Title: FAIR TRADE
1FAIR TRADE
What is fair trade and how does it effect small
scale farmers Sunday, December 21, 2008
2Outline
- Coffee Facts
- Coffee in Canada
- What is Fair Trade?
- Supply Chain Comparison
- Where does coffee money go?
- Coffee Price History
- Conditions of certification
- How does Fair Trade Certification Work?
- Effects of Fair Trade
- For the farmer
- For the consumer
- Case Study
3Coffee Facts
- 2nd most traded commodity in the world
- Top 10 coffee producing countries
- Brazil (31)
- Vietnam (15)
- Colombia (11)
- Indonesia (5)
- Ethiopia (5)
- 6-10. India, Peru,
- Mexico, Guatemala,
- Honduras (17 total)
- 2 Types
- High Quality Mountain grown Arabica
- Lower Quality Robusta beans
Source International Coffee Organization, 2007
4Coffee in Canada
- 81 of Canadians drink coffee occasionally
- We consume on average 2.6 cups per day. Canadians
consume 31 billion cups of coffee a year on
average - 18 of total beverage consumption
- Consumer Awareness
- 51 organic
- 38 Fair Trade
5What is Fair Trade?
- It is a certification that guarantees certain
production and trade conditions - Fair Trade products sold in Canada (Coffee,
Cocoa, Tea, Banana, Cut Flowers, Cotton, Shea
Butter, Sugar) - Fair trade is a trading partnership, based on
dialogue, transparency and respect, that seeks
greater equity in international trade (Fair
Trade Labeling Organization, 2008)
6Conventional Trade Supply Chain and the Fair
Trade Approach
Conventional Trade
Fair Trade Approach
- Multi Level supply chain
- Coffee changes hands many times
- Reduced involvement of middlemen
- More money for Farmers
7Where does the Coffee Go?
Conventional Coffee
Fair Trade Coffee
Source http//www.cbc.ca/consumers/market/files/f
ood/coffee/whogets.html
EWB Fair Trade Coffee Workshop
8Coffee Price History
Source International Coffee Organization
9Conditions for Fair Trade Certification
- Farmers create democratic cooperatives,
- Standards for hired labours
- No forced or child labour
- Must adhere to health and safety standards
- Implement programs to improve environmental
sustainability
10Certification Process
Producers
Importers
Licensees (Processors)
Retailers
Consumers
FLO International
TransFair Canada
EWB Fair Trade Coffee Workshop
11Effects on the Grower and Community
- Farmers become empowered because of the
democratic cooperative - Ensure price covers cost of production and cost
of living - Social premiums towards community development
- Access to credit (up to 60 of purchase price)
- Long term commitment from buyer
- Environmental protection because of sustainable
farming methods that are mandated - Education and capital to help diversify crops to
reduce dependence on coffee only
12Effects on the Buyer
- Feel like part of a larger movement
- Make a connection to farmers
- Drinking higher quality coffee
- Help lift farmers in developing countries out of
poverty
EWB Fair Trade Coffee Workshop
13Case Study
- ACOC, Colombia
- (Asocacion de Caficultores Organicos de Colombia)
- Co-op Established 1992
- Year Certified 1994
- Case Study and pictures courtesy of
- www.transfairusa.org
EWB Fair Trade Coffee Workshop
14Case Study
- ACOC Community Improvements
- Education
- 5 university technical scholarships / year
- Provides primary and secondary school supplies
- Productive Investment
- Purchased new processing equipment
EWB Fair Trade Coffee Workshop
15Case Study
- ACOC Community Improvements
- Environment
- Pest control and fertilization education
- Assisting the transition to organic production
- Health
- Economic support for emergency medical care,
housing improvements and disaster relief
EWB Fair Trade Coffee Workshop
16What can you?
17Where can I get Fair Trade Products?
- Got to http//www.playyourpart.ca for an
interactive map of locations in the Ottawa Area. - Bread and Sons
- Bridgehead
- 10,000 Villages
- Francescos Coffee
- Green Door Restaurant
- Human Beans Coffee Company
- ..etc.
18Thank you!
- For more information
- Check out websites of
- www.playyourpart.ca
- www.ewb.ca
- Transfair Canada
- Oxfam International
19Fair Trades approach
- Reduce involvement of middlemen
- Encourage farmers to work with community
cooperatives - Certify products comes from certified producer
organization
20Living on 2 per day
21To make it fair
22Fair Trade is a movement
- By creating an international system of doing
business based on dialogue, transparency and
respect - Contributes to sustainable development by
offering better trading conditions for producers
and workers in developing countries
23Major issues from conventional trade
- Low, fluctuating world market price
- Unfair international trade rules
- Lack of access to markets, credit and technology
- Bad work conditions for farmers, laborers
- Environmental health impacts of monocultures
and pesticides use
24Major issues from conventional trade
- Low, fluctuating world market price
- Unfair international trade rules
- Lack of access to markets, credit and technology
- Bad work conditions for farmers, laborers
- Environmental health impacts of monocultures
and pesticides use
25Fair Trade makes trade fair by
- Ensuring the products certified are
- Direct Trade
- Fair Price
- Access to credit
- Long term commitment
- Local Community Development
- Environmental protection