Nature + Role of Fairtrade

Question 1

What is Fairtrade?

Answer 1

• movement ensuring farmers + workers in poorer countries get fair wages, work under suitable conditions + receive fairer terms of trade

Question 2

What is the Fairtrade Foundation?

Answer 2

• a UK-based charity that certifies products produced by small scale operations (e.g. coffee + cocoa), which labels them to ensures social, eco + envi. standards have been met
• it also certifies certain products produced by plantations (e.g. bananas, tea + flowers), which ensures workers rights (e.g. safe working conditions) are protected

Question 3

How does the Fairtrade Foundation support farmers working in small scale operations?

Answer 3

• guarantees a min. price for their products, so that if market price exceeds min. price, farmers receive market price, + if market price drops below min. price, farmers will still receive min. price
  
  • this protects farmers from market price fluctuations, thus ensuring financial stability
• farmers also receive a Fairtrade Premium, which is an additional sum of money paid alongside Fairtrade minimum price, which can be invested in social, eco + envi. dev. projects to improve their businesses + communities

Question 4

Describe how Fairtrade supports farmers in Ghana.

Answer 4

• in 1993, a group of 45,000 cocoa farmers in Ghana formed an organisation called Kuapa Kokoo, which ensures farmers receive fair wages + aren’t exploited by middlemen
• in 2008, Kuapa Kokoo sold 4250 tonnes of cocoa to Fairtrade market, meaning if market price of cocoa fell to $1000 per tonne, farmers would still receive the min. Fairtrade price of $1600 per tonne
• if the market price inc above $1600 per tonne, farmers would receive the higher price in addition to the Fairtrade premium of $150 per tonne
• in 1998, Kuapa Kokoo co-founded the Fairtrade-certified chocolate company ‘Divine’, giving it an influence on how the organisation is run + a share of profits