2. What We’re Going to
Talk About Today…
Why do we need to change the way most things are
traded? What’s wrong with the traditional way of
trading?
What is Fairtrade?
How does Fair Trade Work?
Should You Support Fairtrade?
How Can You Support Fairtrade Producers Around
the World?
3. 50% of this wealth stays with 20% of the people
50% of this wealth is shared amongst 80% of the people
‘Rich’ 2 people
8.5 biscuits
2 biscuits for 1 person
•21% of the world’s population 6.5 biscuits for 1 person
•84% of the world’s wealth
10 biscuits – 10 people
‘Poor’ 8 people
1.5 biscuits
•79% of the world’s population 1.2 biscuits for 2 people
0.3 biscuits for 6 people
•16% of the world’s wealth
80% of this wealth stays with 20% of the people
20% of this wealth is shared amongst 80% of the people
4. Why Change the Way Most Countries
Are Traded Now?
Over 1 billion (that’s 1,000,000,000) of the world’s people
live on less than 66p a day.
Global farm incomes have declined dramatically in
recent years. BUT consumer prices (what you pay for
things in shops) and agribusiness’s1 profits have
increased.
The richest 20% of the world consumes over 75% of the
world’s resources.
1 Agribusiness takes crops or livestock and processes them for us to buy in shops
5. Why is Traditional Trading
a Problem?
It gives too much power to the
multinational corporations and
rich countries
It lowers the opportunities for
people who do not have a voice
(vulnerable) producers and
sometimes even damages the
environment.
It only thinks about short-term
profits, doesn’t protect producers A Safe Fairtrade Workshop in Cambodia
(photo: Jeff Goldman)
rights and is not a long term way
for the world to continue trading.
6. What is Fairtrade?
Fair Trade Works hard to:
Empower Communities
Allow farmers all over the
world to sell their products
through the world market and
not just to local buyers. (which
means they can make more
money for what they produce).
Assists Community
Development.
Increases people’s
independence and gives them a
way to work towards a better
life for their families and
Women Artisans, Rwanda Photo: SERRV communities.
7. What’s the Difference between Fair
Trade & Free (traditional) Trade then?
Free Trade Fair Trade
Main Goal To increase a nation’s economic growth To empower marginalized people and
improve the quality of their lives
Focuses On Trade rules (policies) between countries Focuses on trade among individuals and
businesses.
Primarily Helps Multinational corporations, powerful Vulnerable farmers, artisans and workers
business interests. in less industrialized countries.
Critics Say Punishing to marginalized people & the Interferes with the free market, inefficient,
environment, sacrifices long-term views. too small scale for impact.
Major Actions Poorer Countries lower their export taxes, Businesses offer producers favorable
labor and environment standards to create financing, long-term relationships,
markets with richer countries. minimum prices and higher labor and
environmental standards.
Producers Payments are Determined By Market and government policies A decent wage that can support producers
and their families and community
improvement costs
Supply chain Includes many organizations between Includes fewer parties (middlemen) and
the producers and consumers. is more direct.
Key Supporters World Trade Organization, World Fairtrade Labeling Organization, World
Bank, International Monetary Fund Fair Trade Organization
9. Fairtrade Principles
Support Safe & Empowering Working
conditions.
Ensure the Rights of Children
Ensure that Slave Labor is not used
to make products.
Cultivate Environmental Respect &
Good Practices.
Primitiva Yuto Reuamani, Organic Coffee
Promotes Community Development farmer in the San Fernando Co-op, Peru
Photo: Jessica Notargiacomo
Gives People a Proper Income for Their
Work
10. Fair Trade In Action!
FTC WINERY in South Africa:
When the FTC Winery joined the Fairtrade Organization:
Marginalized workers gained dignity and better treatment.
The workers earned stable incomes, electricity and
sanitation systems in their communities.
Supported their local primary school by building a
computer center.
11. Fair Trade in Action
Sahaj Women’s Cooperative
When they Joined the Fair Trade
Organization:
They trained tribal women’s groups
in vocational skills.
Helped local artisans (craft makers)
create products that consumers
wanted through business advice.
Increased their income by 400%!
The women gained social status
within their family and community.
12. Fair Trade in Action!
Kuapa Kokoo Farmers Union:
When they joined the Fair trade
movement they:
Funded schools for local girls.
Invested in corn mills and
palm oil extractors.
Trained villagers in soap
making and batik fabric design.
Shared their knowledge with a
Sierra Leone cocoa cooperative
to help them gain Fair Trade
Status.
13. Banana Split Game
We’re going to follow the journey of a banana that
is not under the FAIRTRADE system to find out
what happens to it before it reaches us. Let’s say
our bananas are coming to us from the Caribbean
Islands.
To play the game:
You will now be divided out in groups of 5 to
represent the various parties involved in getting
bananas to our tables.
14. Banana Split Game
You are going to break out into groups to represent:
1 Banana Worker
2 Plantation Owner
3 Shipper
4 Importer and ripener
5 Shop or supermarket
We can buy 1 banana for 30p.
You now need to decide how much of the 30p each
group should get.
15. Banana Split Game
Stay in your group and think about how much your
group should get out of the 30p. You have 5
minutes to come up with an amount. Don’t forget –
5 different groups need some of this 30p!
Pick one person from your group to represent you
for the rest of the game. This person will have to
speak on your groups behalf – so they can’t be shy!
16. Banana Split Game
Has the amount come to more than 30p?
We’re now going to have to try to negotiate with
each other to get our final price to 30p!
It’s time to work together between groups but also
to try to protect the interests of the group that you
belong to. WE HAVE TO GET THE FINAL PRICE
TO 30p TO FINISH!
18. Some Fair Trade Facts!
In 2008 5 million
(5,000,000) people
benefitted directly from
Fair Trade in over 60
Countries!
In 2008 Fair Trade Sales
exceeded £ 2.6 billion!
Ghanaian School Children. Photo Phil Grout
Global Fair Trade Sales
grew by 22% in 2008!
19. Challenges Facing Fair
Trade:
Should we try to reform (adjust) traditional free
trade or replace it completely?
How should fair prices and standards be
determined?
How do we deal with competing labels and make
sure that Fair Trade principles are enforced with
producers all over the world?
20. Cocoa in Ghana
Ghana depends on cocoa. After gold, it’s the country’s
economic mainstay, and Ghanaian cocoa is
considered to be some of the world’s finest. Most
Ghanaian cocoa is produced on small farms of 3-4
hectares.
21. Cocoa in Ghana
There are about two million cocoa farmers in Ghana.
There are a lot of links in the chain between the cocoa tree and
the chocolate bar and cocoa farmers, right at the beginning of
the chain, often benefit the least from the global cocoa
industry.
In Ghana, each farmer sells their cocoa to a private buying
company.
Then the private buying company then sells it on to Cocobod,
the Ghanaian government cocoa marketing board.
Next it is sold to international buyers, such as chocolate
manufacturers and commodity brokers, at a price set on
international commodity exchanges.
We’re going to take a look at the experiences of the cocoa
farmers, the challenges they face, and how Kuapa kokoo and
Fairtrade makes a difference.
22. What are the Problems
Ghanaian Farmers Face?
The average cocoa
farmer in Ghana makes
£160/year.
Most grow a lot of their
own food as well, but
they need money to
buy farm materials,
school books, school
fees, medicine, doctors
fees, transport and
clothes.
23. What are the Problems
Ghanaian Farmers Face?
Other problems include:
The price of cocoa on the world market
goes up and down regularly.
This means cocoa farmers have no long-
term security and sometimes can’t even
cover their farming costs.
Farmers are often paid by local cocoa
buyers using cheques or vouchers, which
the farmers then can’t cash or bounce.
Farmers are often underpaid by local
cocoa buyers using “fixed” scales, set to
show a lower reading than the actual
weight of their beans.
24. Kuapa Kokoo
Fair Trade
This Fair Trade Approved Farm is an association (or
cooperative) of more than 45,000 cocoa farmers in Ghana.
Kuapa Kokoo means “Good cocoa famer” in Twi.
What is a Co-operative?
A business that is owned and run democratically by the
farmers themselves.
Co-ops help farmers to work together, giving them strength
to compete in the market.
They also work to improve community services, such as
healthcare, education and access to clean water. It gives the
farmers the pride and dignity to create a better life.
25. What Products are
Fairtrade?
To Name Just A Few:
Honey from Zambia
Coffee from Peru
Teas from Uganda and India
Bananas from the Caribbean Islands
Cotton from India
Olive Oil from Palestine
26. So, Next Time You’re Out
Shopping…
Think about where the products you are buying are
coming from.
If there’s a choice in your local shop – choose fairly
traded products. IF there isn’t a choice, why not ask
the manager to stock Fairly traded products?
Some labels to look for are:
