Fair Trade

Tackling Poverty

and Empowering

Producers

Through Trade

What Is Fair Trade?What Is Fair Trade?

• Fair Trade is a global movement tackling poverty and empowering producers through trade

• Fair trade’s purpose is to create sustainable market opportunities for producers in developing countries

• Fair trade typically focuses on farmers, workers and artisans in developing countries who have been economically disadvantaged or marginalised by the conventional trading system

Why Fair Trade?Why Fair Trade?

• 1.4 billion people in 2005 living in extreme poverty

• The current global financial crisis – and the oil and food price crisis that preceded it – will have plunged 130 to 155 million people back in to extreme poverty by the end of 2009

• The number of chronically hungry people will climb to over 1 billion by the end of 2009

• Despite providing products consumed and traded in large volumes, many farmers and workers are locked in poverty due to systemic and structural factors beyond their control, e.g. price volatility, poor infrastructure

What Is Fairtrade Labelling?What Is Fairtrade Labelling?

• Fairtrade Labelling is a global network of non-government organisations pursuing fair trade through the certification and labelling of products

• The Fairtrade Label allows consumers to identify products that meet agreed environmental, labour and development standards and support poverty reduction

• The Fairtrade Labelling system is overseen by a standard setting body (FLO) and a certification body (FLO-CERT)

The Vision of Fairtrade The Vision of Fairtrade LabellingLabelling

The vision of Fairtrade is a world in which all producers can enjoy secure and sustainable livelihoods, fulfil their

potential and decide on their future

Fairtrade LabellingFairtrade Labelling

• Fairtrade Labelling provides farmers, workers and their communities with economic, social and environmental benefits for the Fairtrade Certified products they sell

• Fairtrade Standards define the rules of production and trading

• Certification of Fairtrade involves independent auditing from production to packaging of products ready for consumption to ensure standards are met

How Fairtrade Labelling How Fairtrade Labelling WorksWorks

• The Fairtrade Label tackles poverty through a small number of market based mechanisms:

• The Fairtrade Minimum Price

• The Fairtrade Premium

• Opportunities for pre-financing

• Long term contracts and trading relationships

• Access to export markets

• Organisation into democratic organisations

• And in some cases, an Organic Price Differential

Tackling Poverty Through Tackling Poverty Through Price Stability & SecurityPrice Stability & Security

Tackling Poverty Through Tackling Poverty Through Economic Benefits of TradeEconomic Benefits of Trade

Producers Tackling Poverty Producers Tackling Poverty for Themselvesfor Themselves

• Fairtrade facilitates a unique offer of a Fairtrade Minimum Price that provides enough for today and a Fairtrade Premium for investment in the future

• Producer organisations, through Fairtrade, can develop sustainable local businesses and work to improve the social, working and living conditions for their members, their families, and their surrounding communities

Pay us a fair price for our coffee, and we will make poverty history for ourselves – Kimaro of

the Kilimanjaro Native Co-operative Union

Tackling Poverty Through Tackling Poverty Through Trade: Case StudiesTrade: Case Studies

• 6 case studies demonstrating the different ways Fairtrade assists certified producers to tackle poverty:

• Case studies available from: www.fairtrade.com.au/Producersandimpacts

• While Fairtrade focuses on economic justice in trade, and the delivery of economic benefits as key enablers for development, Fairtrade has broad social, environmental and economic benefits

Tackling Poverty Through Tackling Poverty Through Trade: Costa RicaTrade: Costa Rica

Fairtrade at Work: A Safety Net for Coffee Farmers

Tackling Poverty Through Tackling Poverty Through Trade: EthiopiaTrade: Ethiopia

Fairtrade at Work: Schools from Fairtrade

Tackling Poverty Through Tackling Poverty Through Trade: East TimorTrade: East Timor

Fairtrade at Work: Fairtrade and Healthcare

Tackling Poverty Through Tackling Poverty Through Trade: PNGTrade: PNG

Fairtrade at Work: Fairtrade and Infrastructure Development

Tackling Poverty Through Tackling Poverty Through Trade: PeruTrade: Peru

Fairtrade at Work: Cafe Feminino Empowering Women

Tackling Poverty Through Tackling Poverty Through Trade: TanzaniaTrade: Tanzania

Fairtrade at Work: Increasing the Communities Income Earning Opportunities

Fairtrade Labelling in Fairtrade Labelling in AustraliaAustralia

• Growing the market for Fairtrade Certified products in Australia is particularly relevant to Asia-Pacific producers

• Many regional economies rely heavily on agricultural commodity exports to support their fragile economies

• Significant proportion of the global poor live in the Asia-Pacific region

• The Asia-Pacific has been historically under-represented in the Fairtrade market and movement – Australia is in a position to change that, through outreach, market access, and coordination of capacity building

Fairtrade Labelling in the Fairtrade Labelling in the Asia-PacificAsia-Pacific

Increase in the Number of Fairtrade Certified Producers and Fairtrade Applicants in the Asia-Pacific Region for the Period 2004-2008

Fairtrade Labelling in the Fairtrade Labelling in the Asia-PacificAsia-Pacific

Tackling Poverty Through Tackling Poverty Through TradeTrade

• Fairtrade is unique in tackling poverty through its certification and labelling system

• Fairtrade Labelling in Australia has established a platform where market growth here will further enable producers, particularly in our region, to tackle poverty in their own communities through ensuring they are paid a fair price for today and receive additional funds to invest in tomorrow

• To read the full Tackling Poverty Through Trade report, the associated case studies, and for more on how the Fairtrade Certification system works, go to www.fairtrade.com.au/Producersandimpacts