Making the Case for Fair Trade.

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Alan Sutton
5 years ago
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1 Making the Case for Fair Trade

2 Overview What is Fair Trade? Fair Trade Principles Looking at Coffee Fair Trade vs. Conventional Trade Fair Trade Labels What is the CRS Fair Trade Program? How to get involved

3 Fair Trade Trivia 1. What is the second largest traded commodity behind oil? 2. The US typically spends how much each year on coffee? On chocolate? 3. Approximately how many beans does an average coffee plant produce a year? 4. Roughly how many beans are needed to produce a single pound of roasted coffee? 5. Chocolate is made from cocoa (Cacao). Cacao is A) a root, B) a bean, C) a Willy Wonka invention. 6. What are the world s top 5 cocoa-producing countries?

4 the Fair Trade Model A JUST ALTERNATIVE Fair Trade is a trading partnership based on dialogue, transparency and respect that seeks to restore greater equity in international trade.

5 Fair Trade Principles Fair pricing Direct purchasing from democratic organizations Social Premium Access to credit Environmental responsibility Long-term commitment

6 Fair pricing $1.35 per pound for conventional coffee $1.55 per pound for certified organic

7 Direct purchasing Democratically run cooperatives Farmer-owned and operated Community development

8 Education Potable Water Health Social Premium

9 Long-term commitment It s about relationships!

10 Access to Credit Farmers have access to credit, when it s most needed.

11 Environmental responsibility Financial incentives Technical assistance

12 Looking at Coffee Specialty coffee market: growing 20% per year 50,000 coffee shops by 2010 U.S. coffee market: $19 billion per year

13 U.S. $/lb. The coffee price crisis $2.00 $1.80 $1.60 $1.40 Composite Coffee Prices (May October 2001) $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00

14 The REAL coffee CRISIS WHERE DOES YOUR COFFEE DOLLAR GO? You pay: $1.50 The farmer gets: < 2

15 A Pound of coffee THE CONVENTIONAL WAY Your favorite retailer: $10 or more Coffee company Roaster Importer Exporter Miller Buyer Farmer: $0.30 or less

16 A Pound of coffee THE FAIR TRADE WAY CRS Fair Trade partner: $7 or less Coffee company Roaster Farmer: $1 or more

17 Big Fincas in Guatemala

18 Guatemala: Finca San Jeronimo

19 Nicaragua, Las Nubes Cooperative

20 Dominican Rep., CONACADO Cooperative

21 Alternative trade marketplace Handcrafts Chocolate Tea Cocoa Bananas Mangoes Wine Tee shirts etc.

22 FAIR TRADE CONVENTIONAL TRADE Technical assistance and training. Corporate investment in a community limited skills for business or corporate philanthropy Social premium Environmental concerns Profit is the overriding concern Committed relationship between producers and fair trade companies. Supply chain seeks out lowest cost though exploitative middlemen Advance credit Consumer education and advocacy leads to socially responsible business innovations Payment is received at time of shipment or typically within days Marketing is directed at increasing profitability

23 Fair Trade Labels Fair Trade Standards

24 Catholic Relief Services (CRS) Relief and Development agency of the U.S. Catholic community Works in 100 countries around the world Response based on need Partners with local organizations Solidarity will transform the world

25 CRS Fair Trade Program PROMOTE Fair Trade as a just alternative to conventional trade CONNECT consumers with producers through Fair Trade partners ADVOCATE for pro-poor trade policies

26 CRS Fair Trade Program WORKING THROUGH PARTNERSHIP CRS partners with Fair Trade companies CRS delivers direct service, such as education, to beneficiaries CRS Fair Trade Fund

27 CRS Fair Trade Products & Regional Parters Crafts Coffee Chocolate SERV Dean s Beans Coffee, Tea, Etc. Equal Exchange Divine Chocolate Equal Exchange

28 CRS Fair Trade FUND Women of APECAFORM San Marcos, Guatemala Coffee roaster

29 What can YOU do?

30 Become a Fair Trader and Advocate for change! GET EDUCATED: Join Fair Trade Network Join the CRS Legislative Network GET INVOLVED: Buy Fair Trade Raise your voice, create alternatives

31 The economy should serve people, and not the other way around. Economic Justice for All

CLAC LATIN AMERICAN AND THE CARIBBEAN NETWORK OF FAIR TRADE SMALL-SCALE PRODUCERS AND WORKERS

CLAC LATIN AMERICAN AND THE CARIBBEAN NETWORK OF FAIR TRADE SMALL-SCALE PRODUCERS AND WORKERS WHAT IS CLAC? The Latin American and Caribbean Network of Fair Trade Small Producers and Workers (CLAC) co-owns