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The Fairtrade Foundation

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Business Ethics, 97, p264.; Valkila, J.: 2009, ‘Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap?’ Ecological Economics, 68, 3018-3025.; Utting, K.: 2009, ‘Assessing the impact of Fair Trade Coffee: Towards an Integrative Framework’, Journal of Business Ethics, 86, p139.; Valkila, J.: 2009, ‘Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap?’ Ecological Economics, 68, 3022-3023.; Reed, D.: 2009, ‘What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective’, Journal of Business Ethics, 86, pp 12, 21.; Mohan, S. (2010). Fair Trade Without the Froth - a dispassionate economic analysis of 'Fair Trade'. London: Institute of Economic Affairs. (e.g. p67); Kohler, P. (2006), ‘The economics of Fair Trade: for whose benefit? An investigation into the limits of Fair Trade as a development tool and the risk of clean-washing’, HEI Working Papers 06–2007, Geneva: Economics Section, Graduate Institute of International Studies, October. Jacquiau, C. ( 2006 ). Les Coulisees du Commerce Équitable. Paris: Mille et Une Nuits.; Jacquiau, C. (2007). Max Havelaar ou les ambiguĂŻtĂ©s du commerce Ă©quitable: Pourquoi le Sud rue dans les brancards. Monde Diplomatique September.; Hamel, I.: 2006, ‘Fairtrade Firm Accused of Foul Play’, Swiss Info
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Study on Coffee’, Journal of Business Research, 59 (3), 322–330.; Berndt, C. E.: 2007, Is Fair Trade in coffee production fair and useful? Evidence from Costa Rica and Guatemala and implications for policy. Washington DC.: Mercatus 65 Policy Series, Policy Comment 11, Mercatus Centre, George Mason University.; Kohler, P. (2006), ‘The economics of Fair Trade: for whose benefit? An investigation into the limits of Fair Trade as a development tool and the risk of clean-washing’, HEI Working Papers 06–2007, Geneva: Economics Section, Graduate Institute of International Studies, October; Renard, M. C. and V. P. Grovas (2007), ‘Fair Trade coffee in Mexico: at the center of the debates’, ch. 9 in D. Murray, L. Raynolds and J. Wilkinson (eds), Fair Trade: The Challenges of Transforming Globalisation, London: Routledge. Pp 38-9; Riedel, C. P., F. M. Lopez, A. Widdows, A. Manji and M. Schneider (2005), ‘Impacts of Fair Trade: trade and market linkages’, Proceedings of the 18th International Farming Symposium, 31 October–3 November, Rome: Food and Agricultural Organisation,
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Journal of Business Ethics, 97:257-270 p. 264, Valkila, J. (2009). Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap? Ecological Economics, 68 3018-3025, pp. 3022-3; Reed, D. (2009). What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective. Journal of Business Ethics, 86:3-26, p. 12; Barrientos, S., Conroy, M. E., & Jones, E. (2007). Northern Social Movements and Fair Trade. In L. Raynolds, D. D. Murray, & J. Wilkinson, Fair Trade: The Challenges of Transforming Globalization (pp. 51–62). London and New York: Routledge. Quoted by Reed, D. (2009). What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective. Journal of Business Ethics, 86:3-26, p. 21.;de Janvry, A., McIntosh, C., & Sadoulet, E. (2010). Fair Trade and Free Entry: The Dissipation of Producer Benefits in a Disequilibrium Market. Retrieved December 24, 2012, from
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price, which is paid to producers, acts as a safety net for farmers at times when world markets fall below a sustainable level. An additional sum of money, called the Fairtrade Premium, is paid to farmers for products sold on Fairtrade terms. Some cooperatives can sell only a third of their output as Fairtrade, because of lack of market demand, and sell the rest at world prices. As the additional costs are incurred on all production, not just that sold as Fairtrade, cooperatives sometimes lose money on their Fairtrade membership. After the certification fees have been subtracted from the overall income earned on Fairtrade terms, the rest goes into a communal fund for workers and farmers to use as decided democratically within the farmers' organisation, or by a workers' committee on a plantation. The additional sum (Fairtrade Premium) is invested in ‘social projects’ such as clinics, women's groups and baseball pitches.
777:, J., Haaparanta, P., & Niemi, N. (2010). “Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers.” Journal of Business Ethics, 97:257-270. Kilian, B., Jones, C., Pratt, L., & Villalobos, A. (2006). “Is Sustainable Agriculture a Viable Strategy to Improve Farm Income in Central America? A Case Study on Coffee”. Journal of Business Research, 59(3), 322–330.Mendoza, R., & J. Bastiaensen, J. (2003). “Fair Trade and the Coffee Crisis in the Nicaraguan Segovias.” Small Enterprise Development, 14(2), 36–46. 745:
Study on Coffee’, Journal of Business Research, 59 (3), 322–330.; Berndt, C. E.: 2007, Is Fair Trade in coffee production fair and useful? Evidence from Costa Rica and Guatemala and implications for policy. Washington DC.: Mercatus 65 Policy Series, Policy Comment 11, Mercatus Centre, George Mason University.; Riedel, C. P., F. M. Lopez, A. Widdows, A. Manji and M. Schneider (2005), ‘Impacts of Fair Trade: trade and market linkages’, Proceedings of the 18th International Farming Symposium, 31 October–3 November, Rome: Food and Agricultural Organisation,
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handle their brand, for cost reasons. In the producing country Fairtrade is marketed only by Fairtrade certified cooperatives, however if there is not enough market demand, those products are sold onto the conventional market at market prices, marketed by Fairtrade certified cooperatives (as uncertified), by other cooperatives and by ordinary traders.
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8.; Reed, D.: 2009, ‘What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective’, Journal of Business Ethics, 86, p12.; Moore, G., Gibbon, J., & Slack, R.: 2006, ‘The mainstreaming of Fair Trade: a macromarketing perspective’, Journal of Strategic Marketing, 14, 329-352.
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23/12/2009.; Weitzman, H. (2006, August 9). ‘Fair’ coffee workers paid below minimum wage. Financial Times .; Weitzman, H. (2006, September 9). ‘'Ethical-coffee’ workers paid below legal minimum. Financial Times .; Weitzman, H.: 2006, The bitter cost of ‘Fair Trade’ coffee. Financial Times, September
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Weber, J. (2006). Rationing in the Fair Trade Coffee Market: Who enters and How? International colloquium on fair trade and sustainable development. Montreal: Ecole des Sciences de la Gestion, Universite du Quebec.; de Janvry, A., McIntosh, C., & Sadoulet, E. (2010). Fair Trade and Free Entry:The
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Critics therefore argue that farmers do not get any of the higher price under Fairtrade. Nor is there any evidence that they get higher prices as a result of better marketing: the cooperatives sometimes pay farmers a higher price than farmers do, sometimes less, but there is no evidence on which is
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The marketing system for Fairtrade and non-Fairtrade products is identical in the consuming countries, using mostly the same importing, packing, distributing and retailing firms. Some independent brands operate a virtual company, paying importers, packers and distributors and advertising agencies to
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farmingsystems; Bacon, C. (2005), ‘Confronting the coffee crisis: can Fair Trade, organic and speciality coffee reduce small-scale farmer vulnerability in northern Nicaragua?’, World Development, 33(3): 497–511; Mohan, S. (2010). Fair Trade Without the Froth - a dispassionate economic analysis of
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Other economists have argued that the existence of a fair trade marketing route benefits producers by raising producer prices generally, and there is evidence of such an effect at least among coffee producers; according to Podhorsky, the critics of the Fairtrade Foundation err by assuming that fair
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This mode of operation has led to criticism of the foundation. It is argued that, because retailers and cafes in the rich countries can sell Fairtrade coffee at any price they like, nearly all the extra price paid by consumers, 82% to 99%, is kept in the rich countries as increased profit. There is
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To become certified Fairtrade producers, the primary cooperative and its member farmers must operate to certain Fairtrade standards, set by the organisation. FLO-CERT, the for-profit side, handles producer certification, inspecting and certifying producer organisations in more than 50 countries in
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that aims to help disadvantaged producers in developing countries by tackling injustice in conventional trade, in particular by promoting and licensing the Fairtrade Mark, a guarantee that products retailed in the UK have been produced in accordance with internationally agreed Fairtrade standards.
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Raynolds, L. T.: 2009, ‘Mainstreaming Fair Trade Coffee: from Partnership to Traceability’, World Development, 37 (6) p1089.; Valkila, J., Haaparanta, P., & Niemi, N.: 2010, ‘Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers’, Journal of
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Mohan, S. (2010). Fair Trade Without the Froth - a dispassionate economic analysis of 'Fair Trade'. London: Institute of Economic Affairs.; Kilian, B., Jones, C., Pratt, L., & Villalobos, A.: 2006, ‘Is Sustainable Agriculture a Viable Strategy to Improve Farm Income in Central America? A Case
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Mohan, S. (2010). Fair Trade Without the Froth - a dispassionate economic analysis of 'Fair Trade'. London: Institute of Economic Affairs.; Kilian, B., Jones, C., Pratt, L., & Villalobos, A.: 2006, ‘Is Sustainable Agriculture a Viable Strategy to Improve Farm Income in Central America? A Case
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that demand minimum requirements to criteria such as pricing and terms of trade. Farmers pay FLOCERT a certification and inspection fee. Other administration costs and production costs are incurred to meet these standards. Commodity prices can drop when the world market is oversupplied. A minimum
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Raynolds, L. T. (2009). Mainstreaming Fair Trade Coffee: from Partnership to Traceability. World Development, 37 (6) 1083-1093, p. 1089; Valkila, J., Haaparanta, P., & Niemi, N. (2010). Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers.
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more common. Farmers do, however, incur extra costs in producing Fairtrade, so they certainly do lose money from Fairtrade membership in some cases. There is little or no research on the extra costs incurred, or the effect of Fairtrade membership on the income of farmers. However, research by
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farmingsystems.; Kohler, P. (2006), ‘The economics of Fair Trade: for whose benefit? An investigation into the limits of Fair Trade as a development tool and the risk of clean-washing’, HEI Working Papers 06–2007, Geneva: Economics Section, Graduate Institute of International Studies,
848:, C. E.: 2007, Is Fair Trade in coffee production fair and useful? Evidence from Costa Rica and Guatemala and implications for policy. Washington DC.: Mercatus 65 Policy Series, Policy Comment 11, Mercatus Centre, George Mason University. 1007:
Imhoff, S., Lee, A., 2007. Assessing the potential of Fair Trade for poverty reduction and conflict prevention: a case study of Bolivian coffee producers. Working Paper. Europainstitut, University of Basel.
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evidence that dishonest importers do not pay the full Fairtrade price, so an even smaller proportion reaches the Third World. Fairtrade operates a system whereby such allegations are reported to
859: 323:, Britain's largest women's organisation, and other organisations including Banana Link, Methodist Relief and Development Fund, Nicaragua Solidarity Campaign, People & Planet, SCIAF, 220:
The organisation is an independent non-profit organisation that licenses use of the Fairtrade Mark on products in the UK in accordance with internationally agreed Fairtrade standards.
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sales grew by 3% in 2014, generating an estimated ÂŁ7.9 million of Fairtrade premium. One in three bananas bought in the United Kingdom carries the Fairtrade label. Fairtrade sales of
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Podhorsky, A. (2015). A positive analysis of Fairtrade certification. Journal of Development Economics, 116, 169-185. doi:10.1016/j.jdeveco.2015.03.008
895:; Fairtrade International (FLO). (2011). Fairtrade Standard for Coffee for Small Producer Organizations version: 01.04.2011. Retrieved 1 15, 2013, from 1793: 1783: 960:
Griffiths, P., ‘Ethical objections to Fairtrade’ Journal of Business Ethics July 2011(DOI) 10.1007/s10551-011-0972-0 www.springerlink.com Accessed at
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Griffiths, P., ‘Ethical objections to Fairtrade’ Journal of Business Ethics July 2011(DOI) 10.1007/s10551-011-0972-0 www.springerlink.com Accessed at
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in UK supermarkets has grown extensively. In 2013, there were over 4000 Fairtrade products available in the UK with estimated sales of over ÂŁ1.7bn.
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Fairtrade International (FLO). (2011). Explanatory Document for the Fairtrade Standard for Small Producer Organizations. Retrieved 1 15, 2013, from
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Providing independent certification of the trade chain for products, and licensing use of the Fairtrade Mark on products as a consumer guarantee.
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there are many complaints of failure to enforce these standards, with Fairtrade cooperatives, importers and packers profiting by evading them.
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found that a "wide variety of qualitative studies have found positive effects of Fairtrade certification on the incomes of producers".
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The Fairtrade Foundation's current campaign aims to highlight the goal of achieving living incomes for cocoa farmers in West Africa.
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Davies, I.A. and A Crane, ‘Ethical Decision Making in Fair Trade Companies’, Journal of Business Ethics 45: 79–92, 2003. P84
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Ruben, R., Fort, R., Zuniga-Arias, G., 2009. Measuring the impact of fair trade on development. Dev. Pract. 19, 777–788.
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Cooperative traders and exporters can only sell produce on Fairtrade terms if they meet the set of standards set by
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Raising awareness of the need for fair trade in the public and the role of the Fairtrade Mark in making trade fair.
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http://www.fairtrade.net/fileadmin/user_upload/content/2009/standards/documents/2012-04-01_EN_SPO_Coffee.pdf
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The Fairtrade Foundation organises and coordinates promotional campaigns and events every year, such as the
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http://www.fairtrade.net/fileadmin/user_upload/content/2009/standards/documents/2012-07-11_SPO_EN.pdf
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amounted to an estimated retail value of ÂŁ1.68 billion, up from ÂŁ273 million in 2006. Volumes of
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Growing demand for Fairtrade products and supporting producers to sell to traders and retailers.
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Dissipation of Producer Benefits in a Disequilibrium Market. Retrieved December 24, 2012, from
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http://www.fairtrade.net/fileadmin/user_upload/content/2011-12-29_Explan_Doc_GTS_EN.pdf
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trade producers receive the world price for coffee, when that is in general not so.
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http://www.swissinfo.ch/eng/Fair_trade_firm_accused_of_foul_play.html?cid=5351232
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Charity promoting and licensing Fairtrade certification in the United Kingdom
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Working with partners to support producer organisations and their networks.
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T: +44 (0)20 7405 5942; F: +44 (0)20 7977 0101; mail@fairtrade.org.uk, E.
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T: +44 (0)20 7405 5942; F: +44 (0)20 7977 0101; mail@fairtrade.org.uk, E.
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campaign, which designates areas and towns committed to the promotion of
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House of Commons International Development Committee (June 5, 2007)
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http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm
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Darko, Emily; Lynch, Alainna; Smith, William (31 August 2017).
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became the first supermarket to sell a Fairtrade product (
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Fair Trade Association of Australia & New Zealand
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The Fairtrade Foundation's Fairtrade at Work Campaign
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AsociaciĂłn del Sello de Productos de Comercio Justo
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