what is fair trade?

What is Fair trade minimum price?

The Fairtrade minimum price defines the lowest possible price that a buyer of Fairtrade products must pay the producer. The minimum price is set based on a consultative process with Fairtrade producers and traders and guarantees that producers receive a price which covers the cost of sustainable production. When the market price is higher than the Fairtrade minimum price, the market price is payable. http://www.fairtrade.org.uk/what_is_fairtrade/faqs.aspx

 

How did Fair trade come about?

 

The Fair Trade concept has been around for 40 years but really built momentum in the 1980s.

1988 the first fair trade label was established in Denmark under Max Havelaar. His involvement was spurred by the coffee crisis which pushed growers into poverty. Max Havelaar initiated Fair Trade- charging the final customer more, cutting out middle man and providing farmers/growers with a fair wage.

1997 The Fair trade Label Organisation (FLO) established. One label for fair trade products and standards and conditions of fair trade were set.

FAIR TRADE “guarantees a better deal for Third World Producers”

2004- FLO divided into 2 entities

• FLO International- set standards and offers support to producers
• FLO Certification-inspects, certifies and audits producers

 

The history of Trade Aid

Founded by Richard and Vi Cottrell

Vi says the organisation was “green as grass” when it started out, but its aim was to increase the trade of handcrafts and commodities between New Zealand and developing countries.

1969 Trade aid began with an adventure.  Resettlement scheme for  Tibetans in Northern India

Began importing carpets to New Zealand to support the refugees. Ordered many carpets, hung them up in the art gallery and sold in 15 minutes. From there Trade aid was formed.

1972 Ten people meet to start up an importing company to trade with undeveloped countries & named it  Trade aid.

1973 Trade aid registered as a company  ‘Trade Aid Inc’. The first shop opens in Christchurch

!976 Trade Aid first imports Tea in bulk.

1980- Jute bag campaign initiated. To highlight the impact of plastic on Bangladesh jute producers. Sir Edmund Hillary is involved in raising awareness of Fair Trade & the jute bag campaign.

1986 Tea and coffee are marketed under Fair trade labels

1985 the first shipment of coffee from Nicaragua arrives

2002 import 8 tonnes of coffee beans

2005 Fair trade education resources  for schools are produced by Trade Aid

2003 Trade Aid shops are re branded.

2008 Trade aid 35 years old. Imports 580 tonnes of green coffee beans

 

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