the

international Fairtrade system makes sure farmers

and workers receive the support needed to make

the most of Fairtrade.

Support on the ground

of Fairtrade prVK\JLYZ�OH]L�ÄUHUJPUN�ULLKZ� Over half of these requirL�SVUN�[LYT�ÄUHUJL��

PrVQLJ[LK�ZPaL�VM�[OL�UL^�-HPY[YHKL��(JJLZZ�-\UK�

91%

$25MILLION


© Fairtrade 2012

Producers at the heart of Fairtrade

regional producer networks represent the interests of Fairtrade producers.

liaison ofÄJLYZ�Vffer support and training on the ground.

of our budget is spent on direct services for producers.

3

52

47%

The people we serve have a strong say in how

Fairtrade is run. We took that to a new level

last year, when the General Assembly voted

unanimously to make producers equal owners of

the global Fairtrade system.


© Fairtrade 2012

Improvement and growth

Our 25 members, including producer networks and

national organizations, work together to

continuously refine and improve the Fairtrade

model with the input of all stakeholders.

There are now Fairtrade Standards for over 300 raw products, three times more than in 2006.

of Fairtrade prices & Premiums were revised in the last three years.

producers were asked for their input on Standards in 2011 – almost half responded.

300

78%

1400


© Fairtrade 2012

A Label You Can Trust

NEARLY 6 IN 10 CONSUMERS HAVE SEEN THE FAIRTRADE MARK AND OF THOSE, 9 IN 10 TRUST IT.

* according to a GlobeScan survey carried out in 24 countries.


© Fairtrade 2012

Unique in the market

Loyal customers

• Nearly six in ten consumers (57%) across the 24

surveyed countries have seen the FAIRTRADE

Certification Mark.

• 91% of these trust the Mark.

• A further 64% believe Fairtrade has strict

standards, a quality that closely correlates to

consumer trust.


© Fairtrade 2012


Market leader

• Since Fairtrade’s beginnings in the 1980s and the

launch of the current FAIRTRADE Mark in 2002,

Fairtrade has become the most widely-

recognised ethical label in the world.

• Sales of Fairtrade certified products have been

growing at an average of 40% per year over the

last five years.

• Fairtrade has achieved very strong market share

in certain markets, including 55% of bananas in

Switzerland and 22% of ground coffee in the UK.


© Fairtrade 2012


Independent certification

• With Fairtrade, the whole supply chain is

checked from field to shelf.

• Standards are set according to the ISEAL Code of

Good Practice for Standard Setting. ISEAL is the

global association for sustainability standards.

• FLO-CERT, the independent certification body for

Fairtrade is the only ISO 65 accredited ethical

certification scheme.

• Three out of four consumers believe independent

certification is the best way to verify a product’s

ethical claims.


© Fairtrade 2012

FLO-CERT is the independent certification body for Fairtrade and one of the first companies to be ISO65 accredited - the leading, internationally accepted norm for certification bodies operating a product certification system.

Photo: Miriam Ersch


© Fairtrade 2012

Fairtrade retail Sales in 2011

FAIRTRADE PRODUCTSNOW SOLD IN OVERCOUNTRIES 120

SHOPPERSSPENTBILLIONON FAIRTRADE PRODUCTSIN 2011, A

$6.312%

INCREASESINCE 2010


© Fairtrade 2012

Web

www.fairtradeinternational.us

Facebook

/FairtradeMarkUS

Twitter

@FairtradeMarkUS


http://www.fairtradeinternational.us

http://www.fairtradeinternational.us

https://www.facebook.com/FairtradeMarkUS

https://www.facebook.com/FairtradeMarkUS

http://twitter.com/FairtradeMarkUS

http://twitter.com/FairtradeMarkUS

Documents

What is behind the International FAIRTRADE mark