How does FairTrade help sustainable development? Lesson objectives; To develop a greater understanding of sustainable development. To develop a greater knowledge of how FairTrade helps sustainable development. To be able to explain how FairTrade encourages sustainable development economically, socially and environmentally. (level 7) To be able to describe how FairTrade is a form of sustainable development. (Level 6) To be able to identify the advantages and disadvantages of FairTrade. (Level 5)

What your letter should include (success criteria): An explanation of what fair trade is An explanation of who buying fair trade makes the lives of farmers in LEDCs better (case study?) – Think about splitting benefits into economic, social and environmental. Results of your questionnaire about fair-trade (pick suitable questions and present these as graphs- these graphs should be annotated to help explain the results.) An analysis of your results to explain why fair trade should be stocked in these supermarkets or produced by the chocolate companies. What are the drawbacks of FairTrade (Economic, Social and Environmental)? Are there any other solutions you would like them to consider and why? A conclusion – what would you like the supermarket /chocolate company to do and why? Things to consider: Layout and presentation Graphs (with annotations) Using suitable language

What is FairTrade? Fairtrade is an alternative approach to trade and is based on a partnership between producers and consumers. Fairtrade offers producers a better deal, for example there is a fixed price for products like cocoa when the world market prices fall below a level that would sustain the farmer. Fairtrade also pays the Fairtrade premium which is an additonal sum of money to be spent on community projects. This allows them the opportunity to improve their lives and plan for their future. When a product carries the FAIRTRADE Mark it means the producers and traders have met Fairtrade Standards. http://www.fairtrade.org.uk/products/chocolate_products/default.aspx

What is sustainable development? Development that meets the needs of the present without jeopardising the ability of future generations to meet their own needs.

Advantages and disadvantages of FairTrade? Consumers have to pay more for FairTrade products. Fair trade gives farmers a fairer price for their goods. Producers have to use some of their profits to make sure that they are meeting FairTrade standards. This can mean they make little profit themselves. Farmers are trained in the best farming methods, which are good for the environment. The social premiums (profit from Fair Trade) go towards paying for schools and healthcare. Much of FairTrade chocolate available is sold by niche brands e.g. Divine and Green and Blacks that are expensive and do not have as wide a circulation as the Big Chocolate Companies. No child labour is allowed if farmers are part of FairTrade. Fair trade co-operatives (farms) are only allowed to sell 1/3 of their profit as FairTrade because there is a lack of demand. Explain how FairTrade is an example of sustainable development http://en.wikipedia.org/wiki/Fair_trade_debate

FairTrade case study: Divine http://www.divinechocolate.com/us/about-us Have a look at the Divine Chocolate website for a case study in

The chocolate companies CADBURY http://news.bbc.co.uk/2/hi/business/7923385.stm http://www.forumforthefuture.org/greenfutures/articles/fairtrade-gets-boost-cadbury-dairy-milk http://www.forumforthefuture.org/greenfutures/articles/making-chocolate-last HERSHEY http://www.fastcompany.com/1693089/hershey-gets-not-so-sweet-kiss-fair-trade-month

Solutions to problems in the chocolate trade Chocolate companies to buy cocoa direct from farmers. Chocolate companies should then be accountable for the working conditions on cocoa plantations that supply them – e.g. by inspecting the cocoa plantations they receive cocoa from. This is what FairTrade does, however, some companies may not want to go through the FairTrade system. Fix the world price for cocoa at a price that provides a living wage for farmers. Chocolate companies to help farmers e.g. to diversify so that they have the skills to grow new crops such as pineapples – chocolate companies have already played a role in this e.g. Cadbury. Chocolate companies to carry the fair trade logo so that a fixed and fair price is paid. Individuals to buy more fair-trade chocolate. Fair-trade gives farmers a guaranteed price for cocoa that provides a living wage as well as a fair-trade premium (extra amount of money that can be spent on community projects). Harkin-Engel Protocol, also known as the Cocoa Protocol, was signed into law on September 19, 2001. This states that the governments of cocoa producing states must inspect and report child labour on cocoa plantations. It includes the involvement of the cocoa companies. However, it does not require cocoa companies to post ‘slave free chocolate’ on their products as was originally suggested. The requirements of this protocol have not yet been fulfilled, however, certain directives have received funding – for example: “the aim to improve the livelihoods of cocoa growers by providing infrastructure, farmers organisations and educational facilities in cocoa producing communities”. Change world trade rules to employ a free trade system rather than a FairTrade system

Free Trade versus FairTrade http://smallbusiness.chron.com/trade-vs-fair-trade-1683.html

Criteria Level Description 5 You are able to describe how the trade system of the world works. You are able to describe how FairTrade works. You are able to describe the benefits and disadvantages of FairTrade. You use key terms appropriately and are able to structure you essay in an appropriate way. 6 You are able to fully describe and begin to explain how the trade system of the world works. You are able to fully describe and begin to explain how FairTrade works. You are able to fully describe and begin to explain the advantages and disadvantages of FairTrade for the different stakeholders involved economically, socially and environmentally. You recognise how FairTrade can lead to sustainable development. You are able to use key terms appropriately and can reach a plausible conclusion. 7 You are able to explain how the world trade system works and recognise how it is unfair for some stakeholders involved. You are able to explain how FairTrade works. You are able to explain the advantages and disadvantages of FairTrade for the different stakeholders involved economically, socially and environmentally. You are able to describe how FairTrade can lead to sustainable development. You primary sources of evidence (from questionnaire) to support your arguments. You present some of your findings graphically through maps and graphs. You are able to use key terms and reach a consistent conclusion.

Level 8+ 8+ You are able to explain and evaluate how the world trade system works and recognise how it is unfair for some stakeholders involved. You are able to explain how FairTrade works. You are able to analyse the advantages and disadvantages of FairTrade for the different stakeholders involved economically, socially and environmentally and you show an appreciation of the different views You are able to evaluate how FairTrade can lead to sustainable development. You use well researched case studies and primary sources of evidence (from questionnaire) to support your arguments. You present your findings graphically through maps and graphs. You are able to use key terms throughout and reach a consistent conclusion.