Tuesday, 2 November 2010

The benefits of Fairtrade and its success

The establishment of fairtrade initiatives were to support the poor farmers and their main policy was to pay minimum price to the fair-trade producers which were determined by the fairtrade standards. It was designed in a way which would ensure that even if the world markets fall below a sustainable level the price would act as a safety net for the farmers. Fairtrade not only deals with the poor producers but also has a great impact on the major companies in their business strategies. Many of the biggest chocolate companies worldwide, such as Cadbury and Verkade made considerable new commitments to fair-trade in recent years.[1] 
The Fairtrade Certification Mark (or, in North America, the Fair Trade Certified™ label), is the primary tool for linking consumers to the farmers and workers who benefit from Fairtrade. Its use on packaging indicates to consumers that the product they are purchasing has been produced in accordance with Fairtrade standard[2], for example the labelling on Starbucks Coffee cans confirms the above.
Fairtrade producer organizations have been certified in 59 developing countries, while Fairtrade certified products are sold in over 60 countries. The largest markets for Fairtrade certified products are countries where there is a Fairtrade Labelling Initiative or Associate Member.[3] According to them a unified structure, message and tone of voice will be critical for future success in the global market which will also prevent any global economic crisis.

The European economic and social committee[4] gave an opinion that among all the consumer nations the continent of Europe is the biggest market for the fair-trade products which claims to around 65% of the world market, for example, turnover in 2008 exceeded EUR 913 bn[5].

 Fairtrade has also been recognised by the European Parliament as a key tool for development, helping poor producers to relieve them from poverty. Fairtrade Towns campaign appears as success as continues to grow. By April 2009 there were over 650 Fairtrade villages, towns, cities, and regions worldwide. In October 2008, London became the largest Fairtrade City yet, joining the likes of Rome, San Francisco and Brussels. Fairtrade Towns must attain at least five core goals which increase Fairtrade awareness and availability by engaging local councils, businesses, schools, faith groups, workplaces and media. This has inspired spin-off campaigns such as Fairtrade Schools, Fairtrade Churches, Synagogues and Mosques, and Fairtrade in the workplace.[6]

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