Download - 1 Fairtrade, The FAIRTRADE Mark and Fairtrade in The UK Mark Varney The Fairtrade Foundation
The Fairtrade Foundation’s Vision
“Our vision is of a world in which justice and sustainable development are at the heart of trade structures and practices so that everyone, through their work, can
maintain a decent and dignified livelihood and develop their full potential.”
The Scale of World Poverty
1 billion people live on less than $1 a day Half the world (about 3 billion) live on less than $2 a day
So what does this actually mean for people in their daily lives ?
1.1 billion (1 in 6) have no access to clean drinking water and 2.6 billion ( nearly half the world ) lack basic sanitation (WHO)
Approx 790 million are chronically undernourished
30,000 children die every day due to poverty ( UNICEF )That is now about 10 million children a year under 5 yrs
Source: Oxfam 2007
Fairtrade Certification Structure
Fairtrade Labelling Organisation International (FLO)
FLO EV FLO - Cert
21 National Labelling Initiatives – “LI`s”
Fairtrade Foundation - UK
Max Havelaar - France
TransFair USA
TransFair Germany
Max Havelaar Switzerland
•Standards Unit (SU)•Producer Services & Relations (PSR)•Global Product Management (GPM)•Global Account Management (GAM)
•Separate legal entity •Certifies Producer groups •Registered supply chains•Annual auditing•ISO 65
Fairtrade Mark Ireland
0.00
40.00
80.00
120.00
160.00
200.00
240.00
280.00
320.00
US
cent
s/lb
Fairtrade
New York
Jan 1989 June 2007Jan 1996 Oct 1999
Frost damage
in Brazil 1994
Drought in Brazil 1999
Drought in Brazil
1997
Collapse of International Coffee Agreement 1989
NB Fairtrade price = Fairtrade minimum price of 121 cents/lb + 10 cents/lb premium*
When the New York price is 121 cents or above, the Fairtrade price = New York price + 10 cents
* Premium was increased from 5 cents/ lb on 1 J une 2007
The NY price is the daily closing price of the second position Coffee 'C ' futures contract at the NY Board of Trade © Fairtrade Foundation
The Arabica Coffee Market 1989-2007: Comparison of Fairtrade and New York Prices
October 2001
30-year low of 45 cents
March 2003
Fairtrade Standards
Social, Organisational and Gender Environmental
Economic
Tipping the Balance
1. Increasing Fairtrade’s impact on producers’ lives
2. Shifting public opinion and consumer lifestyles to make Fairtrade the norm
3. Expanding business engagement with Fairtrade from just compliance to deeper commitment
4. Growing Fairtrade’s share of key markets to propel sales to a new level
5. Scaling up and developing the Fairtrade Systems
What commercial value can Fairtrade add?
• Contributes to brand equity and customer engagement
•A tangible and easily identified part of company CSR strategy
• Supports staff motivation and corporate pride
• Helps develop links with local communities
• Supports supply chain security and sustainability
Tipping the Balance
1. Increasing Fairtrade’s impact on producers’ lives
2. Shifting public opinion and consumer lifestyles to make Fairtrade the norm
3. Expanding business engagement with Fairtrade from just compliance to deeper commitment
4. Growing Fairtrade’s share of key markets to propel sales to a new level
5. Scaling up and developing the Fairtrade Systems