Barney Smyth; Acting Senior Partnership Manager, Fairtrade Foundation. 1.45 pm.
Explored 2 Questions about Fairtrade.
What makes Fairtrade certification unique?
Why do Fairtrade producers, buyers and end consumers have faith in the Fairtrade logo.
- Minimum price for a product e.g. coffee is paid to producers which irons out the world market price peaks and troughs. Eliminating these price fluctuations means that producers can plan ahead, and Fairtrade buyers know that coffee has been grown on Fairtrade terms. Currently Fairtrade farmers are paid $1.40 per pound of coffee. The current world price is between $1.00 and $1.20. This minimum price guarantee is paid when coffee prices rise. The Fairtade price is always 20 cents above the global coffee price. This Fairtrade price covers the costs of sustainable and environmentally friendly production.
- Fairtrade farmers and producers receive an additional Fairtrade Premium on top of the selling price. This is usually another 1% of the value of the products. The producer cooperative workers, who know their own needs, can then decide to allocate this funding to:
– social projects
– improving community infrastructure
– Investing in a health centre
– buying in training and education
– building schools
– improving their businesses with new equipment
– Workers are thus empowered and can take control of their own livelihoods.
- The Fairtrade logo is a recognised kitemark and reflects uniform assessment by FLOCERT, the independent WFTO body that assesses farmers; producers; suppliers; traders; and wholesalers that rigorous standards have been met and that regular inspections are made to trace and prove product traceability.
Barney Smith presented some interesting Fairtrade Foundation Statistics –
Fairtrade has been going for over 25years
– 90% of people in the UK recognize the Fairtrade logo
– 87% of people in the UK trust the logo
– 76% of people in the UK care about the third party/independent certification process
– 76% of people in the UK care about Fairtrade producers and farmers
– 76% of people in the UK actively seek and choose Fairtrade products
Why Fairtrade makes such a big difference?
- Producers and farmers have a guaranteed income
- They have decent working conditions
- There is no child or forced labour
- Men and women receive equal pay, empowering both genders
- Fairtrade suppliers establish long-term working relationships with producer cooperatives
- There are social, economic, and environmental benefits of belonging to a Fairtrade cooperative
- The cost of belonging Fairtrade certified cooperative includes many other benefits such as technical and agricultural training for farmers and a chance to belong to network groups
Fairtrade Coffee Cooperative Statistics 2019
- There are 582 Fairtrade coffee cooperatives located in Latin America, Africa, and SE Asia
- 762,000 farmers growing and selling Fairtrade coffee.
- 86% of all Fairtrade coffee originates from Central and South America
- Fairtrade coffee production is worth in excess of 84 million Euros.
- 18% of Fairtrade coffee growers are women.
In a short accompanying video, one coffee grower stated that “Coffee is our life”, and more farmers need to sell coffee on Fairtrade terms where the environmental costs are factored in to the end price. The guaranteed price of Fairtrade coffee irons out the huge fluctuations in the market price.
“Climate change is a huge threat to livelihoods” but that farmers will have to adapt.
Notes Produced by:
Chairman, Wycombe Fairtrade