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Flashcards in Fair Trade Deck (11):

What is fair trade?

• Better prices and decent working conditions
• Better life for farmers and workers in the developing world
• Enables farmers to improve their position and have more control over their lives


Examples of unfair trade

1) Child or forced labour
2) Poor working conditions
3) Low wage, not enough to cover the cost of production
4) Increased poverty for producers in the third world
5) Negative impact on the environment


What does "Fairtrade Foundation" do?

Get a fair and stable price for their products to help them support their families and invest in a better future


What can fair trade do [Effects and impacts]

1) Tackle poverty
2) Correct amount of work paid
3) Correct standard of living
4) Get money back in the communities
5) Better sustainability
6) Better prices for farmers


Example of Fair trade
*Divine Chocolate Company*

The farmers not only receive a fair price for their cocoa, they also own 45% of the company, which means they enjoy a share of the profits
*Local sustainability & investment in community
E.g. Sanitation, toiletry, clean water
∆ Strength democracy & boost productivity


Example of Fair trade

- Owned by its customers
To stock and promote Fairtrade products as part of their ethical food policy
- Own-brand Fairtrade product -Divine Milk Chocolate & Banana
Provide schooling for poor and orphaned children in India and Malawi
Over 200 different Fairtrade products
*Created @25 million fund to support the development of small businesses


Example of Fair trade

*Strong social and environmental impact
*Positive economic impact in long term
Concern for its employees and those farmers and workers within its supply chain
2 initiatives: Purple Goes Green & Cadbury Cocoa Partnership
Cutting carbon emission by 50%
25% reduction in packaging of seasonal ranges
60% of packaging to be biodegradable
Reduce the use of water


Cadbury Cocoa Partnership

To secure the economic, social and environmental sustainability and cocoa farmers communities
United Nations Development Programme & World Vision
-increase productivity and yield
-increase cocoa farmer's income
*Introduce new funding so rural business can start up and expand
Improve cocoa communities through education and building wells for clean water


Cadbury Ethical Trading policy

•Core labour rights
•Dignity at work
•Health and safety in the workplace
•Fair remuneration
•Diversity and respect for differences
• Opportunity for development


International Cocoa Initiative

-Works with the gov.
1) Remove child labour
2) Remove abuses of human rights in cocoa production to support cocoa growing communities
*Ensure long-term sustainability
*Guaranteed income & premium price for cocoa harvest


Retailer benefits from fair trade

1)Stand out from the competition - increased sales and profitability
2) Increase customer loyalty - increase customer retention which will reduce marketing costs
3) Better or high quality product leads to increased sales
4) Ethically sourced
5) Recruit staff and volunteer - shows you are a caring and ethical employer
6)Postitive public relations