What is Fair Trade?

September 21st, 2009 Posted in Green Living & News

Fair trade: -noun Giving a small producer the ability to compete in a global market.

Planet Earth

But what does that mean exactly?

This article will clear up any questions you have by discussing:

Principles of Fair Trade

Fair trade was created to help impoverished people build farms and communities to improve their lifestyle. Human rights and child labor laws are strictly enforced.

TransFair USA helps growers ensure they receive fair pay for their goods and helps producers cover costs.

Fair trade groups are run by their members. Members also sell their own products to build business practices to become successful in the future.

Fair trade includes pre-harvest credits and premiums for certified organic products.

Products of Fair Trade

Fair trade sales around the world were estimated to be over $2.6 billion in 2006.

Fair trade products include:

  • Coffee
  • Vanilla
  • Chocolate
  • Wine
  • Clothing
  • Toys

beans

Direct Trade

Cutting out as many middle-men as possible, fair trade works on a chain of sales:

  • Producer
  • Co-op
  • Fair trade distributor
  • Store
  • Consumer

Using this method cuts out four unnecessary buyers, including exporters and distributors that would raise the price of the products.

Several major companies, such as Starbucks, sell fair trade products.

Where the Money Goes

Many producers and co-ops (cooperatives) will reinvest their earnings into both their business and their community.

For each fair trade product sold, the co-ops receive a set amount of money, called a social premium.

This money is invested in domestic improvements chosen by the members. These include health care facilities and schools.

sew

History of Fair Trade

Fair trade started in the 1940’s in the post-WWII era.

Edna Ruth Byler, a volunteer Mennonite, went to Puerto Rico to teach a sewing class.

She then took some of the lace her students made back to the U.S. to sell. Then, she sent the money back to the poverty-stricken women.

Her work later evolved into helping refugees rebuild after the war.

Her work grew into the group Ten Thousand Villages, which now supports artisans in over 35 countries.

Improving the World

Fair trade prohibits the use of harmful agrochemicals and pesticides. Farmers must use eco-friendly practices, like using EcoSMART’s Garden Insect Killer, to produce food that is safe for everyone.

TransFair encourages farmers to grow certified organic products. Nearly 85 percent of Fair Trade Certified(TM) coffee is organically grown.

Fair trade also encourages integrated crop management, which uses sustainable and economically efficient land to yield crop.




  1. 2 Comments | The First 1,000 to Comment (Starting 12/21/2009) Will Become EcoSMART Product Testers!

  2. By aaron on Aug 22, 2010

    So, ecoSMART practices fair business principles? I don’t think it actually said whether or not in this post, I just want to be clear… if so, I will run to the store today.

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  2. Oct 2, 2009: Buying fair trade, where to go and what to look for

2 Comments | The First 1,000 to Comment (Starting 12/21/2009) Will Become EcoSMART Product Testers! (details)