Fairtrade Explained
Fairtrade Explained
We all have a baseline understanding of Fairtrade – we see it in our shops, cafes and homes. It’s a mark to let you know that the produce you are eating, the coffee you are drinking or even the clothes you are wearing is sourced in an ethical and sustainable manner.
But what does it do, how does it do it and how can you, in an ever-growing age of marketing wizardry and trick, trust that what Fairtrade says is true?
In my opinion, the core elements of what Fairtrade does breaks down to three key points; environmental, financial, and social.
Environmental: - Climate Resilience – Fairtrade offers support to farmers with the fight against climate change by supporting climate resilience projects such as drought resistant crops as well as funding renewable energy and sustainable transport initiatives through the Fairtrade Premium - Sustainable Farming – This is encouraged heavily with particular importance placed upon reducing the use of certain agrochemicals whilst promoting organic farming practices and encouraging crop rotation to keep soil healthy for the future - Biodiversity Support – This is furthered by maintaining natural habitats and banning deforestation for new farms as well as the sustainable farming mentioned above - Pollution Control – Fairtrade standards protect soil and water from pollution and erosion through good working practices Financial: - Price Stability - This guarantees a minimum price to protect farmers from market volatility that could negatively impact them whilst still allowing them access to pricing well above that if the market price increases - Community Investment - A Fairtrade Premium is provided that can be spent on community or business improvements of the choosing of the farmers - Pre-Financing - In short, this is where money can be received in advance of delivery of goods to support cash flow and, ultimately, the production of goods which is hugely important when dealing with an ever-changing global economy, climate changes, investments and unforeseen challenges - Market Access - Small-scale farmers form co-operatives that can further their interests as well as allow them to gain access to these global markets (these co-operatives can pool resources too, meaning access to equipment and machinery that would be beyond their reach without it) - Training and Development – There is a real long-term position taken by Fairtrade here; it’s not just an exchange of goods for money but a real push to promote training and business development to improve productivity and profits for the farmers - Direct Trade - Reduces middlemen in the chain allowing for a more direct chain where they earn more; these small farms can club together in co-operatives and deal with the global market rather than attempting to sell domestically to other larger farmers who take their cut Social: - Safe Working Conditions – These are ensured for farmers and workers through prescriptive rules and standards - Equal Rights – These are promoted heavily by Fairtrade, particularly in regards to gender inequality, and ensured through prescriptive rules and standards too - Community Projects – Fairtrade supports and helps fund education, healthcare and clean water projects - Democratic Decision Making – The specific use of the Fairtrade Premium is not dictated to the farmers, instead they are given the freedom to decide and vote on where the Fairtrade Premium should be allocated - Anti-Exploitation - Fights against exploitation and child labour Now how does it do all the above? - Detailed Fairtrade Standards – Specific rules and regulations that must be adhered to - Training and Support – What good is a rigorous set of standards without a training and support system? Fairtrade provides education and resources to producers to ensure they can meet the standards and develop their farms and income - Fairtrade Premium – Additional income for community development - Partnerships with local cooperatives, NGOs and governments – This pushes for collaboration with other bodies who can also support these farmers and workers and have an even bigger impact than Fairtrade alone How do you know it is true? - Independent Certification – Farms and companies are checked by FLOCERT, a completely independent third-party organisation that runs audits on a regular basis - this is a major differentiator from informal certifications and loosely defined in-house certification claims - On-Farm Inspections and Audits - Inspections are done to ensure that they met standards and if not, they can lose their certification so there is a real reason to adhere to these standards beyond the moral aspect – guidance for non-conformities is provided - Transparency – Fairtrade publishes reports and impact studies online where you can see where money goes and how it helps communities Why is this so important? In my opinion, this is one of the major selling points and strengths of Fairtrade and why we so strongly believe in it – complete and independent third-party assurance that what the marketing says is true. In an era of greenwashing and loosely defined marketing terms, it is a massive bonus to have this (one to keep an eye out for is those using "Fair Trade", that space between the two words means it is not actually Fairtrade Certified and is a trick we see used far too often - if there is no logo, there is likely a reason for this!) So how can you get involved? - Everyday Purchasing – simply look out for the Fairtrade Mark; it’s the most well recognised ethical label in the world and is everywhere from supermarkets to cafes so you can easily support Fairtrade in your own day-to-day life - Fairtrade Certificate - If you wish to get an A3 Fairtrade Certificate from ourselves to proudly display your commitment to Fairtrade and ethical sourcing in your organisation, then you can get in touch with us, see the bottom of our website for more details click here. - Eco Churches - If you are already an Eco church, or interested in becoming one, then Fairtrade helps you meet their criteria regarding ethical sourcing – we have seen a lot of this in recent months and think they are a great concept
