What Does Fair Trade Mean?
WHAT DOES FAIR TRADE MEAN?
October is National Fair Trade month in the United States. While we all know it has importance and significance, if put to the test, we may not know exactly what Fair Trade means. What does it really mean for a product to be certified as Fair Trade? And what does it mean for a business to earn the opportunity to announce their Fair Trade practices?
Most of us know that choosing a fairly traded product is better than buying the alternative, but not as many people know what that purchase impact really means for the world and for people. Since at Blume Honey Water we chose a fairly-traded ingredient for our Citrus Vanilla (our vanilla is Fair Trade certified!) we want you to have awareness about the world of Fair Trade since we have grown to love what it means to be Fair Trade. With help from a Forbes article on Fair Trade, we present to you some important facts to take with you on your next shopping trip.
The Fair Trade movement officially began in the 1950's when Europeans and Americans traveling to different countries observed local artisans and farmers struggling to cover the cost of their businesses. Most of these travelers would purchase some of those products and return to Europe or the US to sell them for a higher price, then bring the profits directly back to the artisans and farmers.
But clearly that process can be open to exploitation, without anyone able to confirm if the profits really and truly went back to the workers. The answer to this dilemma came in the 1990's, when Fair Trade USA founder Paul Rice was working with coffee farmers in Nicaragua and wanted to get involved in creating standards that could govern the way Fair Trade was monitored across the globe. His tireless work served as the foundation for what we now know as Fair Trade Certification.
FAIR TRADE CERTIFICATION
The Fair Trade certification process is complex and rigorous, generally taking anywhere between 6-9 months for a producer to achieve Fair Trade Certified status. Once certified, the Fair Trade committee creates a Premium Fund bank account that houses where the money will go once earned. Typically it is a community project agreed upon by the Fair Trade committee leading the certification.
Different communities around the world have different needs for their investment. It could be used to give every employee a bicycle which for some is a life-changer. Bikes allow families to more quickly and more easily buy and transport food. Having a bike can transform whether children can attend school.
Forbes reporter Amy Shoenthal discovered that in one factory in Sri Lanka, workers chose to use their premium fund to build a nursery school right next to the factory. It was the first time children under five years old there had access to school. That school gave the parents more time with their children since the school was so close to where they worked.
Other groups have invested in things like:
health insurance
gasoline vouchers
health kits
sanitation kits
subsidized food at their own factory
resources for rebuilding homes after a devastating natural disaster
summer camps for employee’s children
blankets
donations to a nursing home
donations to an orphanage
monthly provision of sanitary pads
water filters
lunch boxes
more
Fair Trade USA is ensuring that factory, farm and fishery workers are treated ethically. Aside from certifications, there are a few ways to gauge whether or not a company is committed to ethically treating workers throughout their supply chain:
Product tags
Website callouts
Substantial partnerships that show due diligence
Choosing Fair Trade products is consciously choosing better for people and the planet. The working conditions are better for workers from Fair Trade Certified farms, factories and fisheries. Their health and education is better, their families are at a better advantage and the guarantee is that they are being paid a fair wage for their work and treated humanely.