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Fairtrade, The FAIRTRADE Mark and Fairtrade in The UK

Mark VarneyThe Fairtrade Foundation

The Fairtrade Foundation’s Vision

“Our vision is of a world in which justice and sustainable development are at the heart of trade structures and practices so that everyone, through their work, can

maintain a decent and dignified livelihood and develop their full potential.”

The Scale of World Poverty

1 billion people live on less than $1 a day Half the world (about 3 billion) live on less than $2 a day

So what does this actually mean for people in their daily lives ?

1.1 billion (1 in 6) have no access to clean drinking water and 2.6 billion ( nearly half the world ) lack basic sanitation (WHO)

Approx 790 million are chronically undernourished

30,000 children die every day due to poverty ( UNICEF )That is now about 10 million children a year under 5 yrs

Source: Oxfam 2007

Fairtrade – A Global System

Fairtrade Certification Structure

Fairtrade Labelling Organisation International (FLO)

FLO EV FLO - Cert

21 National Labelling Initiatives – “LI`s”

Fairtrade Foundation - UK

Max Havelaar - France

TransFair USA

TransFair Germany

Max Havelaar Switzerland

•Standards Unit (SU)•Producer Services & Relations (PSR)•Global Product Management (GPM)•Global Account Management (GAM)

•Separate legal entity •Certifies Producer groups •Registered supply chains•Annual auditing•ISO 65

Fairtrade Mark Ireland

0.00

40.00

80.00

120.00

160.00

200.00

240.00

280.00

320.00

US

cent

s/lb

Fairtrade

New York

Jan 1989 June 2007Jan 1996 Oct 1999

Frost damage

in Brazil 1994

Drought in Brazil 1999

Drought in Brazil

1997

Collapse of International Coffee Agreement 1989

NB Fairtrade price = Fairtrade minimum price of 121 cents/lb + 10 cents/lb premium*

When the New York price is 121 cents or above, the Fairtrade price = New York price + 10 cents

* Premium was increased from 5 cents/ lb on 1 J une 2007

The NY price is the daily closing price of the second position Coffee 'C ' futures contract at the NY Board of Trade © Fairtrade Foundation

The Arabica Coffee Market 1989-2007: Comparison of Fairtrade and New York Prices

October 2001

30-year low of 45 cents

March 2003

Fairtrade Standards

Social, Organisational and Gender Environmental

Economic

Tipping the Balance

1. Increasing Fairtrade’s impact on producers’ lives

2. Shifting public opinion and consumer lifestyles to make Fairtrade the norm

3. Expanding business engagement with Fairtrade from just compliance to deeper commitment

4. Growing Fairtrade’s share of key markets to propel sales to a new level

5. Scaling up and developing the Fairtrade Systems

Increasing Fairtrade’s impact on producers’ lives

Shifting public opinion and consumer lifestyles to make Fairtrade the norm

Expanding business engagement with Fairtrade

What commercial value can Fairtrade add?

• Contributes to brand equity and customer engagement

•A tangible and easily identified part of company CSR strategy

• Supports staff motivation and corporate pride

• Helps develop links with local communities

• Supports supply chain security and sustainability

Growing Fairtrade’s share of key markets

Scaling up and developing Fairtrade Systems

Tipping the Balance

1. Increasing Fairtrade’s impact on producers’ lives

2. Shifting public opinion and consumer lifestyles to make Fairtrade the norm

3. Expanding business engagement with Fairtrade from just compliance to deeper commitment

4. Growing Fairtrade’s share of key markets to propel sales to a new level

5. Scaling up and developing the Fairtrade Systems