FAIR TRADE Learning About Fair Trade

FAIR TRADE Learning About Fair Trade Region: Global Focus: Fair Trade What s Inside? Map/definitions 2 What s fair trade? 3 Photo-essay 4 History of fair trade 6 How does fair trade help producers? 7 Fair trade today 8 Certification 9 Fair trade certified premium 10 Premiums and social projects photo essay 11 How fair trade organizations are structured 13 Try it out 14 What are people doing to support fair trade? 15 What can you do 16 Photos: Eric St-Pierre (www.ericstpierre.ca) unless mentioned

Locator Map Cotton Sugar Bananas Cocoa Sports Balls Coffee Concepts and definitions Child labour: Work that exceeds a minimum number of hours, depending on the age of the child, and on the type of work. Child labour harms, abuses, and exploits children and deprives them of an education. It is illegal in many countries. (UNICEF) Cooperative: An organization jointly owned and operated democratically by people for their mutual benefit. A cooperative can be owned/controlled by the people who use the goods or services or by the people who work there. Ethical consumption: Purchasing goods and services made ethically with minimal harm to the environment, humans or animals. Fair trade: An international trading system that works to ensure higher wages and income for producers, as well as improved working and environmental conditions and social standards. Human Development Index (HDI)- Is a summary measure of human development used by the United Nations. It measures the average achievements in three basic dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living. Global North: Refers to the 57 countries with high human development that have a Human Development Index (HDI) above 0.8. Most, but not all, of these countries are located in the Northern Hemisphere. Global South: Refers to the countries with medium (less than 0.8) and low human development (less than 0.5) most of which are located in the Southern Hemisphere. Most of the Global South is located in South and Central America, Africa, and Asia. Globalization: To extend to all parts of the globe. In this context, globalization means the ever-increasing movement of growing, producing and trading products and services around the world by corporations as opposed to locally or nationally. Plantation: Growing one crop on a very large scale, most often for a foreign market. 2

What s Fair Trade? Fair: Some thing that is free from injustice or unfairness. Trade: To transfer the ownership of goods and services from one person or group to another. Fair trade is a trading partnership, based on mutual respect, which aims to ensure higher wages and income for producers in the Global South. It contributes to sustainable development by working to ensure improved working and environmental conditions and social standards. Fair trade organizations, backed by consumers, support producers by purchasing fair trade products, and raising awareness about the benefits of fair trade. YouTube videos can be viewed where School Board Acceptable Use Policy allows it. Every effort has been made to provide the correct URLs for pre-screened YouTube videos. However, these sites can change and the URL address could lead students to sites that are inappropriate. FOCUS QUESTIONS 1. 2. 3. What are the connections between trade, fair trade and injustice for people and the planet? Why is it important to think about where and how our products and services are grown and made? What actions are people taking around the world to make trade fair for workers, families, communities and the planet? Watch! Why does fair trade matter? The world trading system isn t fair for everyone. Companies demand profit What is fair trade? (1:04 mins) and consumers want inexpensive products. As a result, some of the people An introductory video by Oxfam who grow food and manufacture products earn very little money for their vimeo.com/3983264 effort. Approximately 20 percent of the world s population lives on less than a dollar a day and more than 40 percent of the world s workers have incomes Fair Trade: The Story (8:41 mins) under USD$2 a day. An introductory video by TransFair Because of our global trade system, people in places around the globe are USA picking, processing, selling and manufacturing the goods and services you www.youtube.com/ use every day. But they aren t always paid well or treated fairly in the process. watch?v=nhqjrz-adfi Under the current world trading system, the rich are getting richer and the poor are getting poorer. And the planet is also suffering under the pressure. But there is an alternative. Fair trade was developed in response to the challenges facing producers in the Global South who have mostly been excluded from the benefits of trade. Through fair prices and investment in local community development, fair trade ensures that these producers have the opportunity to build a better future for themselves and their families through trade. Using the chart on page 2 of the Taking Action Guide, list a few things you are wearing, or have used or consumed today. Beyond the store, where did they come from originally? Where were they picked or made? BRAINSTORM Source: The World Bank, 2007, Understanding Poverty. www.worldbank.org. 2005-04-19. Retrieved 2010-10-24. Breakfast Clothing Sneakers What is it? What is it made of? Where did it come from? In this case study, you will learn the foundations of fair trade what it means and why and how it works. Then you ll explore some ways that your actions as ethical consumers can make a difference for a more just and equitable world. 3

Fair Trade Products: Did you know certified fair trade products in Canada include coffee, tea, sugar, cocoa, ch 1 Anita, an artisan with Hajiganj Handicrafts, near Saidpur, Bangladesh. Handicrafts were one of the first fairly traded products. In 1946, Edna Ruth Byler from Pennsylvania imported needle work from Puerto Rican women. Her initiative led to the establishment of the network of fair trades handicrafts stores known today as Ten Thousands Villages, which has 50 stores across Canada. 3 Harvest time at the Makaibari private tea garden one of the first fair trade and organic certified tea plantations in the region of Darjeeling India. In 1997, tea was the first fair trade product that came from large private plantation with hired labour. This was a contrast to the democratic organizations of small-scale growers, the established model for fairly traded coffee, cocoa, sugar, rice and many other products. 2 In the village of Tabou in Burkina Faso, Zénabou and other producers from the Union of Léo are kneading the shea kernel paste, one of the 20 steps to produce shea butter, a fair trade product. Used both for cooking food in Africa, and for body care, shea butter is a balm with a thousand uses: skin moisturizer, sun screen, hair conditioner, topical antibiotic, decongestant, and muscle anti-inflammatory. Found only in Africa, shea kernels are traditionally harvested and processed by women, an important and often unique source of income for women in rural Africa. 4

colate, sports balls, bananas and other fruits and juice, spices, rice, quinoa, flowers, wine, cotton, and arts and crafts? A magnificent bouquet of fair trade blossoms harvested in the greenhouses of Nevado Roses in Ecuador. Certified by Fairtrade Labelling Organizations International (FLO), since 2004, fair trade flowers have seen steady growth and make up more than 50 percent of the market share in Switzerland! In general, Ecuador and Colombia provide fair trade flowers to North America, while Kenya, Zimbabwe and Tanzania send their stems to Europe. 4 Which of these products do you use? BRAINSTORM Som Mai and her husband, Tawee are replanting rice seedling on three hectares of land in the region of Yasothon 5 in Thailand. They will save more than a third of their rice to feed their family and the rest will be sold through fair trade markets. Although rice production reaches an astonishing 650 billion tonnes annually, only 7 percent of this rice crosses an international border (compared to 80 percent in the case of coffee)! Rice nourishes half of the world s population. Photos: Eric St-Pierre (www.ericstpierre.ca) Miguel-Angel Mayorga gathers freshly cut sheaves 6 of quinoa in his fields in the Ancoyo Valley on the Bolivian Altiplano. Quinoa is rich in proteins and mineral salts and contains no gluten. It also contains all the amino acids essential for human nutrition. So, if human beings were forced to eat only one food, quinoa would be the one to choose! 5

The History of Fair Trade For more information about Ten Thousand Villages, visit their website at: www.tenthousand villages.ca or watch this short video: www.youtube.com/ watch?v=wuhhcumfrgi (7:33 mins) The issues that created the need for fair trade date back to the earliest days of colonization and exploitation of many countries in the Global South. The roots of modern fair trade extend back 60 years. In the 1940s an American volunteer in Puerto Rico was impressed with the needlework of the local women and shocked by their poverty. She brought back samples of the work and began selling them from her car to women in her community. This work grew into a network of stores that eventually became the more than 130 Ten Thousand Villages stores in North America. In the 1950s in Europe, OXFAM, an international development organization, began promoting handicrafts made by Chinese refugees in Hong Kong. This work grew into Third World Shops that opened in the 1960s throughout Europe. International fair trade organizations and networks grew from these early efforts by focusing on food products such as coffee and sugar. In 1998, a fair trade certification and labelling initiative was introduced by Max Havelaar in the Netherlands. This increased the visibility of fair trade to the general public. Certification ensures that consumers are able to easily identify fair trade products, and that producers organizations are able to maintain and uphold fair trade standards. 6 Source: St-Pierre, Eric (2010). Fair Trade: A Human Journey. Les Éditions de l Homme, Quebec

How Does Fair Trade Help Producers? A fair trade label on a product carries with it certain guarantees and must meet certain standards. Fair trade follows seven simple guidelines: Direct trade Buyers and retailers of a product here in Canada purchase the product directly from the producer. This enables the retailer to develop a personal relationship with the producers and assist them with distribution and selling of their products. This means very few middle agents and more money going into the pockets of the those who do the work and produce the products. Fair pricing Fair trade guarantees a fair price to the producers no matter what is happening in the global market. This fair price ensures that it covers the cost of living and production of the goods and because the farmers know what they will receive they can plan for the future. Democratic and transparent organizations Most fair trade goods are purchased through producer organizations like cooperatives because cooperatives allow many small farmers can join together to have greater volumes of goods to sell. To be certified as fair trade, these organizations must ensure that all members of the organization, including women, have a direct say in the decisions of the organization and how the income is distributed and spent. Protection of the environment Although all fair trade goods are not necessarily organic, fair trade cooperatives make a commitment to develop sustainable production practices which will protect the environment and ensure the long term viability of their farms. Community development A fair trade premium is also paid on certified fair trade goods. This is an additional amount above the fair trade price that is paid directly by the buyers to the producers to assist in community development. The money from this premium must be re-invested into economic, social or environmental development. This is often used to assist families through the development of such services as improved health care and schools, small business loans, and training and education. Long-term trade relationships Because the buyers and sellers of fair trade goods have a direct and close personal relationship, they can develop new products and product lines, improve production practices, create joint marketing strategies, and generally develop longterm business plans and create sustainable livelihoods for the producers. Access to credit for producers Because of these close and direct relationships between buyers and producers, producing cooperatives have opportunities to credit and loans. This credit can help producer cooperatives reinvest in and improve their businesses creating better and more reliable goods. This also enables producer cooperatives to set up community savings banks and small loan companies. 7

Fair Trade Today Fair trade is now a growing local and global movement working on social and economic justice issues and a certification system for products. Four key organizations work collaboratively to coordinate international elements of fair trade: Fairtrade Labelling Organizations International (FLO) www.fairtrade.net World Fair Trade Organization (WFTO, formerly the International Fair Trade Association or IFAT) www.wfto.com Network of European World Shops (NEWS) www.worldshops.org European Fair Trade Association (EFTA) www.european-fair-trade-association.org The goals of fair trade are: to work with marginalised producers and workers to help them move from a position of vulnerability to security and economic self-sufficiency; to empower producers and workers as stakeholders in their own organisations; and to play a wider global role to achieve greater equity in international trade. As of 2011, sales of fair trade products have reached US 5 billion dollars. And this good work is growing. In Canada, fair trade sales reached $200 million, the fifth largest fair trade market in the world and the fastest growing. Success in the Global South 827 fair trade certified farmer and worker organizations 60 countries where fair trade producers are present 1.2 million farmers and workers benefit from fair trade Success in the Global North 27,000 fair trade products worldwide Over 70 countries where fair trade products are sold 2,849 total number of fair trade licenses The Future of Fair Trade Fair trade certification is changing: As big businesses are becoming involved in fair trade, how are the goals of fair trade upheld? If producers are seeking much more control over the fair trade process, how might this impact international certification? How can we as consumers ensure that we re still supporting trading practices that reflect sustainability and self-sufficiency? Source: St-Pierre, Eric (2010). Fair Trade: A Human Journey. Les Éditions de l Homme, Quebec 8

Have you ever seen these labels on coffee, bananas, sugar, or tea? Look for them the next time you are in the grocery store. What happens if we don t have fair trade standards? How Does Fair Trade Certification Work? In Canada When a fair trade product reaches Canada, Fairtrade Canada is involved the monitoring and certification. Companies that are interested in doing the initial processing or packaging become licensed through Fairtrade Canada, and report their sales and purchases on a quarterly basis and have annual audits. Companies that are interested only in selling finished fair trade products are not required to report or become licensed, but must use the fair trade label responsibly. Only licensees are able to use the Fair Trade Certified Label on their products, ensuring consistency and reliability. The label above left is the one most commonly used in Canada, but the label above right is most often used in Europe, Latin America, Africa, and Asia. Both are accepted. This is the guarantee for consumers that the product has been produced under fair trade standards. Globally Fairtrade Labelling Organization (FLO) International develops and reviews the Fair Trade Standards and provides support and training for producers to help them meet the requirements to be certified and to expand market opportunities. The FLO labelling system is for commodity based products, like sugar, fruit, oils, nuts, coffee, cotton, etc. Handicrafts and artisan work is handled differently. Find out how at www.wfto.com FLO-CERT is a sister organization to FLO that coordinates information related to the inspection and certification of producers and traders, including on-site inspections and follows the international ISO standard for certification bodies. In the Country of Origin FLO-CERT works with producer organizations across the world to ensure that the products are produced under the fair trade standards and producers pay for this certification process. To view the process, visit www.flo-cert.net/ flo-cert/main.php?id=82. 9

Fair Trade Certified Pricing and the Fair Trade Premium The fair trade price is the minimum price paid to producer associations for their products. But many buyers pay more than the minimum based on differences in quality and commitment to paying the true value of the product. In addition, producers receive an extra payment called the fair trade premium (or social premium). This premium is used by producer organizations to fund social projects such as schools, training, health care, transportation, micro-credit, housing improvements, clean drinking water and so on. Producers decide together how to best use this premium based on what is best for their families and communities. The fair trade premium seems small, but it adds up to a lot! Fair trade premiums are used to support many social programs, including: Watch! Fair Trade School in Yrgacheffe, Ethiopia (3:09 mins) www.youtube.com/wa tch?v=md8ebiqzs3m& feature=related This short video shows how the fair trade premium has been used to support community schools. Community projects Education Environment Health Business and Production Women s Programs Sample Fair Trade Premiums 2009 Africa- US$17.6 million Asia- US$7.8 million Latin America and the Caribbean- US$47.1 million What do these sample fair trade premiums tell you about the fair trade industry in each of these regions? 10 Source: St-Pierre, Eric (2010). Fair Trade: A Human Journey. Les Éditions de l Homme, Quebec

BRAINSTORM How Fair Trade Organizations Are Structured BRAINSTORM How are the products above connected to the different structures below? Large corporations are starting to sell fair trade. What does this mean for the future of fair trade? Producers market their products through fair trade organizations and companies. Only one company, Divine Chocolate from Kuapo Kokoo, currently markets directly to Norther consumers. Companies often help producers process, package and market their products. Plantations: Some commodities, like tea or bananas, are grown on large estates or plantations. The fair trade label ensures that the workers on the plantations receive a consistent living wage, adequate labour standards and are allowed to organize themselves into workers unions to protect their rights. Plantations have to invest in social programs; for example, investing in retirement plans so older workers have a retirement income. Unions: A union is an organization of workers who have joined together to achieve common goals, such as better pay or improved working conditions. Together, workers can leverage their labour as a bargaining tool with managers and owners for changes they could not achieve on their own. Small-scale producers: Other commodities, like coffee, are grown by many small-scale producers and farmers on smaller family plots. In these cases, groups of small-scale farmers form organizations, like cooperatives, combining their products and processing, marketing and selling them jointly. Cooperatives: For these cooperatives, the fair trade label ensures they are paid a decent price for their crops that can support their families and value their efforts. In addition, producer groups receive the fair trade premium to support community-based social improvement projects, such as schools and health clinics. In a cooperative, producers become equal members and share in the decision-making process. There is considerable debate among fair trade supporters as to if and how plantations, with powerful owners and extensive market share, can truly embody all of the fair trade principles. Watch! Santiago s Story (2000, 6 mins.) Made by TransFair USA, this is the story of Santiago and his family, coffee farmers in Nicaragua. He discusses the challenges in getting a fair price for coffee and the effects of switching to fair trade coffee. www.youtube.com/ watch?v=m9u1q1g8odc 11

Premiums and Social Projects 1 Shoba Baroi has been an artisan with Keya Palm, for the last 23 years. At the end of the year, the group s profit is redistributed to the artisans in the form of an annual bonus and a deposit in a retirement fund. After 23 years of contribution, Shoba s savings will help her in her retirement years, something not many rural Bangladeshis could even dream about. Keya Palm is a member of Prokritee, which united seven artisans organizations to support their production and marketing in the fair trade networks such as Ten Thousands Villages in Canada. Lukeya Kalaoulé, 32, is a mother of four children and a shea butter producer. She is a member of the Union de Léo in Burkina Faso. As a child she never went to school, but now she is learning to read in Sissala, her mother tongue, thanks to a program paid for with fair trade premiums from the sale of shea butter. 2 BRAINSTORM How do these images and captions impact your ideas about fair trade? A good sign of environmental health, a toad 3 sits on a banana leaf, on the organic plantation belonging to Guillermo Limones, an El Guabo member in Ecuador. In Canada, 59 percent of fair trade sales involve products that are also certified organic. The remainder of fair trade production has to follow environmental guidelines and limit the use of pesticides. 12

Agrogana and the other 45 fair trade 4 certified organizations in the flower sector have to follow the FLO standards for hired labour, that are based on principals from the United Nations International Labor Organization (ILO). As a result, Rosa San-Pedro enjoys three weeks of paid vacation annually, as required by the fair trade certification standards. Photos: Eric St-Pierre (www.ericstpierre.ca) Using organic methods, Phakphum Inpaen grows six kinds of beans, 12 varieties of fruit, 15 varieties of vegetables, and 20 kinds of edible herbs, as well as an abundance of rice all this on a few hectares of land. 6 5 Education is one of the most important sectors for social development and accounts for 12 percent of fair trade premiums spending in Asia and 16 percent in Africa. In the Samabeong tea plantation in India, primary schools are available for all children of plantation workers. With the contribution from fair trade premiums, the plantation has also been able to build and manage a high school that is attended by more than 400 local students, many from outside of the plantation. 13

Try It Out! Four Fair Trade Scenarios Locate these countries on your world map. Producer Case Study 1 - India Your entire community used to work for a British tea company. The land was owned by the company, and everyone worked either tending the tea plants, picking tea, or in the factory. No one from your community was ever in a management position, and you were barely paid enough money to feed your family. The price for tea has been steadily decreasing and the production facilities in your community have closed. They have sold the land back to the Indian government. The tea plants still exist, but many are old and do not produce high quality tea. You decide to work together to improve your situation. In this exercise, you do not need to solve the problem, but you do need to figure out how to work together. What is the key issue here? How will you work together? Who is part of the group? How can they join? What do you have in common? Do you share any values? How will the group make decisions? Is there a leader or spokesperson for the group? How is this person chosen? Producer Case Study 2 - Colombia You live in a community of campesinos (small-scale farmers) who farm their own land. You used to grow different fruits and coffee, but the price of these is very low and changes all the time. There is a lot of pressure to sell land to a foreign company to produce pineapples for export. They are offering a good price for the land. You decide to work together to improve your situation. In this exercise, you do not need to solve the problem, but you do need to figure out how to work together. What is the key issue here? How will you work together? Who is part of the group? How can they join? What do you have in common? Do you share any values? How will the group make decisions? Is there a leader or spokesperson for the group? How is this person chosen? Producer Case Study 3 - Paraguay You farm sugar cane on your own farm in Paraguay. Sugar cane requires a lot of processing before it can be exported and a lot of equipment. All the farmers have to sell their sugar cane to the local mill owner to be processed. He pockets all the profits and gives you barely enough to live on, but he is the only mill owner around. He has all the contacts and all the equipment. You decide to work together with other sugar cane farmers to improve your situation. In this exercise, you do not need to solve the problem, but you do need to figure out how to work together. What is the key issue here? How will you work together? Who is part of the group? How can they join? What do you have in common? Do you share any values? How will the group make decisions? Is there a leader or spokesperson for the group? How is this person chosen? Producer Case Study 4 - Bolivia You grow cocoa pods in the Amazon basin of Bolivia. The region is very isolated and the only transportation is by private boat. Because you are paid so little for your crop, your husband has gone to La Paz to seek work. You have to grow the cocoa and take care of your 5 children. You decide to work together with others in the community to improve your situation. In this exercise, you do not need to solve the problem, but you do need to figure out how to work together. What is the key issue here? How will you work together? Who is part of the group? How can they join? What do you have in common? Do you share any values? How will the group make decisions? Is there a leader or spokesperson for the group? How is this person chosen? 14

What are People Doing to Support Fair Trade? PEOPLE ARE STARTING AND GROWING FAIR TRADE ORGANIZATIONS Just Us! Coffee Roasters Co-op, Nova Scotia www.justuscoffee.com La Siembra/Camino, Ontario www.lasiembra.com FibrEthik, Quebec www.firbethik.org ACTORS AND MUSICIANS ARE SPEAKING OUT Coldplay s Chris Martin for Oxfam (2:28) www.youtube.com/watch?v=ackem19feho&fe ature=related REVERSE TRICK-OR- TREATING Halloween is normally a time for chocolate, candy, and fun in North America. A new North American campaign was launched in 2008 to raise awareness about the situation of child labour in the cocoa industry through a Reverse Trick-or-Treating campaign. Fair Trade and organic chocolate companies donated small pieces of chocolate to give away (as a reverse trick-or-treat), along with information on Fair Trade. www.globalexchange.org/campaigns/fairtrade/ cocoa/reversetrickortreating/ca FAIR TRADE TOWNS NATIONAL FAIR TRADE WEEKS National Fair Trade Weeks are always celebrated the first two weeks of May (May 1 15) in Canada. International World Fair Trade Day is May 9. In both cases, community groups and fair trade organizations work to organize film screenings, public talks, producer visits, and actions that highlight fair trade. World Fair Trade Day (Globally): www.wftday.org Fairtrade Canada: www.fairtrade.ca/en/get-involved/fair-trade-fortnight For more ideas on how to get involved, access Fairtrade Canada at www.fairtrade.ca/en/getinvolved/what-else-can-you-do Since 2000, towns, villages, cities, universities, schools and even countries have been awarded fair trade status. Wolfville, NS is Canada s first Fair Trade Town having committed to 6 goals of fair trade and ethical purchasing. Worldwide, there are more than 350 Fair Trade Towns, each taking on a unique approach to support fair trade producers. In Canada: www.fairtrade.ca/en/get-involved/ fair-trade-towns 15

What can you do? Spread the word about the issues! Some examples? Join a campaign Map: where you buy FT products locally or online Sell Fair Trade products for school fundraisers Develop an ethical purchasing, consumption or fundraising policy at your school Write letters about FT to your local newspaper Drop off cards at local stores requesting FT products Take action for change! Become an ethical consumer Watch! Fair trade TV (26 mins) A film made by Tatamagouche, NS junior-high students to educate their peers on fair trade. www.youtube.com/user/happytelevisions#p/a/u/1/cmw0iofk7ii Reel Youth (3:36 mins) Short youth-led film on ethical and fair trade purchasing www.citizenshift.org/globalization The Big Swap (1:33 mins) Fairtrade Foundation (UK) This video shows how swapping one non-fair trade item for a fair trade one can make a difference www.youtube.com/watch?v=vqwbowuhhgs&feature=related As responsible consumers, we care about where our products come from, how they were made, and under what conditions. Those conditions matter. We want to know that our dollars are supporting socially just and environmental companies and practices that contribute to sustainability and a better future for all of us. How can we be more responsible consumers? It s more than just buying fair trade. It s about asking questions, like: Do I need it? Who made it? Our everyday actions... such as what we choose to drink and eat have an impact on the How far did it travel to get to me? planet and its inhabitants. With our money, as Is the packaging recyclable? little as we may have, we can vote for a world free from exploitation. How will I ultimately dispose of it? Laure Waridel, 2002, Coffee with Pleasure Can it be composted or reused? Is there a more ethical choice? Is there a more environmentally-friendly alternative? 16