What is Fair Trade? Global Geography 12 Seminar Presentation Ms. Crews

Some Key Terms: Subsistence farming - farming to provide food directly for the farmer’s table, possibly with some surplus to sell Subsistence farming - farming to provide food directly for the farmer’s table, possibly with some surplus to sell Cash crop – an agricultural product that is not consumed by the farmer, but sold for money Cash crop – an agricultural product that is not consumed by the farmer, but sold for money

Fair Trade is: A trade –based effort to create sustainable development, A trade –based effort to create sustainable development, A strategy to reduce poverty and improve the standard of living for farmers, and A strategy to reduce poverty and improve the standard of living for farmers, and A movement for social justice (correcting unfair conditions that lead to poverty and exploitation) A movement for social justice (correcting unfair conditions that lead to poverty and exploitation)

Conventional (Free Market) Trade Companies seek out the lowest price for labour and raw materials around the world. They find the poorest farmers who are most desperate and offer the lowest price they can. Companies seek out the lowest price for labour and raw materials around the world. They find the poorest farmers who are most desperate and offer the lowest price they can.

Conventional (Free Market) Trade Companies have limited involvement in farming communities except at the time of harvest (purchase). Companies have limited involvement in farming communities except at the time of harvest (purchase). Loans to farmers are made to improve or increase production, but at high rates of interest. Loans to farmers are made to improve or increase production, but at high rates of interest.

Conventional (Free Market) Trade Supply and demand: Local prices do not reflect local conditions. If the crop can be obtained more cheaply elsewhere, the “market price” is the lowest price, unless demand exceeds the supply. Local prices do not reflect local conditions. If the crop can be obtained more cheaply elsewhere, the “market price” is the lowest price, unless demand exceeds the supply. If cash crops can be sold, more farmers will try to produce that crop. If cash crops can be sold, more farmers will try to produce that crop. As more of the product becomes available, prices fall. As more of the product becomes available, prices fall.

Conventional Trade: Farmers may be desperate for cash and have no resources to find other ways to sell their products. Farmers may be desperate for cash and have no resources to find other ways to sell their products. Farmers do not have the education to improve production safely. Misuse of chemical fertilizers, pesticides or poor farming techniques may damage the environment, health of workers and future production of the farm. Farmers do not have the education to improve production safely. Misuse of chemical fertilizers, pesticides or poor farming techniques may damage the environment, health of workers and future production of the farm.

Fair Trade Labeling Organization (FLO) International This international organization sets the standards that farmers and companies must meet to use the Fair Trade label. This international organization sets the standards that farmers and companies must meet to use the Fair Trade label. Farms and companies are inspected and monitored to be sure standards are met. Farms and companies are inspected and monitored to be sure standards are met.

Certification for Farmers Farmers (producers) must demonstrate a number of criteria including: Safe and fair labour standards (for women and children too) Safe and fair labour standards (for women and children too) sustainable farming methods sustainable farming methods democratic participation in decision- making democratic participation in decision- making

Certification for Companies Companies that buy products must meet standards such as minimum prices that must be paid to producers minimum prices that must be paid to producers longer-term contracts longer-term contracts provide up to 60% of the value in advance provide up to 60% of the value in advance

Fair Trade Labels

“About Fair Trade” Transfair Canada. February 9, trade. “About Fair Trade” Transfair Canada. February 9, trade. “An Alternative Economic Model” CBC News. February 9, “An Alternative Economic Model” CBC News. February 9, “What is Fair Trade?”. Transfair Canada. February 9, fairtrade/what-fair-trade. “What is Fair Trade?”. Transfair Canada. February 9, fairtrade/what-fair-trade. fairtrade/what-fair-tradehttp://transfair.ca/en/about- fairtrade/what-fair-trade "The Cocoa Tree". The Chocolate Manufacturers Association. February 9, "The Cocoa Tree". The Chocolate Manufacturers Association. February 9,