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Fair trade – why is it worth choosing a product with such a label?

by Biogo Biogo 29 Dec 2022 0 comments
Fairer Handel – warum lohnt es sich, ein Produkt mit einem solchen Label zu wählen?

 

Fair Trade is a trading partnership that strives for equality in international trade. By offering better trading conditions and protecting the rights of marginalized producers and wage workers, it contributes to sustainable development. Fairtrade is one of the Fair Trade certification systems whose primary goal is to improve the situation of agricultural producers in the countries of the so-called South, i.e., Latin America and the Caribbean, Southeast Asia, Oceania, and Africa. Fairtrade works for, among others:

  • fair working conditions,
  • higher purchase prices,
  • fair trading conditions for workers and farmers.

Why are Fairtrade activities important?

When we hear the slogan "Fair Trade," we might wonder why conventional trade is insufficient and why fair trade is necessary, and therefore traditional trade is unfair? This injustice arises from the distribution of profits generated by international trade. In practice, this means that the profits of residents of the Global South are incomparably lower than those of entrepreneurs from the North. This is partly due to the poor conditions for trade in developing countries, as well as the operating practices of the largest companies. According to official data from Fairtrade Poland, the average coffee plantation worker earns USD 0.5 a day, which equates to about USD 100 per year, or only about PLN 450 per year. From a cup of coffee consumed in a restaurant, the producer receives only 5-25 groschen. Coffee, cocoa, or tea plantation workers are therefore unable to support, educate, or provide adequate medical care for their own children.

How is it that entrepreneurs, workers and farmers from the South get less?

Because prices for agricultural products are artificially lowered on world markets, companies from southern countries benefit less. This is due to the enormous subsidies that governments in developed countries grant their farmers. For example, North American farmers and European landowners can sell their goods, such as sugar, more cheaply because they receive almost twice as many subsidies from their governments. On the other hand, farmers in Africa occasionally receive subsidies, and goods offered at prices including production costs are disproportionately more expensive and therefore uncompetitive. Because plantation owners want to produce as cheaply as possible in order to be competitive, plantation workers earn less. Competition revolves around contracts with the largest importers, who look for the cheapest suppliers.

It often happens that farmers from southern countries don't know how much they could actually earn and therefore receive less than they could. This is due, among other things, to a lack of information about the market and current prices. This leads them to be willing to sell their harvest at the price offered by a local middleman, who is often the sole recipient of the goods and can manipulate the purchase price. Furthermore, the lack of roads and transport prevents local farmers from delivering their harvest to larger commercial centers.

 

Why is it worth choosing products with the Fairtrade seal?

Fair trade promotes an ethical lifestyle, and thanks to people who choose to purchase Fairtrade-labeled products, poverty is reduced and social justice is increased. In summary, Fair Trade:

  • affects the change in the General Terms and Conditions by:
    • taking into account human rights, contributing to the elimination of:
      • Slavery,
      • forced labor,
    • guaranteed jobs and sources of income for people on the margins of society, who in the countries of the global South are mainly women and people with disabilities,
    • Ensuring fair pay for small producers, who thus have a stable source of income,
    • By choosing fair trade products we can contribute to poverty reduction,
    • contribute to strengthening small and medium-sized enterprises,
    • Promoting strong local and national economies,
    • taking into account environmental protection and sustainable development through environmentally friendly cultivation methods.
    • Influencing the reduction of the problem related to progressive climate change thanks to sustainable production.
    • by promoting natural farming methods, it helps to fertilize depleted soils,
    • Promoting recycling and alternative, ecological solutionsa , thereby contributing to the reduction of carbon dioxide emissions,
    • Encouraging farmers to use organic farming methods.

 

Which Fairtrade-certified products can we buy in Poland?

We as consumers are a very important part of Fairtrade. When we become conscious consumers and choose FAIRTRADE products, we help support farmers, producers, and employees in their efforts to provide better living and working conditions, education, and health protection for themselves, their families, and the entire community. Fairtrade products will mainly be: coffee , tea , bananas, cocoa , and chocolate . As interest in Fairtrade products grows from year to year, today there are also:

  • fresh vegetables and fruit,
  • dried fruits,
  • Peanuts,
  • coconut milk ,
  • Juices and other drinks,
  • Grain,
  • oils,
  • Herbs and spices.

 

The Fairtrade movement contributes to the implementation of the Sustainable Development Goals and, above all, to the eradication of poverty in all its forms throughout the world and also:

  • Empowers women – 1.3 billion women worldwide live below the poverty line, and about 70% of them are women living in rural areas in developing countries. They have traditionally been excluded from high-paying jobs, have limited property rights, restricted access to education, and are primarily responsible for raising children. Thanks to the use of Fairtrade standards, women can receive advance payments, affordable credit, and insurance, and the entire Fair Trade movement encourages farmers and producers to organize democratic structures, which empowers women.
  • is a weapon in the fight against climate change – increased temperatures are causing coffee plantations to be destroyed by fungal diseases. This damage is spreading across Central and South America, causing increasing billions of dollars in damage. Fairtrade enables farmers to adapt to climate change by providing access to best practices, more resilient plant varieties, and expertise, for example. Producers who work with Fairtrade must adhere to certain environmental rules.
  • Prevents child labor and exploitation – unfortunately, child labor is still the norm in many countries and is not regulated by law, and combating this phenomenon is an extremely difficult issue. The Fairtrade standard prohibits child labor. Fairtrade's actions are directed against the exploitation of the youngest in the workplace and against the causes of this phenomenon, namely poverty.
  • Supports the creation of a healthy rural economy – we are currently witnessing a crisis in rural communities in the countries of the South, where millions of young people are migrating from the countryside to the cities and abroad in search of work and better wages. If young people do not want to work, the land becomes increasingly barren, unsuitable for further cultivation. This contributes to the deepening backwardness of agricultural holdings.
  • Fairtrade products are ethically sourced and subject to strict controls. Producers are required to comply with national and international regulations regarding the use of fertilizers and pesticides.

When shopping, it's worth allocating at least part of your budget to Fairtrade products. By choosing them, we contribute to reducing poverty and the negative impacts of human activities. Fair trade ensures fair prices and payment for small producers, provides a source of income for people on the margins of society—especially women and people with disabilities in southern countries—and eliminates forced child labor. These are just a few of the many very important reasons why it's worth choosing products with the Fairtrade label.

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