One of the fastest growing trends in ethical and sustainable consumption, the Fair Trade movement began in Europe about forty years ago out of a concern for the exploitation of developing nations by large corporations. Once a niche market driven by activists with a vision of social justice and ecological sustainability, the Fair Trade industry has become recognized as a viable consumer-driven economic model that generates $1.5 billion per year.

The Fair Trade initiative is a dynamic social movement that advocates fair payment to third world producers for a broad range of goods. The Fair Trade certification system identifies products that meet Fairtrade Labeling Organizations’ International (FLO) standards. FLO is an association of 23 member organizations empowering producers in Latin America, Africa and Asia to improve the quality of life in their communities through market-based social change.The demand for Fair Trade products, and their availability, increased dramatically since TransFair USA began certifying products in 1998. Fair Trade Certified agricultural products such as, coffee, tea, herbs, cocoa and chocolate, fresh fruit, sugar, rice, flowers, honey and vanilla are available at over 40,000 retail locations in the U.S. Fair Trade Certified products have generated more than $100 million in additional, above-market revenue for farmers in 60 developing countries throughout Latin America, Africa and Asia since 1999.Wholesome Sweeteners, manufacturers of organic natural sugars, syrups and nectars, pioneered Fair Trade Certification for sweeteners. In a recent interview, Pauline McKee, Director of Marketing, described their ongoing program, saying, “Fair Trade Certified is our guarantee that we pay the farmers a set premium for their crops. The money is wired directly from our accounts to the cooperatives’ accounts in Costa Rica, Malawi, Mexico and Paraguay. This means that farmers can compete against factory farms, keep their land (and buy more), send their kids to school, develop the quality of their crops and build community resources. Since the last quarter of 2005 we have paid more than $1,000,000 in premiums to our cooperative partners.”Starbucks is North America’s largest purchaser of Fair Trade Certified coffee, which it sells around the world. In a groundbreaking initiative the Seattle coffee giant recently announced that it will double purchases of Fair Trade coffee to 40 million pounds in 2009. This will make Starbucks the largest buyer of Fair Trade Certified coffee in the world. See photo illustrating fair trade coffee growing under the shade canopy, courtesy of Fair Trade USA.Check back for more information about the principles of Fair Trade.

Sources:

Nicholls, A. & Opal, C. (2005), Fair Trade. Market-driven Ethical

Consumption, Sage Publications, London

Becchetti, L. & Huybrechts, B. (2007), “The Dynamics of Fair Trade as

a Mixed-form Market,” Journal of Business Ethics