Economics and Poverty. Commodity Prices in Real Terms: Jute Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004 Commodity Prices in Real.

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Presentation transcript:

Economics and Poverty

Commodity Prices in Real Terms: Jute Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004 Commodity Prices in Real Terms: Jute

Commodity Prices in Real Terms: Rubber Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

Commodity Prices in Real Terms: Cocoa Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

Commodity Prices in Real Terms: Coffee Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

Commodity Prices in Real Terms: Sugar Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

Commodity Prices in Real Terms: Bananas

Commodity Prices in Real Terms: Tea Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

Commodity Prices in Real Terms: Cotton Figures from FAO ‘The State of Agricultural Commodity Markets’ 2004

The Real Cost of Cotton

Direct and Indirect Impacts of Fairtrade Through trading standards - FLO estimates that in 2005 €80m went to producers in Fairtrade minimum price and premium; benefitting community more widely

Minimum prices and Premium in Mali Pricing in Mali  The conventional cotton price fell 24% (€0.31 to €0.24) per kilo  Fairtrade Certified Cotton was established  A minimum Fairtrade price is €0.36 per kilo  Plus a premium of € Mali Case Study

The Arabica Coffee Market 1989 – 2009: Comparison of Fairtrade and New York Prices

The Cocoa Market 1994 – 2009: Comparison of Fairtrade and New York Prices

Impact for Small-holders and Workers: 1. For Producers and their Families  Gerado Camacho, Coocafé; ‘The Fairtrade price allows us to survive as coffee farmers. It covers our costs of production, lets us send our kids to school, buy clothes and keep a roof over our heads.’

“Women now join in the decision making. The women are now involved in the “Women now join in the decision making. The women are now involved in the harvest and decisions about production and conservation. We were part of the decision to build a new school.” Bamakan Souko, Dougourakoroni.

Impacts for Small-holders and Workers: 2. For Producer Organisations Arturo Gomez, Coopetrabasur; ‘Before I was someone that took a box and loaded it onto a train. That was my only responsibility. I was just a farmer, who was an intermediary. In this new system I have become an international business man.’ 3. For Community Development Millennium Development Goals Environmental Sustainability Health Education

In one village, premium use in year 1: build 2 classrooms

Premium use year 2: build 2 classrooms…

…and the government builds 4

Impact on Public Recognition of the FAIRTRADE Mark Recognition = % of people who recognize the Fairtrade symbol Source: MORI /TNS Omnibus studies NB figures remain confidential.

Grassroots Social Movement  427 Fairtrade Towns  93 Fairtrade Universities  Over 5000 Fairtrade faith groups  Over 2000 schools signed up to the new Fairtrade School Scheme

What is a Fairtrade School?  A Fairtrade School is a school that has achieved five goals.  This usually takes at least a year and involves the whole school  A Fairtrade School is a school that….

...has set up a Fairtrade steering group

….has produced a Fairtrade School Policy

...is committed to selling Fairtrade products

...to promoting Fairtrade products

... and using Fairtrade products

...learns about Fairtrade issues across at least three subject areas

...promotes and takes action in school

…and the wider community

... Your local supermarket?

We publicise what we do... so that others will follow

Fairtrade Links with Geography Curriculum National Curriculum KS1 Knowledge and Understanding of Places How places are linked to other places in the world National Curriculum KS2 Recognise how places fit together and are interdependent Environmental change and sustainable development National Curriculum KS3 Global citizenship Encourages critical thinking Interdependence Cultural understanding and diversity

UK Sales of Fairtrade Products ales of Fairtrade Products : 44% increase from 2007

In 2008 Tate & Lyle announced all their retail sugar would be Fairtrade, benefiting 6000 sugar producers in Belize who will receive a Fairtrade premium of around £2 million in the first year alone.

“I know that Fairtrade works. I have seen the positive impact on the banana growers in the Windwards Islands since we decided at the end of 2006 to move Sainsbury’s bananas to 100% Fairtrade. But we are not doing this for altruistic reasons – we know that our customers support the objectives of Fairtrade in helping guarantee farmers in the developing world a fair and stable price.” Justin King, CEO, Sainsbury’s

41 Working with 632 producer organisations across 3 continents in 59 countries Benefitting 7.5 million people Fairtrade Internationally Global Fairtrade Movement

So we can the balance of power tip