With the onset of crisp nights and vivid foliage, October signals a change of season as well as being designated Fair Trade Month by TransFair USA, the U.S. certifying agency for Fair Trade Certified™ products, along with other grassroots coalitions, retailers, and other product licensees to promote awareness of Fair Trade. For many of us, Fair Trade appears to be a bandwagon we don’t know much about. Often, our initial introduction to Fair Trade happens at a coffee shop or in the grocery store, and it’s within the agricultural industry that Fair Trade practices have become very successful. So successful, that according to Fairtrade Labeling Organizations International, consumers spent about $2.2 billion on Fair Trade Certified products in 2006, a whopping 42% increase over 2005.
But still, people are confused on the difference between Fair Trade and free trade, assuming that Fair Trade is more of a marketing gimmick than anything else. Briefly, free trade is an age-old business model that in simplest terms states “I’ll buy your stuff, but I want it cheap, so I can sell at a profit.” Free trade allows the flow of products and services between people and territories. Free trade is profit based for both sides dealing in it and often does not consider consequences to people or the environment.
Fair Trade, a social movement, began in the 1940’s through religious organizations and non-government organizations (NGO’s) supporting local craftsman in order for them to buy food, shelter and other necessities of life through craft fairs and church bazaars. Where free trade has faltered is in their effort to make trade, and hence money, countries undermine the very resources that make them profitable, namely the people and the environment. Wages are low, healthcare benefits often non-existent, as well as natural resources are depleted. The result is a poorer population dependent upon the government and an environment that once provided, now either poisoning the population or unable to provide for it.
Fair Trade provides an individual, business, town, or a country, a triple bottom line. The triple bottom line is that which affects people, the planet, and profit. By providing for sustainability in natural resources as well as the workforce, the triple bottom line demonstrates a commitment to social responsibility. The artisan uses materials that are either recycled or come from sustainable sources like certified wood under stewardship programs. The farmer grows crops without the use of harsh chemicals and pesticides and utilizes methods to increase crop production and vitality without damage to the environment. Both the artisan and the farmer are paid a “living wage” which is an hourly wage that allows the individual to afford a certain standard of living to include housing, food, health care and more. The products from both the artisan and the farmer are sold without the middleman, direct to the retailer, thus cutting costs from the final product to the consumer. So, in effect, the cost differentiation of a Fair Trade item from one that is not Fair Trade is not significant. The final determination of price is based on the quality of the product. Fair Trade coffee tastes better not because it is Fair Trade Certified, but because it is better, from the bush to the grinder, without all the processing and handling that normally, not only affects price, but taste and quality.
As consumer awareness increases, businesses are looking to include Fair Trade products in their catalog, from handcrafts to food items. Several towns in the U.S. have become Fair Trade towns. This past May, the Portsmouth Fair Trade Coalition was founded to build support for Fair Trade products in New Hampshire. Run entirely on a volunteer basis and working in tandem with local community groups, businesses, and Fair Trade regulatory organizations, the PFTC hosted has hosted a Fair Trade World Craft Festival in downtown Portsmouth this summer as well as screenings of the documentary, “Black Gold” in order to encourage increased participation of Fair Trade practices. Currently, the PFTC is working to introduce Fair Trade classes into schools’ curricula. For more information on the Portsmouth Fair Trade Coalition, email info@fairtradeportsmouth.org.
Already, a number of businesses are carrying Fair Trade products. And several new Fair Trade businesses have made Portsmouth their home base. Businesses carrying Fair Trade products in Portsmouth include but aren’t limited to; Water Money, Mamacuna Traders, White Heron Tea, Ceres Street Bakery, Philbrick’s Fresh Market, Portsmouth Health Foods, Victoria’s Og Juice Bar and Caffe Killim. So, as you shop around Portsmouth during the month of October, forget saying “trick or treat,” and instead ask if they carry Fair Trade products. You just might find that the chocolate candy you receive this Halloween is Fair Trade!
But still, people are confused on the difference between Fair Trade and free trade, assuming that Fair Trade is more of a marketing gimmick than anything else. Briefly, free trade is an age-old business model that in simplest terms states “I’ll buy your stuff, but I want it cheap, so I can sell at a profit.” Free trade allows the flow of products and services between people and territories. Free trade is profit based for both sides dealing in it and often does not consider consequences to people or the environment.
Fair Trade, a social movement, began in the 1940’s through religious organizations and non-government organizations (NGO’s) supporting local craftsman in order for them to buy food, shelter and other necessities of life through craft fairs and church bazaars. Where free trade has faltered is in their effort to make trade, and hence money, countries undermine the very resources that make them profitable, namely the people and the environment. Wages are low, healthcare benefits often non-existent, as well as natural resources are depleted. The result is a poorer population dependent upon the government and an environment that once provided, now either poisoning the population or unable to provide for it.
Fair Trade provides an individual, business, town, or a country, a triple bottom line. The triple bottom line is that which affects people, the planet, and profit. By providing for sustainability in natural resources as well as the workforce, the triple bottom line demonstrates a commitment to social responsibility. The artisan uses materials that are either recycled or come from sustainable sources like certified wood under stewardship programs. The farmer grows crops without the use of harsh chemicals and pesticides and utilizes methods to increase crop production and vitality without damage to the environment. Both the artisan and the farmer are paid a “living wage” which is an hourly wage that allows the individual to afford a certain standard of living to include housing, food, health care and more. The products from both the artisan and the farmer are sold without the middleman, direct to the retailer, thus cutting costs from the final product to the consumer. So, in effect, the cost differentiation of a Fair Trade item from one that is not Fair Trade is not significant. The final determination of price is based on the quality of the product. Fair Trade coffee tastes better not because it is Fair Trade Certified, but because it is better, from the bush to the grinder, without all the processing and handling that normally, not only affects price, but taste and quality.
As consumer awareness increases, businesses are looking to include Fair Trade products in their catalog, from handcrafts to food items. Several towns in the U.S. have become Fair Trade towns. This past May, the Portsmouth Fair Trade Coalition was founded to build support for Fair Trade products in New Hampshire. Run entirely on a volunteer basis and working in tandem with local community groups, businesses, and Fair Trade regulatory organizations, the PFTC hosted has hosted a Fair Trade World Craft Festival in downtown Portsmouth this summer as well as screenings of the documentary, “Black Gold” in order to encourage increased participation of Fair Trade practices. Currently, the PFTC is working to introduce Fair Trade classes into schools’ curricula. For more information on the Portsmouth Fair Trade Coalition, email info@fairtradeportsmouth.org.
Already, a number of businesses are carrying Fair Trade products. And several new Fair Trade businesses have made Portsmouth their home base. Businesses carrying Fair Trade products in Portsmouth include but aren’t limited to; Water Money, Mamacuna Traders, White Heron Tea, Ceres Street Bakery, Philbrick’s Fresh Market, Portsmouth Health Foods, Victoria’s Og Juice Bar and Caffe Killim. So, as you shop around Portsmouth during the month of October, forget saying “trick or treat,” and instead ask if they carry Fair Trade products. You just might find that the chocolate candy you receive this Halloween is Fair Trade!
