Fairtrade Sourcing Programmes threats or opportunities? International Conference Universities Developing Social Entrepreneurship through Cross-Section Collaboration Ashraf M Hamad 2 Sept

What is Fair Trade? Fair Trade defines a trading partnership, based on dialogue, transparency and respect, which seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in developing countries. 2

FAIRTRADE Mark The FAIRTRADE Mark is recognized by consumers around the world as the leading social and sustainable development Mark. It inspires high trust in consumers around the world that a considered purchase improves the lives of people and communities in developing countries. 4,500 Fairtrade products available in more than 120 countries 3

Fairtrade Sourcing Programmes (FSPs)  A response to the frustration and disappointment of Fairtrade cotton, cocoa and sugar farmers that they can still only sell a small proportion of their crop on the Fairtrade market.  A new approach to connecting businesses with producers in sourcing Fairtrade cocoa, sugar and cotton on Fairtrade terms. 4

Opportunities! 5 The Fairtrade Sourcing Programs bring more of the benefits of Fairtrade to everyone involved, starting with farmers:  More benefits for farmers  More opportunities for businesses  More choices for shoppers

Opportunities (cont.)  Starting from October 2015 to reach 100% Fairtrade cocoa by  The Fairtrade premium will reach £1.5 after

Threats! 7  Consumer trust and confusion;  Impact on small producers;  Dilution of fairtrade standards;  Competition with the original mark.

A Final Thought! In order to achieve the benefits of FSPs without compromising the original FAIRTRADE Mark model, would the big companies accept to communicate their commitment to Fairtrade ONLY through their corporate responsibility reports rather than using the new FSPs marks? 8

9 THANK YOU for your attention. Please feel free to raise any questions or comments. Further inquiries: Ashraf Hamad: