Fairtrade

HFA4M: Global Issues Assignment

Lily Lin

FairtradeWho we are:• 24 organizations from different countries

When we stared:• The first Fairtrade label ， Max Havelaar

in 1988. • The Fairtrade Labeling Organizations

International (FLO) ， Bonn, Germany in 1997

Fairtrade Vs Fair Trade

Facts

• Farm products affected by

- nature (climate change etc.)

- market (recession etc.).

• For some of the Least Developed Countries, farm products is a large portion of their incomes

Coffee

• 4 years to grow, little return • 25 million coffee farmers globally• some developing countries one of pillars of econ

omy

• 1994, frost, Brazil, US$2.80/pound    • 2002, 8%more produced, affected 100 million

people, US$0.45/pound, starvation

Fairtrade standards for coffee

• Floor price: US$ 1.25/pound for Fairtrade certified washed Arabica

• Differentiate: Fairtrade certified organic coffee US$ 0.20 cents/pound

• Premium: US$ 0.10/pound added to the purchase price • Others

2008, global sales:

• $1.75 billion Fairtrade coffee industry

• $70 billion global coffee industry

Producers • Financial security (market)

• production stability (nature)

• Enjoy rights (Partnership,authority)

Why Choose “Fairtrade”?

Why Choose “Fairtrade”? Companies

• positive impact on consumers

• a new prospect market

Environment:• environmental sustainability, protection• organic production

Consumers • products -- values, qualities and principles• support Third World producers

survey

• private-industry survey, 2008

• 179 Fair Trade coffee farmers

• Central America and Mexico

• more than half of them said that their families were hungry for several months a year

Fairtrade Data

• Sales grew 40% (2003-2008)• Retail value: US$3.2 billion, 2007

• over 60 developing countries • 1.5 million people are supported (Include family,

would be over 7.5 million people.)

• Fairtrade grew faster than other “ethical products”: - organics - sustainable fish - cosmetics not tested on animals

problems & suggestions:

• World wide barriers: Developed and developing countries should work together

• Fairtrade Expenses Should lower expenses and improve standards

• Other unavoidable element: farm product – original low price

Can fair trade help cure world hunger?

poverty & hunger

BUY

Thank you!

www.fairtrade.net