Members of the movement advocate the payment of higher prices to exporters, as well as improved social and environmental standards. The movement seeks definition of international trade pdf promote greater equity in international trading partnerships through dialogue, transparency, and respect. It promotes sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers in developing countries. Secondly, the world trade practices that currently exist promote the unequal distribution of wealth between nations.
Lastly, buying products from producers in developing countries at a fair price is a more efficient way of promoting sustainable development than traditional charity and aid. Fairtrade International label, broke from the system and is implementing its own fair trade labelling scheme, which has resulted in controversy due to its inclusion of independent smallholders and estates for all crops. The fair trade movement is popular in the UK, where there are 500 Fairtrade towns, 118 universities, over 6,000 churches, and over 4,000 UK schools registered in the Fairtrade Schools Scheme. 65 million in fairtrade premium paid to producers for use developing their communities.
According to Fairtrade International, nearly six out of ten consumers have seen the Fairtrade mark and almost nine in ten of them trust it. Some criticisms have been raised about fair trade systems. Some research indicates that the implementation of certain fair trade standards can cause greater inequalities in some markets where these rigid rules are inappropriate for the specific market. Some suppliers use relationships started in a fair trade system to autonomously springboard into direct sales relationships they negotiate themselves, whereas other direct trade systems are supplier-initiated for social responsibility reasons similar to a fair trade system. Packers in developed countries pay a fee to The Fairtrade Foundation for the right to use the brand and logo, and nearly all the fee goes to marketing. Packers and retailers can charge as much as they want for the coffee.
The coffee has to come from a certified fair trade cooperative, and there is a minimum price when the world market is oversupplied. The cooperatives can, on average, sell only a third of their output as fair trade, because of lack of demand, and sell the rest at world prices. The exporting cooperative can spend the money in several ways. Some is spent on social projects such as building schools, health clinics and baseball pitches. Sometimes there is money left over for the farmers. The cooperatives sometimes pay farmers a higher price than farmers do, sometimes less, but there is no evidence on which is more common.
The marketing system for fair trade and non-fair trade coffee is identical in the consuming countries, using mostly the same importing, packing, distributing and retailing firms. Some independent brands operate a “virtual company”, paying importers, packers and distributors and advertising agencies to handle their brand, for cost reasons. To become certified fair trade producers, the primary cooperative and its member farmers must operate to certain political standards, imposed from Europe. FLO-CERT, the for-profit side, handles producer certification, inspecting and certifying producer organizations in more than 50 countries in Africa, Asia, and Latin America. There remain many fair trade organizations that adhere more or less to the original objectives of fair trade, and that market products through alternative channels where possible, and market through specialist fair trade shops, but they have a small proportion of the total market. Fair trade is benefiting farmers in developing countries, whether that be considerably or just a little.
The nature of fair trade makes it a global phenomenon, therefore, there are diverse motives for understanding group formation related to fair trade. The social transformation caused by the fair trade movement also varies around the world. Teaching organic soil testing in Nicaragua. Three young Nicaraguan women demonstrate to visiting U. In this study, thirty-four farmers were interviewed. Of those thirty-four growers, twenty-two had an understanding of fair trade based on internationally recognized definitions, for example, describing fair trade in market and economical terms or knowing what the social premium is and how their cooperative has used it.
Three growers explained a deep understanding of fair trade, showing a knowledge of both fair market principles and how fair trade affects them socially. Nine growers had erroneous or no knowledge of Fair Trade. The three growers who had a deeper knowledge of the social implications of fair trade all have responsibilities within their cooperatives. One is a manager, one is in charge of the wet mill, and one is his group’s treasurer. These farmers cited switching to organic farming, wanting to raise money for social projects, and more training offered as reasons for joining the cooperative, other than receiving a better price for their coffee.