FAIR TRADE 101. What is Fair Trade? “Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence.

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Presentation transcript:

FAIR TRADE 101

What is Fair Trade? “Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity…” - Universal Declaration of Human Rights (art 23-3)

Fair Trade Products Coffee Tea Cocoa Fruit Flowers Sugar Grains (rice & quinoa Spices and herbs Wine Sports Balls Cotton Nuts and oils (shea butter and olive oil) Gold …the list continue to grow!

What does it mean? Higher prices for producers Long term contracts Good labour standards Sustainable farming practices Investment in community Usually producers form part of a democratic cooperative

Local Farmers Transporter Exporter Broker Importer Roaster Distributor Retailer 25 million coffee producing families ~ 125 million people Conventional Trade 4 large roasters with their own brands, each with over $1B in sales (Kraft, Nestle, Sara Lee, P&G) 5 large importers account for >40% (including Goldman Sachs) Coffee Supply Chain

The $4 Cappuccino:

Supply Chain Local Farmers Transporter Exporter Broker Importer Roaster Distributor Retailer Multi Level supply chain Coffee changes hands many times Local Farmers Cooperative Importer Roaster Retailer Reduced involvement of middlemen More money for Farmers Conventional Trade Fair Trade Approach

Coffee Price History Source: International Coffee Organization

Certification Process ProducersImportersLicensees (Processors)RetailersConsumers FLO International Fairtrade Canada $1.35/lb $16/lb whole bean $37/lb (12oz cups)

How do I know it’s Fair Trade? Look for one of these symbols!

The Cost of Fair Trade Non–Fair TradeFair Trade Starbucks: $1.95 Second Cup: $1.90Higher Ground: $1.95 Spice Café: $1.79The House: $1.70 Tim Horton’s: $1.40 Listed prices for a medium cup of brewed coffee at local coffee shops:

Criticisms Evidence of actual benefits to farmers is lacking. Farmers who aren’t able to become Fair Trade certified are left behind. Doesn’t help the poorest farmers Price distortions (high Fair Trade price => oversupply of Fair Trade products => even lower prices for non- Fair Trade farmers). Abundance of “ethical purchasing” labels confuses consumers too much. …

Questions? “Life isn’t fair, but your coffee can be.” Learn more at: Fairtrade Canada - Fairtrade Labelling Organizations -