...Fairtrade and the impact on farmers’ lives Abstract Fairtrade is an organisation with the aim of improving the livelihoods of farmers from developing countries in order to support equality among people. The business is however often in the critique for procedures that are either not helpful for their farmers or even harm the market as a whole. This paper aims at analysing the Fairtrade standards as well as evidence from the literature with regard to the actual impact of the system. The results show that the standards set by Fairtrade are actually fair for their farmers, however a lack of transparency and traceability hinders their proper implementation. Furthermore, Fairtrade standards appear to have even negative effects on farmers that are not part of their organisation caused by rough price competitions as well as on the society as a whole since it hinders an autonomous development of the poor nations. Key Words: Fair Trade, Standards, Developing countries, Livelihood 1 1. Introduction The rising globalization has brought a lot of opportunities to developing countries since their agricultural products can now easily be purchased from all over the world. Due to poor economic, social and political conditions, their producers are however often underpaid and treated badly, while major corporations make the most profit out of it. While moral concerns about the origin of products are arising more and more within the last centuries in the western world, the...
Words: 5947 - Pages: 24
...----------------------- Conditions for a product to be classed as Fairtrade Fairtrade is a World wide organization that makes sure that the people would know that the products they are buying (like coffee, cotton, honey, oranges, bananas, rice, sugar and more) the producer gets the most money e.g. if a tin of coffee costs £2.50 the producer (farmer of the coffee) would get £1.00 and the other companies like Sainsbury would get less about £0.75. The products that are available that are Fairtrade are: Chocolate, Fresh Fruits like Bananas, Mangoes and Pineapples, Coffee, Biscuits, Sweets, Alcohol, Honey and Teas. These are just a small amount of goods that are Fairtrade and there are many more. You can get these items at Major Food Stores like Waitrose, Sainsbury’s and Morrison’s. What is Fairtrade ? The benefits for the Farmers and their communities For an item to be deemed Fairtrade it has to meet a number of conditions : Ensure a guaranteed Fairtrade minimum price which is agreed with producers. Enable pre-financing for producers who require it Emphasize the idea of partnership between trade partners. These are the main standards but there are many more. By Harry Slack 9W Case Study of a named farm and farmer What products are available form Fairtrade and were you can get them It provides a living wage, that is a wage high enough to provide the basics in that community. Market price for products is always guaranteed...
Words: 327 - Pages: 2
...and the people on it. The organization believes “that everyone wants to do what’s right,”(Why Fair Trade) so they help those who are short-changed, focusing on their impact on certain aspects of the world; benefits to the economy, income sustainability, empowerment, individual and community well-being, and environmental stewardship. “Fairtrade as a certification is much more than merely an environmental certification, it is the only and best ethical and social certification that really ensures social and environmental, ethical and economic impact, and therefore human impact.” (Calderon) Fairtrade is gradually empowering communities to organize into cooperatives and improve their...
Words: 993 - Pages: 4
...Introduction Nearly 80% of the cut flowers we buy in the UK are imported from the Netherlands, Colombia and Kenya. The world's largest flower-farming nations are the Netherlands, Colombia, Kenya and Israel and they are main exporters to the UK. For years, the flower industry suffers from social and environmental problems. Environmental issues A lot of people do not concern so much about what pesticides are used to grow flowers. According to a Guardian report (Siegle, 2012), 12 different pesticides are used to help flowers grow in Columbia. Furthermore, some flower farmers use toxic pesticides which are banned in industrialized nations in Ethiopia. Moreover, the issues over the carbon foot print have been increased as the use of air-freighted flowers increased (Siegle, 2006). With issues over pesticides and carbon foot print, water shortage, impacts of greenhouses on landscape, and packaging issues were also being associated with the cut flower industry. Social issues Besides the environmental problems, social issues such as low wages, health and safety issues and labour rights are also being associated with the cut flower industry. In Colombia, flower farmers are exposed to systematic labour abuses and toxic chemicals exposure remains an important concern among farmers. Health issues persist as farmers are forced to work double shifts to meet consumers’ demand with depressing labor rights. The flower industry is comprised of between 65-75 percent of women workers, women’s...
Words: 843 - Pages: 4
...Secondly, due to improved relationships with mills and traders and investment of Fairtrade Premium payments into technical programmes, many Fairtrade producer groups have been able to improve their productivity, increasing both their incomes and their competitiveness in the global market. As the Fairtrade market has grown, there are new opportunities for producers in developing countries to access European and other developed country markets. It also promotes better environmental management. Being part of this Fairtrade system means that smallholder sugar cane farmers are linked into a global movement that has their interests at heart. Additionally, with poverty so pervasive amongst sugar producing communities, the use of premiums to create direct social benefit is a key impact of Fairtrade. Finally, Fairtrade can provide the information, commercial partnerships and financial means to allow producers to move themselves ‘up the value chain’. Case study – Manduvira Co-operative, Paraguay Manduvira is located in the remote and isolated district of Arroyos y Esteros in Paraguay. The co-operative was founded in 1975 and has 1,500 members and 27 employees and exports Fairtrade certified organic sugar to 18 countries through the Fairtrade market. As an organic producer, it receives $80 per tonne of sugar and each year half of the premium is given to members in an equitable form while in the Fairtrade Assembly, members decide together how they will invest...
Words: 380 - Pages: 2
...1) Charakterystyka przedsiębiorstwa 1.1. Opis przedsiębiorstwa Konkurenci Globalni (Sprzedaż 2013) | W Polsce | | Mars | 17,640 USD (millions) | Ferrero | | Mondelez | 14,862 USD (millions) | Mondelez | | Nestlé | 11,760 USD (millions) | Stork | | | | Wedel | | | | Wawel | | Target Group * Young and cosmopolitan consumers * For those who understand lifestyle as a personal statement * Young trend-conscious consumers Marketing Objectives * World’s biggest manufacturer of premium chocolate products * Modern * Enticing * Sinfully delicious * Luxury & prestige * Easygoing lifestyle * Sensual experience * Unusual taste combinations * (e.g. Salted Caramel, Strawberry Cheesecake...) Quantitative * Market volume ca. 100 USD billion (only 2012 available) * Market growth saturated chocolate markets in Europe and North America * Group sales 2 883 CHF million (~ 3 459 EUR million) * Group profit 404 CHF million (~ 485 EUR million) * Share price (ISIN: CH0010570759) 46 288,- CHF Przewagi Konkurencyjne * Quality strategy * Unique selling proposition (USP) * Premium Quality * Brand image * Extensive advertising policy Pozycjonowanie - produkt Wysoka cena I jakość, bardzo premium, duża różnorodność smaków (od gorzkich do bardzo delikatnych czy nietypowych) Cena Na rynku konkurencja oligopolistyczna kilku dużych graczy: market...
Words: 1054 - Pages: 5
...Introduction Humanitarian supply chain refers to the network created through the flow of supplies, services, finances and information between donors, beneficiaries, suppliers and different units of humanitarian organizations for the purpose of providing physical aid to beneficiaries (Mentzer et al. 2001) . Due to changing nature of disasters and improving early warning systems, humanitarian supply chain is considered a mission critical application (MCA) supply chain because lives are involved. The cost of delay in responding to a disaster is costly and therefore less attention is paid to the financial implications as compared to the commercial supply chain and thus fast response becomes imperative. Logistics is central for effective and efficient humanitarian assistance to be provided and the operation of humanitarian supply chains has a massive impact on quality and speed of the assistance to be provided. In addition, logistics activities (from purchasing to the last-mile delivery of items) account for a very large share of the cost in a disaster relief operation. Positive improvement on humanitarian supply chain logistics has a great potential in delivering huge positive impact for people affected by disasters. Aim of Report The aim of this report is to critically assess the administration and delivery Humanitarian Supply Chain scenario (i.e. aid to victims of natural disaster by aid agencies around the world) and to look at challenges in using technologies in managing...
Words: 337 - Pages: 2
...The Ethical Dilemmas of FAIRTRADE The economic and moral struggles that accumulate between the fields and factories to the end user continue to play havoc in the day-to-day dilemmas of society. The following message is displayed on the “About” page of the Fair Trade Association of Australia & New Zealand’s website: “By choosing products carrying the FAIRTRADE Label, consumers can support farmers, their families and communities in receiving more stable and secure incomes, better working conditions, and enhanced investment in quality and local environmental sustainability.” Analyzing “Fair Trade” through the moral, social and economic lens can blur the lines of an organization’s corporate responsibilities. In the Nike Corporation scandal of child labor laws in the 1990’s, the public outcry was heard around the globe while the organization’s stock prices continued to soar as consumers lined up to purchase the products. Today, Nike stock prices tilters around $95 per share, which is a far cry from the $3 per share price in the early 90’s or the $32 per share in 1996 during the height of the scandal. You have to ask yourself, “Can a free enterprise society, required to share a profit with its shareholders, function within the guidelines of corporate social responsibility?” A high level review the Fair Trade program can be analyzed using the profits and corporate behavior of the Green Mountain Coffee Roasters (GMCR), INC. As noted in the article “When Is Fair Trade Not...
Words: 890 - Pages: 4
...Contents I. Introduction 3 II. Triple bottom line analysis 3 1. Profit 3 2. Planet 3 2.1 Environmental stewardship 3 2.2 Financial contribution to the planet safeguard. 3 3. People 4 3.1 Employee benefits 4 3.2 Empowering African women (gender balancing) 4 3.3 A new perspective on aids 4 III. Stakeholders analysis 5 1. Company analysis 5 1.1 Strengths 5 1.2 Weaknesses 5 1.3 Oliberte’s key internal stakeholders 5 2. Community analysis 6 2.1 The government of Ethiopia 6 2.2 Certifying bodies 6 3.1 Main customers 7 3.2 Mint footwear san Diego 7 4. Competitor analysis 7 4.1 Some competitors 7 4.2 TOMS 7 IV. Conclusion 7 V. References notes and Bibliography 8 ANALYZING OLIBERTE LIMITED’S SUSTAINABLE MARKETING I. Introduction Oliberte Limited is a Canada based B-corporation specialized in leather shoes manufacturing. The particularity of this company is that its shoes are entirely crafted in Africa with hormones free livestock material. The following essay is an analysis of Oliberte’s 3BL and stakeholders. II. Triple bottom line analysis 1. Profit Oliberte started its business in 2009 with a sales figure as high as 200 pairs of shoes. The sales increased up to 10,000 pairs in 2011 and 15,000 in 2012 with the launching of its own new factory in Addis Ababa. Though the company claims on its official website to have exceeded its sales projection, Mr Dehtiar the founder and president of Oliberte was expecting the 2012 sales to be between...
Words: 1779 - Pages: 8
...Is Fairtrade a form of sustainability marketing? Nowadays, Fairtrade is a new trend in the world’s market and become a powerful competitor toward mainstream brands. According to Belz and Peattie (2010, p29): “sustainability marketing may be defined as building and maintaining sustainable relationships with customers, the social environment and the natural environment.” Fairtrade is also author concept that it aims to provide fair price to farmer in developing country and help them to live better life. This essay considers 3 elements of sustainability marketing: social-ecological problems, sustainability marketing strategies and sustainability marketing mix. It argues that Fairtrade is a form of sustainability marketing. The rest of essay is organized as follows. The second paragraph explains what the elements of sustainability are. The third paragraph presents Fairtrade tends to solve social-ecological problems. The fourth paragraph discusses how Fairtrade makes sustainability marketing strategies. The fifth paragraph reports Fairtrade completes sustainability marketing mix. The sixth paragraph concludes. Belz and Peattie (2010, p29) consider that compared to transaction marketing sustainability marketing is a long-term market theory. They also maintain that sustainability marketing could be included in the macro economy. Belz and Peattie (2010, p29) believe that “It embraces the idea of sustainable development, which requires a change in the behaviour of virtually everyone...
Words: 1028 - Pages: 5
...Rationale for choosing ‘Fairtrade UK sales show 12% increase’ The decision to analyse this newspaper article ‘Fairtrade UK sales show 12% increase’ from the Financial Times is because it encourages further analysis of consumer behaviour and aids, understanding many of the concepts and models that are core to consumer behaviour. The article reports that consumers in the UK are increasingly purchasing Fair-trade products, citing a 12% rise in 2011 from 2010. Consumers are more prepared to spend their money to help ensure a better deal for foreign farmers and prevent their exploitation and their very motivation behind this demonstrates many of the core concepts of consumer behaviour. The article provides the background information that the overall market growth for grocery products stood at around 5% and suggests that this market growth isn’t sustainable and also suggests that consumers will continue to increase their purchases of Fair-trade products despite increasing financials hardship amongst UK consumers. The article invites analysis of how consumer’s desire for ethically sourced products is being tapped into by companies and what is motivating the purchase decisions of these consumers. It also offers an insight into the organic food products market, which has seen sales fall year on year for the last 3 years. This essay illustrates how by applying consumer behaviour theory to the facts reported in the article, understanding of the consumer is greatly improved. The essay...
Words: 1846 - Pages: 8
...What this actually means for consumers: FAIRTRADE and the Rainforest Alliance have different purposes and different methods to these aims. So, purchasing their product means that people supporting farmers and creators in dissimilar ways. Fairtrade and the Rainforest Alliance are reliable systems that work to a maintainable upcoming and endorsing to understanding the customer and worldwide ethics. Fairtrade and the Rainforest Alliance are members of ISEAL the worldwide connection to link the coffee sustainability standards. However, the key differences between the products that customers must be alert previously before they choose which one to support. ( http://fairtradewales.com/fairtrade-vs-the-rainforest-alliance) The Fairtrade classification is to make sure that exchange is fair and give power to the farmers. Also, Rainforest Alliance Certification emphases on farmers work organization also, they look at the economic and environment growing of the farmers. the Rainforest Alliance libeling sign for certifies shows that, “For example, a pack of 80 soft pack Tetley tea bags has a minimum of 50% RA certified tea. This means that the other 50% is not certified and does not support farms and plantations.” http://fairtradewales.com/fairtrade-vs-the-rainforest-alliance...
Words: 487 - Pages: 2
...Max Havelaar France www.maxhavelaarfrance.org The Fairtrade certification impact on small producers: Conclusions of the first studies, April 2009 Synthèse Max Havelaar France : Karine Laroche & Barbara Guittard. From studies carried out by : OREADE BRECHE (République Dominicaine : Conacado et Banelino ; Pérou : Cocla), AVSF (Equateur : Fapecafes ; Pérou : Apromalpi ; Bolivie : Coopératives des Yungas). Synthèse on the impact of Fairtrade Certification FLO PREAMBULE A reflective work around the impact of FTC (Fairtrade Certification)’s activities, on the main group of beneficiaries, has been initiated in 2005 by Max Havelaar France and its federation FLO. Indeed, the substantial work done until now around guarantee (referring to the guarantee of the means (standards, prices, etc.) and the direct results of those means (verified through certification, ie: whether volumes sold have been paid at the defined levels, to democratic organisations, etc.)) only gave an incomplete overview of the sustainable and substantial changes brought by the FTC to organisations and its members. The action taken of measuring the FTC’s impact is thus aiming at better understanding the mechanisms and the reality of the FTC’s impact, in order to 1/ being able to explain it and to have more solid information, and 2/ being able to improve its tools and interventions. Several studies have been carried out in parallel to the elaboration and to the improvement of a common methodological frame...
Words: 37371 - Pages: 150
...In this essay I will be examining the ethical concerns of the communities within a selected business of my choice. I will be examining Tesco ethical concerns of the community. Tesco is one of the largest supermarkets in the UK as they have a price value and quality food. Tesco has even branch out to other countries and now in 12 different countries around the world. The discussion begins with a critical analysis of how these ethical concerns affect local communities. These ethical concerns could be where Tesco produce their food or how they buy their product or who sources their food for Tesco. We must therefore acknowledge that one of the biggest concerns which many people feel in relation to the issue on how Tesco sources their products. It is increasingly the case that people buy products based on the distance that they have been transported. The amount of packaging they have and the place in which they originated. The influence of poverty has been strongly felt with the fair trade movement receiving considerable support, to the point where the majority of coffee is now fair trade certified at Tesco. All of these are ethical concerns within the different communities on how Tesco operates. Tesco need to address these issues of having more locally source food this is one of the main concerns of the communities. As it has more chance that it will have less of a carbon footprint and their for more chance that it will have of supporting local industries. Meaning reducing global...
Words: 540 - Pages: 3
...fiercely competitive global environment which is as a result of globalisation, population increment and development of new technologies. On the basis of food food supply chain’s dependency on these scarce resources, sustainability of food has to be adopted through various approaches – the conventional approach (freetraide food supply chain) and the alternative approach (fairtrade food supply chain). This report focuses on sustainability, challenges of sustainability, key reasons for sustainability, food supply chain sustainability theme as well as a critical examination, analysis and appraisal of the fairtrade food food supply chain as advocated by Fairtrade Foundation and Fairtrade International and the normal freetrade food food supply chain through a comparative analysis which is based on consultation of materials from Fairtrade Foundation, Fairtrade International as well as other secondary sources (such as textbooks, articles, journals and websites). The report concludes that freetrade is a better option to manage the partnership between producers and consumers within a food food supply chain. However, fairtrade could still flourish if its techniques and principles are exposed to a continuous external and internal scrutiny against the continuous movement of the forces of demand and supply which always shape the dynamic nature of the competitive market. Executive Summary i 1.0 Introduction 1 1.1 Aims and Objectives 3 1.2 Research Methodology 3 2.0 Sustainability...
Words: 8072 - Pages: 33
