Fair trade facts for kids
Fair trade is a special way of doing business that helps farmers and workers in developing countries. It makes sure they get fair prices for their products and work in good conditions. The idea is to create a more equal and sustainable world for everyone.
Fair trade focuses on products often sent from developing countries to richer ones. These include handicrafts, coffee, cocoa, wine, sugar, fruit, flowers, and gold.
Many groups work together to define what fair trade means. One important definition comes from FINE, a group of four international fair trade organizations. They say fair trade is about honest talks, openness, and respect in global trade. These groups, with help from shoppers, support producers and work to make international trade fairer.
Organizations like Fairtrade International and Fair Trade USA check and certify products. This means they make sure products meet fair trade rules. In 2008, Fairtrade International certified products worth about €3.4 billion.
Wales became the world's first Fair Trade Nation on June 6, 2008. Scotland followed in February 2013. The fair trade movement is very popular in the UK. There are over 500 Fairtrade towns, 118 universities, and thousands of churches and schools involved. In 2011, over 1.2 million farmers and workers in more than 60 countries were part of Fairtrade International's system. They received €65 million extra to improve their communities.
Some people have raised questions about fair trade. They wonder if it always helps farmers financially or improves working conditions. Some also suggest that fair trade might create new problems in certain markets. An idea called direct trade is sometimes offered as an alternative. It aims to connect buyers and sellers more directly, reducing costs and giving more money to producers.
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How Fair Trade Started
The first steps to sell fair trade products in richer countries began in the 1940s and 1950s. Religious groups and other organizations led these efforts. Ten Thousand Villages and SERRV International were among the first. They started fair trade supply chains in developing countries in 1946 and 1949.
Early Efforts and Handicrafts
At first, most fair trade products were handicrafts. These items, like jute goods or cross-stitch work, were often sold in churches or at special fairs. Buying them was a way to support a good cause.
The modern fair trade movement grew in Europe in the 1960s. Many saw it as a way to challenge unfair global trade practices. A famous slogan from that time was "Trade not Aid." This meant that fair trade was better than just giving help. The United Nations Conference on Trade and Development (UNCTAD) used this slogan in 1968. It highlighted the need for fair trade with developing countries.
In 1965, the British group Oxfam started "Helping-by-Selling." This program sold imported handicrafts in Oxfam stores and through catalogs. It was one of the first alternative trading organizations (ATOs).
The first special fair trade shop, called a worldshop, opened in the Netherlands in 1969. It sold only goods made under fair trade rules. These shops were run by volunteers and became very popular across Western Europe.
From Handicrafts to Farm Products
By the early 1980s, fair trade organizations faced new challenges. People were buying fewer handicrafts. Also, many fair trade supporters worried about how changes in farming rules affected small farmers. They saw that prices for many farm products were falling.
So, fair trade groups started focusing on agricultural products. These items, like tea and coffee, became very important for the movement's growth. They gave farmers a steady income. In 1992, handicrafts made up 80% of fair trade sales. By 2002, farm products like food made up 69% of sales.
Labels and Certifications
Fair trade sales really grew when special labels were introduced. Before this, fair trade products were mostly sold in small worldshops. It was not always easy for people to find them. To reach more shoppers, fair trade products needed to be sold in regular supermarkets.
The challenge was to sell in big stores while keeping people's trust in fair trade. A solution came in 1988 with Max Havelaar in the Netherlands. This was the first fair trade certification. It allowed products to be sold in mainstream stores. The label helped shoppers know that products truly helped producers.
Other countries soon created similar labeling groups. In 1997, many of these groups joined to form Fairtrade Labelling Organizations International. This group, now called Fairtrade International, sets fair trade rules and helps certify producers.
In 2002, Fairtrade International launched a single, international Fairtrade Certification Mark. This mark made it easier for people to spot fair trade products in stores. It is now used in over 50 countries for many products. These include coffee, tea, bananas, cocoa, cotton, and more.
Big Companies Join In
Large companies also started using fair trade products. In April 2000, Starbucks began selling fair trade coffee. By 2005, Starbucks promised to buy a lot more fair trade coffee. Other big companies like Sara Lee Corporation and Nestlé also started selling some fair trade products.
However, some people question if these big companies are truly committed to fair trade. For example, even with increased purchases, fair trade coffee might still be a small part of a company's total sales. This raises questions about how much real difference it makes for small farmers.
How Fair Trade Works
Many organizations work to promote fair trade. These include groups that certify products, groups that certify organizations, shops, and educational groups.
Most fair trade import organizations belong to national or international groups. These groups help coordinate and promote fair trade efforts.
Organizations That Help Fair Trade
Groups That Certify Products
- Fairtrade International, started in 1997, is a big group that sets fair trade rules. It licenses buyers and helps market the Fairtrade Certification Mark. This system is the largest and most recognized for fair trade labels. Fairtrade International also has a part called FLO-CERT. FLO-CERT checks and certifies producer organizations in over 50 countries. Only products from certain developing countries can be certified. For some products like coffee, only farmer cooperatives can get certified.
- Fair Trade USA is another independent group. It sets standards, certifies, and labels products. Its goal is to help farmers and workers earn a living and protect the environment. Started in 1998, Fair Trade USA works with over 1,000 brands and 1.3 million farmers and workers worldwide.
- Other certifiers include Ecocert (with its Fair for Life and Social and Fair Trade labels).
Groups That Certify Organizations
- World Fair Trade Organization (WFTO), started in 1989, is a global group for fair trade cooperatives, businesses, and networks. In 2004, WFTO launched its FTO Mark. This mark identifies entire organizations as fair trade, not just individual products.
Shops and Businesses That Support Fair Trade
- The European Fair Trade Association (EFTA), created in 1990, is a network of European groups that import products from disadvantaged producers. EFTA works to make fair trade importing more effective.
- The Fair Trade Federation (FTF), started in 1994, is a group of Canadian and American fair trade businesses. Its members promise to follow fair trade principles for all their business.
Worldshops
Worldshops are special stores that sell and promote fair trade products. They also often teach people about fair trade. These shops are usually non-profit and run by volunteers. Most worldshops are in Europe, but they exist in other parts of the world too. They aim to connect producers in developing countries directly with shoppers in richer countries. This helps ensure producers get a fair price.
Alternative Trading Organizations
An alternative trading organization (ATO) is a group or business focused on fair trade. Their main goal is to help reduce poverty in developing regions. They do this by creating a fair trade system that helps producers sell their goods in bigger markets. ATOs combine selling products with raising awareness about fair trade. Examples include Ten Thousand Villages and Equal Exchange.
ATOs believe in equal partnership and respect between producers and buyers. They try to make the journey from producer to shopper as short as possible. This helps shoppers understand the lives and cultures of the producers.
Students and Churches Helping Out
Student groups are increasingly promoting fair trade. Many groups in North America are part of United Students for Fair Trade or the Canadian Student Fair Trade Network.
Churches and religious groups have always been a big part of the fair trade movement. For example, Ten Thousand Villages is linked with the Mennonite Central Committee.
Universities can also become "Fair Trade Universities." This means they commit to using and selling fair trade products on campus. They also teach students about fair trade issues. The University of Wisconsin-Oshkosh became the first Fair Trade University in 2007. The University of California, San Diego followed in 2010.
A Fairtrade Town is a town or region that meets certain fair trade rules.
Fair Trade Products
Fair trade products are goods that have been certified by a fair trade organization. These organizations set international standards and support fair trade farmers. Most of the fair trade market (60%) is food products. These include coffee, tea, cocoa, honey, and bananas. Other fair trade items include crafts, textiles, and flowers.
Fair Trade Coffee
Coffee is the most well-known fair trade product. Most fair trade coffee is Coffea arabica, grown in high places. Fair trade markets focus on good quality coffee. This is because customers often buy it for its taste, not just its price. Coffee was chosen first because it's a very important product for many developing countries. Also, small farmers grow almost half of the world's coffee.
Where Coffee Comes From
The biggest sources of fair trade coffee are Uganda and Tanzania. Latin American countries like Guatemala and Costa Rica also produce a lot. In 1999, Germany, the Netherlands, Switzerland, and the United Kingdom were major buyers.
Helping Coffee Farmers
Fairtrade International has clear rules for coffee. Small farmers must be part of democratic cooperatives. Buyers and sellers should have long-term relationships. Buyers must pay at least a minimum fair trade price. If the market price is higher, they pay that. Buyers also pay an extra 20 cents (USD) per pound of coffee. This money is for community projects.
The current minimum Fair Trade price for high-quality Arabica coffee is $1.40 (USD) per pound. It's $1.70 (USD) per pound if the coffee is organic.
Starbucks started buying more fair trade coffee in 2001. This was after concerns about unfair labor practices on some farms. Other companies like Nestlé also followed. When companies don't use fair trade, a very small part of the money goes to the farmers. Fair trade aims to change this.
Growing Coffee Sustainably
Growing coffee can affect nature. In the past, some farms cut down trees and used chemicals. This harmed the environment. Fair trade certified coffee farms must follow sustainable practices. This means reducing chemical use, preventing soil erosion, and protecting forests. Many fair trade coffee farms use traditional methods, like growing coffee under shade trees. This helps protect local plants and animals. In the United States, 85% of fair trade certified coffee is also organic.
Coffee Companies
Here are some coffee companies that offer fair trade coffee:
- Anodyne Coffee Roasting Company
- Breve Coffee Company
- Cafedirect
- Counter Culture Coffee
- Equal Exchange
- GEPA
- Keurig
- Just Us!
- Peace Coffee
- Pura Vida Coffee
Fair Trade Cocoa
Many countries that export cocoa depend on it as their main product. Cocoa trees grow for a long time and don't need to be replanted often.
Where Cocoa Grows
Cocoa is farmed in warm, tropical areas. These include West Africa, Southeast Asia, and Latin America. Countries like Ghana and Côte d'Ivoire in Africa produce a lot of the world's cocoa. Indonesia and Malaysia are big producers in Southeast Asia.
Helping Cocoa Farmers
In the past, cocoa farmers in developing countries often received very low prices. This led to poverty. Fair trade tries to create a direct system to fix this. Most cocoa comes from small family farms in West Africa. These farmers often rely on middlemen to sell their products. Sometimes, these middlemen are unfair.
Farmers can join an Agricultural cooperative. These groups pay farmers a fair price for their cocoa. A main goal of fair trade is that farmers get a fair price. Some of this money also goes to community projects, like water wells. Cooperatives like Kuapa Kokoo in Ghana help farmers get fair deals.
Making Sure Cocoa is Grown Fairly
The Harkin–Engel Protocol, also called the Cocoa Protocol, is an international agreement. It aims to stop the worst forms of unfair child labor and forced labor in the cocoa industry. This agreement was made after a documentary showed problems in cocoa farming. Companies involved promised to work on this issue. They agreed to research labor practices, create action plans, and set up a foundation to help. By July 2005, the industry aimed to have standards to certify that cocoa was grown without unfair child labor.
Cocoa Companies
Here are some chocolate companies that use fair trade cocoa:
- Alter Eco (Ecocert, Fairtrade International)
- Ben & Jerry's (Fairtrade International)
- Cadbury
- Chocolove (Fair Trade USA)
- Divine Chocolate (Fairtrade International)
- Equal Exchange
- GEPA
- Green & Black's (Fairtrade International)
- Guittard Chocolate Company (Fair Trade USA)
- Theo Chocolate (Ecocert)
- Tony's Chocolonely (Fairtrade International)
Fair Trade Textiles
Fair trade textiles are mostly made from fair trade cotton. By 2015, nearly 75,000 cotton farmers in developing countries had fair trade certification. This helps them earn enough to live and improve their lives. Fair trade textiles are often grouped with crafts made by artisans.
Where Textiles are Made
India, Pakistan, and West Africa are major exporters of fair trade cotton. Many countries grow fair trade cotton. Textiles and clothing also come from places like Hong Kong and Thailand.
Fair Work in Textile Factories
Making textiles is different from farming. It often happens in factories. In some places, children are unfairly made to work. Fair trade cooperatives make sure that labor practices are fair and safe. They do not allow unfair child labor. Many fair trade textile producers are women in developing countries. They often balance making textiles with family duties and farm work. Cooperatives help these women have a voice and build stronger communities.
Clothing and Textile Companies
Here are some companies that use fair trade methods for clothing and textiles:
- American Apparel
- Association for Craft Producers
- Boll & Branch
- BeGood Clothing
- Champa Craft
- Cherie Amie
- The Ethical Olive
- Maggie's Organics
- MUD Jeans
- Patagonia
- Oliberté
Other Fair Trade Products
Fair trade efforts also include seafood. In 2014, Fair Trade USA started a program for fish. It makes sure fishermen follow rules that protect human rights and ensure safe working conditions. This helps manage ocean resources responsibly.
Fair trade flowers are also an important product. Kenya is a big producer of these.
There are also efforts to bring fair trade to luxury goods like gold and diamonds. For example, Fairtrade certified gold is used in jewelry. This ensures that the gold comes from mines that follow fair trade rules.
Impact of Fair Trade
Fair trade helps workers in developing countries. It is a global movement with different reasons for groups to form. The changes it brings also vary around the world.
A study of coffee farmers in Guatemala showed how fair trade helps. Many farmers understood fair trade principles. They knew about the extra money (social premium) and how their cooperative used it. Some farmers joined cooperatives to switch to organic farming or to raise money for community projects. They wanted more training, not just better prices.
Many farmers around the world don't know about fair trade. But when they learn, they see its benefits. Farmers in Peru, for example, said fair trade had a positive effect on their lives. They wanted shoppers to know that fair trade helps support their families and cooperatives.
Fair trade cooperatives also create a sense of teamwork. They encourage farmers to be more independent. When farmers feel they have control, it can be very empowering. Running a successful business helps them plan for the future.
The Social Premium
A key part of fair trade is the "social premium." This is extra money that buyers pay for fair trade goods. Producers or producer groups decide how to spend this money. They usually use it for social and economic development. Decisions are made democratically and openly within the groups.
Producers use the social premium in many ways. They often invest in things their communities needs, like schools, water projects, or environmental programs. They also reinvest in their farms and businesses. This includes buying equipment or training members in organic farming. Some groups use all the premium for themselves. Others invest in public goods, like paying teachers or improving roads.
For example, a coffee cooperative in Costa Rica, Coocafé, used its social premium to fund scholarships. This helped hundreds of children and young people go to school and university.
Fair Trade Around the World
Every year, sales of fair trade products grow significantly. In 2008, global sales were over $3.5 billion (USD). This shows that people continue to buy fair trade products even during tough economic times.
Fair Trade in Africa
Africa's labor market is becoming a big part of the global supply chain. Exports from countries like South Africa, Ghana, and Kenya were valued at $24 million (USD) in 2009. Between 2004 and 2006, the number of certified fair trade producer groups in Africa more than doubled. Kenya, Tanzania, and South Africa have many of these groups. Africa is known for fair trade tea, cocoa, flowers, and wine.
Fair Trade in Latin America
Studies in the early 2000s showed that fair trade improved the income, education, and health of coffee farmers in Latin America. Brazil, Nicaragua, Peru, and Guatemala are big coffee producers involved in fair trade.
Latin American countries also export many fair trade bananas. The Dominican Republic is the largest producer. Farmers there often form associations to own their land and meet regularly.
Fair Trade in Asia
The Asia Fair Trade Forum works to help fair trade organizations in Asia compete globally. In India, groups like Trade Alternative Reform Action (TARA) Projects helped craftsmen sell their goods. Fairtrade India was started in Bangalore in 2013.
Fair Trade in Australia
The Fair Trade Association of Australia and New Zealand (FTAANZ) supports fair trade. They are part of Fairtrade International and the World Fair Trade Organization. They help promote both certified fair trade products and other artisan crafts.
See also
In Spanish: Comercio justo para niños
