Fair Trade and the Environment

[This article has also been published on the Shared Interest blog.]

Fair Trade and the Environment

At the recent Shared Interest meeting in York, Jeremy Piercy, founder of fair trade success story Shared Earth, addressed the relationship between fair trade and the environment. In his eyes environmentalists and fair trade campaigners are missing a trick – the two separate campaigns have much to gain from working together.

Climate change is a serious issue for all of us, but for some of the poorest communities in the world it is a real problem. As the End Poverty 2015 Campaign states, severe weather events are expected to increase in frequency and intensity, and poor countries lack the infrastructure to respond adequately. Meanwhile, changing rainfall patterns will devastate the crops that many in developing countries rely on; and diseases such as malaria are also expected to increase in prevalence.

As a future cause of poverty, climate change is clearly a relevant issue for fair trade – a movement that seeks to use trade to improve the lives of the world’s poorest and most marginalised producers.

But fair trade can also offer hope to the climate change cause: Many goods produced within the fair trade sector are key examples of items being produced in a carbon-neutral way. Many of the small producer groups, which produce jewellery and handicrafts etc., use traditional methods, creating their products by hand or with simple tools. A large number of recycled or eco-friendly materials are also incorporated into fair trade products. For example, bags in the By Hand range are made from materials such as recycled Batik fabric, and fast-growing natural materials including rattan, lontar palm leaves and raffia leaves.

Although many fair trade products originate from the other side of the globe, the environmental damage caused by their shipping is far less than expected when sea freight is used. In his book, Coffins, Cats & Fair Trade Sex Toys, Piercy gives the example of shipping an eco-coffin from China to the UK; when transported by boat it is roughly equivalent to driving a car in the UK for just 3-4 miles. It is airfreight that does the real damage, and fair trade organisations can choose to set the example here and transport their goods by sea freight alone.

Fair trade organisations selling products, which have been made using traditional, almost entirely carbon-neutral methods, can highlight the eco-friendly nature of the goods they are selling in comparison to those mass-produced in polluting factories, whilst the fair trade movement as a whole can also make it clear that buying fair trade is not just a fight against poverty, but also a step in the right direction as far as climate change is concerned.

Both fair trade and climate change enjoy mass public support and awareness of the two issues is high, thanks to media interest, celebrity support and extensive campaigning. Now it is time for the two campaigns to unite: for the fair trade movement to lead the fight against climate change, and for the climate change movement to lead the support for fair trade.

Reassessing Fair Trade

Joe Turner has written a fantastic article on fair trade called Imagining A Trading System Based on Gandhian Ethics. Here is my reply:

This is an excellent article, dealing with the key dilemma facing fair trade today: namely that as multinationals get on board the fair trade bandwagon, the whole concept of fair trade will change. After all, it is hard to argue that the sudden conversion of companies like Starbucks to fair trade is a result of anything other than a need to respond to consumers – a decision based on profit, not altruism.
For me the key principle of fair trade is transparent supply chains that demonstrate that any profit the retailer makes is proportional to the benefit the producers themselves make from the transaction. I do not believe that only non-profit organisations should retail fairtrade products (as co-owner of By Hand, this would be a somewhat illogical position to hold!) BUT those companies and organisations that do work in the fair trade arena need to demonstrate a real commitment to the producers themselves. They need to be motivated by making a real difference to the lives of the producers and their communities, not by winning new customers and increasing profit margins.

Unfortunately creating a situation where those working with the Fairtrade mark do so for ethical not economical reasons is almost impossible. Short of introducing a limit on the mark-up/profit margin of retailers working under the Fairtrade mark, I cannot think of a true solution.

Essentially it is up to the consumers to recognise the ‘good’ fair trade companies from the ‘bad’. With its application by companies such as Starbucks as well as discount supermarkets and other retailers, the Fairtrade mark has lost one of its key values – consumer confidence that their purchase will benefit the producers above everyone else. Starbucks fair trade coffee will undoubtedly benefit producers more than Starbucks non-fair-trade coffee, but in brandishing the Fairtrade mark they are taking business away from the companies that are really looking to make a difference to the people at the bottom of the supply chain, rather than the shareholders at the top.

Consumers have to be aware; this new-found popularity of fair trade does not mean the end of campaigning to raise consumer awareness. In fact now that the Fairtrade mark itself has been almost hijacked, campaigning is as important as ever.

Spotlight on: BY HAND

By Hand is a fair trade company based in Leeds. A family-run organisation, By Hand focuses on the beautiful jewellery produced by the craftsmen and women of Bali and has the aim of promoting the handicrafts made on the island and giving the talented producers a market for their products.

The By Hand collection includes fair trade jewellery such as sterling silver earrings, ethnic earrings, bracelets and bangles, and necklaces and pendants.

The items are available gift wrapped in handmade, fair trade paper from the hills of Nepal making By Hand an ideal place to buy ethical gifts for loved ones.

By Hand is currently running a sale: Shoppers can enjoy 20% off all of the fair trade sterling silver earrings in the By Hand collection throughout September.

For more information on By Hand, its fair trade practices and ethical policies, please visit the By Hand website at www.by-hand.co.uk or email info@by-hand.co.uk

My new favourite fair trade product

I discovered a new favourite fair trade product at the weekend – Ben & Jerry’s Chocolate Macadamia ice cream.

The official description is: “Chocolate ice cream swirled with vanilla ice cream with chocolatey covered macadamia nuts (10%).”
My description would be: “A divine chocolatey gooey mess that every now and again is punctuated with chocolatey, chewy, yummy macadamias nuts (10%).”

Ben & Jerry's Fair Trade Goodness

I love ice cream and, lets face it, ice cream doesn’t come much better than Ben & Jerry’s. Satisfying urges for extremely rich, ice creamy goodness is most difficult for those trying to live a fair trade lifestyle but Ben & Jerry’s have now provided the ideal solution. An ice cream that is both extremely desirable and fair trade.

According to Ben & Jerry’s the sugar, vanilla and cocoa in the ice cream comes from independently verified fair trade sources and the Fairtrade mark on the packet gives consumers the guarantee that the product was produced in line with fair trade standards.

The result: guilt-free consumption of a mighty fine ice cream!

Fairtrade Towns

Fairtrade Towns is the new social networking site for everyone interested in fair trade. Members can set up a profile page featuring photos, information, blog posts and comments, and can connect to other like-minded people via the site.

The site is a great way for fair trade enthusiasts to meet people with similar interests and to join in discussions and debates about all things fair trade via the website.

The site was initially set up to encourage people to get involved in making their local village, town or community a fair trade town. The original fair trade town is Garstang in Lancashire; achieving the fair trade town status back in 2000. Garstang has started a bit of a trend: there are now over 300 fair trade towns, and fair trade town campaigns go far beyond the UK’s borders.

Visit the Fairtrade Towns website now and help to spread the fair trade word!

The European Fair Trade Fair

The first European Fair Trade Fair took place only last year, in February 2008 in Lyon, France. It saw around 175 exhibitors from all over the world come together in an exhibition showcasing fair trade products, fair trade organisations and charities. Exhibitors were able to network and sell their products to both tradespeople and the general public, whilst the programme also included discussions and debates, a range of food from different regions of the world, and live music.

Exhibitors included Agrofair, Arum Dalu Mekar, Bananafair, Banana Link, Dyade, Equoland, Maya, Shared Interest, Signaléthique, Switcher, Traidcraft, World Fair Trade Organisation and many more.

The event was a resounding success that served to greatly increase awareness of fair trade products and services to both the people of Lyon and to the exhibitors themselves, who were able to find out about all the other complementary fair trade products and services out there.

European Fair Trade Fair 2009

The second European Fair Trade Fair is now in the diary and will take place on 2nd, 3rd and 4th October 2009. Once again the exhibition will be in Lyon, France, and once again the aim is to spread the word of fair trade and to raise awareness of all the work that is going on in the fair trade sector.

For more information about the European Fair Trade Fair please visit the official event website.

The Perfect Ethical Gift

The internet has brought with it a whole host of small, independent, ethical companies offering a range of unique products that you can buy from the comfort of your own home.

For those of us looking to avoid the big multinationals and support smaller businesses motivated by morals rather than money this means access to ethical gifts to suit everyone.

Most companies even offer a gift wrap service so you can purchase the perfect present online, select the gift wrap option and have it sent direct to the person who you want to surprise with an ethical treat.

It doesn’t matter who you are buying for, you are likely to be able to find a fair trade or ethical alternative to everything that the highstreet has to offer.

So, for example, you can visit By Hand and stock up on fair trade jewellery for your wife, girlfriend, sister, mum or friend. By Hand will gift wrap your item in paper made by hand in the hills of Nepal from recycled materials.

Meanwhile, husbands and male friends can be treated with an item of bamboo clothing, or a beautiful fair trade journal from a company like Paper High. Other ethical, fair trade and environmentally friendly gifts can be found at Living Ethically, which offers a directory of ethical companies with a whole host of gifts perfect for your loved ones.

Buying ethically has never been easier!

Cadbury’s Dairy Milk – now fair trade

As of Monday 20th July 2009, Cadbury’s Dairy Milk bars are now 100 % fair trade. The Guardian sees this as a clear reason to rejoice stating:

Britain’s biggest-selling chocolate bar becoming a Fairtrade product is the equivalent of finding the golden ticket for a movement that has been at the fringes of the retail sector for the last 15 years. In one swoop, the distinctive black Fairtrade mark (albeit next to the Rorschachian 2012 Olympic logo) will be placed under the noses of consumers in 30,000 shops across the country in the coming days.

The growth of fair trade in recent years saw UK fair trade sales reach £721.6m last year and with the addition of Dairy Milk, this figure is expected to rise by 25%. Last year it was fair trade bananas that made up the majority of the overall fair trade turnover, with 1 in 4 bananas sold in the UK being fair trade, amounting to a total turnover of over £150m (figures from The Fairtrade Foundation). But now, with Dairy Milk on board, fair trade chocolate is likely to assume that mantel.

Cadbury’s has set its minimum price for cocoa at $1,750 per tonne: $1,600 per tonne based on the fair trade minimum plus a so-called ’social premium’ of $150. As the current price of cocoa is above this $1,750-figure (at $2,000 per tonne) it won’t actually affect Cadbury’s buying price at present. But when the global price of cocoa drops the company will be forced to continue paying $1,750 per tonne, even if the actual market price is far lower. This is what the producers in Ghana can rely on – they know that even when global prices are driven low, they will still receive a price that they can live off.

This is a massive step for producers in Ghana, where Cadbury’s will now buy 15,000 tonnes of cocoa, but it is also a massive step for fair trade and for the chocolate industry as a whole. Rival companies cannot be seen to be left behind and, as a result, Mars have now pledged to buy all of its cocoa from sustainable sources by 2010 and will work with the Rainforest Alliance. According to the Guardian, Nestle is also working together with the International and World Cocoa foundations in a bid to stay competitive with the first large confectionary company to make the bold switch to fair trade.

From chocolate and coffee to …

Fair trade has come a long way.

Not so long ago fair trade was almost exclusively limited to coffee and chocolate in the public consciousness and these items were only available from specialist fair trade companies, such as Cafe Direct and Divine.

Nowadays supermarkets have their own versions of fair trade chocolate and coffee products and the mainstream coffee shops offer a fair trade version of their coffees – even the morally questionable Starbucks has joined in to give its social responsibility programme a boost.

In short, chocoholics and coffee-drinkers no longer have an excuse to not buy fair trade. But how many other items can now be bought fair trade?

Well, the answer is a lot.

From fair trade cotton and bamboo clothes to fair trade jewellery to fair trade gift wrap and paper – there are now a whole host of fair trade products available in almost all categories. Some of them may take a bit of searching out and will not necessarily be available on the highstreet, but in these days of googling this is no longer a problem for the vast majority of the population.

Websites are springing up all over the shop selling fair trade alternatives to everyday items. These companies are often small and run not just in a fair way, but also in a sustainable way – that means fair trade, environmentally friendly and socially responsible.

A few of Fair’s Fair’s favourites include By Hand which sells fair trade jewellery from Bali; Ethics Girls which offers clothes and household items; and Your Tomorrow which features a whole host of products from stationary to gifts and toiletries. Another site worth a visit is Bam, which sells organic bamboo clothing – the ethical alternative to synthetic fabrics.

If you have a moment free take a look at what they have to offer and maybe even make a purchase. These are the companies that we should be doing our best to keep afloat during these heady days of ‘economic crisis’!

Fair trade Cadbury – a sign of things to come?

For many fair trade means small, ethically driven businesses offering alternative products for consumers wishing to avoid big, profit-driven multinational companies. So what does the latest announcement by Cadbury mean for fair trade? Is the latest trend of large companies adopting fair trade practices a good thing?

Yes: The more companies adopting fair trade practices, the less exploitation and the more pressure on others to follow suit. If a company like Cadbury goes fair trade this means that all of their cocoa producers will be paid fairly and treated in accordance with fair trade principles. With the amount of chocolate that Cadbury produces and sells, this will affect a lot of producers. It will also set an example that fair trade is something that can be adopted by mainstream companies and will demonstrate to everyone that trading fairly is viable for everyone, not just for those running businesses to make a difference, rather than for profit. In short, it will place fair trade on a whole new level – fair trade as the new way of trading.

No: At present, fair trade is dominated by small companies working to make a difference. Most fair trade companies cannot compete with large highstreet companies on a price-by-price basis, and certainly not in terms of marketing budgets, and so they rely on the fair trade label as a way of making sales. If fair trade becomes mainstream then these companies will suffer. Ironically they will have achieved their original aim of spreading the fair trade word, but in doing so they will, in all likelihood, have put themselves out of business, leaving the big companies to dominate.

It is a hard one to call. The fact that Cadbury’s decision is, in all likelihood, based on profit, not on ethics, leaves a bad taste. Companies need to demonstrate their social responsibility to keep customers nowadays and becoming certified fair trade is an excellent way of doing this. Also, Cadbury will most likely have been losing increasing amounts of customers to fair trade companies offering fair trade chocolate – with Divine being the best-known example of these. But, the fact remains, that adopting fair trade practices for the sole reason of selling more products is not a decision that should be praised. Yes, it represents a very positive shift in consumer opinion, and this is something that should, in itself, be praised; but the conclusion must be that, for big businesses, nothing has changed – profit still rules. And for this reason, consumers who care should continue to buy from the smaller, ethically minded companies working not for their shareholders, but to make a positive difference to the world in which we live.