Witkowski article fair trade marketing an alternative system for globalization and development

Fair Trade, Corporate Accountability and Beyond: Experiments in Globalizing - Shelley Marshall - Google Livres

The Fairtrade certification initiative was created to form a new method for economic trade. This method takes an ethical stand point, and considers the producers first, in an attempt to emphasise equality in the market place. The Fairtrade organization forms a partnership between the consumer and the producer, and aims to eliminate other parties within the supply chain.

The second part of Fairtrade International is the independent certifierFLOCert. FLOCert ensures that companies and producers all comply with FLO's standards of trade. Fairtrade International was initially made up of other national fair trade initiatives from around the world, who came together to form one international umbrella organisation FLO.

Fairtrade International started with the coffee industry, but now covers a range of products such as cocoafruitcottonflowerstea and others. The established buyers of these products make up a niche marketwhich makes marketing for Fairtrade a challenge. Retail sales of Fairtrade certified products have grown steadily over the last decade and are expected to continue growing but Fairtrade certified products make up a relatively minuscule share of the global market for agricultural goods.

As ofproducer organizations in 58 developing countries were Fairtrade certified, representing over 1. The fair trade movement stemmed from an initiative established by the Dutch development agency, Solidaridad, and aimed to create more equality between coffee producers and roasters. The agency recognised that the producers were not being treated fairly, and strived to create a more ethical system to trade. The Max Havelaar seal, which was based on a fictional character, was established "to license existing roasters and retailers who complied with its fair trade criteria" Alverado, The four benefits in this early model of the fairtrade initiative were:.

The Solidaridad informed large audiences of the mistreatment of coffee producers and poor living conditions in developing countries. They worked with other associations as well as the mass media to spread the message and create an awareness of their fair trade initiative.

Because of their efforts, in the first bag of Max Hevelaar sealed coffee from Mexico was delivered to Holland's Prince Claus, and was launched to be sold in supermarkets throughout Holland. By the s every western European country had established their own national version of the Max Hevelaar initiative. The international fair trade label was introduced in to improve visibility for consumers.

A key part of the Fair Trade initiative is to inform consumers through innovative marketing. According to Nicholls and Opal [4] the marketing must create a value proposition for the initiative that encompasses the ethical side, as well as the quality of the product.

Fair Trade Marketing, An Alternative System for Globalization and Development | Fair Trade | Retail

A challenge that marketers of Fair Trade products often face is that their funding is very limited. Marketing often comes from a variety of print media, such as newspaper articles and magazines, as well as some guerilla marketing strategies. Another challenge for marketers is which aspect of the initiative it should sell. According to Witkowski[5] marketers are challenged by whether they should sell the product or the ethics. One of the biggest selling fair trade branded products in Britain is Cafedirect, who have used a variety of platforms to position their fair trade brand in the market.

However, Wright [6] recognises that it is often less successful to market fair trade from an ethical perspective than it is to persuade consumers by confirming their good taste. To use an example; Fair trade coffee packers in developed countries pay a fee to their country's Fairtrade organization for the right to use the brand and logo.

Nearly the entire fee goes to marketing. Packers and retailers can charge as much as they want for the coffee.

The coffee has to come from a certified Fairtrade cooperative, which pays certification and inspection fees. The importer is obliged to pay the exporter a base price which keeps the price from sinking below that level. It is sometimes higher than the going world price, but at times when coffee prices are high, it may be lower than the going price.

For a few products, like coffee, there is also a minimum price. The cooperatives or other Fairtrade certified firms incur additional costs including increased marketing costs, certification and inspection fees, [8] and costs of conforming to the specifications. However, they can, on average, sell only a small amount of their output as Fairtrade, because of lack of demand, and must sell the rest as uncertified at world prices.

Any deficit after paying these costs means a lower price for farmers, while any surplus from the premium price must be spent on "social projects" for "common goals" organized by the exporting cooperative rather than being an extra payment for farmers. Fairtrade farmers have to meet a large range of criteria on production: Fairtrade Standards contain minimum requirements that all producer organizations must meet to become certified as well as progress requirements in which producers must demonstrate improvements over time.

To become certified Fairtrade producers, the cooperatives and their member farmers must operate to certain standards laid down by Fairtrade International. FLO-CERT, the for-profit side, handles producer certification, inspecting and certifying producer organizations in more than 50 countries in Africa, Asia, and Latin America. There is widespread confusion because the fair trade industry standards provided by Fairtrade International The Fairtrade Labelling Organization use the word "producer" in many different senses, often in the same specification document.

Sometimes it refers to farmers, sometimes to the primary cooperatives they belong to, to the secondary cooperatives that the primary cooperatives belong to, or to the tertiary cooperatives that the secondary cooperatives may belong to [13] but "Producer [also] means any entity that has been certified under the Fairtrade International Generic Fairtrade Standard for Small Producer Organizations, Generic Fairtrade Standard for Hired Labour Situations, or Generic Fairtrade Standard for Contract Production.

The part referring to democratic organization has the primary cooperative as "producer". There are several types of Fairtrade Standards, including standards for contract situations, [18] for importers, [19] and also for the different products.

Fairtrade Standards for small farmers' organizations include requirements for democratic decision making, so that farmers may have a say in how the Fairtrade Premiums are invested. They also include requirements for capacity building and economic strengthening of the organization. Fairtrade Standards for hired labour situations specify that employees receive minimum wages and collective bargaining.

witkowski article fair trade marketing an alternative system for globalization and development

The standards also specify that Fairtrade-certified plantations should have no forced or child labour and that health and safety requirements are met. These labor standards do not apply to Fairtrade "small farmer cooperatives" though some have an average of 2. This joint body decides on how Fairtrade Premiums will be spent to benefit plantation employees.

Fairtrade Standards and procedures are emkay share stock brokers limited by the Fairtrade International Standards Committee, an external committee comprising all FLO stakeholders labeling initiatives, producers and traders and external experts. Fairtrade Standards are set by FLO in accordance to the requirements of the ISEAL Code of Good Practice in standard setting and are in addition the result of a consultation process, involving a variety of stakeholders: The main aspects of the Fairtrade system are the Minimum Price and the Premium.

These are paid to the exporting firm, usually a second tier cooperative, not to the farmer. Fairtrade inspection and certification are carried out, for a fee, [24] by FLO-CERTan independent, for profit, oracle data conversion strategy created by Fairtrade International in FLO-CERT certifies that both producers and traders have met with Fairtrade Standards and that producers have invested any surplus received through Fairtrade in social projects.

FLO-CERT works with a network of around independent inspectors that regularly visit producer and trade organizations and report back to FLO-CERT. All certification decisions are then taken by a Certification Committee, composed of stakeholders from producers, traders, national labelling organisations and external experts. An Appeals Committee handles all appeals. FLO-CERT inspections and certification follow the international ISO standards for product certification bodies ISO In it was claimed by Christian Jacquiau [ who?

It reported that they were "also handed evidence of at least one coffee association that received Fairtrade certification despite illegally growing some 20 per cent of its staunton va livestock market in protected national forest land.

If audit fees are too high they will price the product out of the market, and if they are too low, how to use leverage to make money in local real estate is not possible to do the audit specified, and the guarantee becomes meaningless.

There are complaints that the Fairtrade audit and certification fees are so high that the cooperatives may receive little money after paying them. As of the early s, Fairtrade farmers and marketing organizations incurred a wide range of costs in achieving and maintaining certification. They incurred these costs on all their production, but they can only recover costs on the small part of their production that they can sell as "Fairtrade certified".

In practice they sold only a small proportion of their output as Fairtrade, because of lack of demand, and had to sell the rest as uncertified at world prices.

For example, there is not enough demand to take all the certified coffee produced, so most has to be sold as uncertified. In only The cooperative or other certified forex directory mxn has to spend money on conforming to the standards, with changed employment practices, the introduction and administration of the required democratic processes, changed processing, labelling gft forex dealing desk packing, changed material.

Fairtrade farmers also have to meet a large range of criteria on production: There are substantial profits to be obtained by mislabelling, and enforcement is difficult, especially in outlets like cafes. Although many attempts to market fair trade products were observed in the s and s, fair trade sales only became widespread with the Max Havelaar labeling initiative in and the establishment of Fairtrade International which included other regional initiatives like it in Fair trade sales prior to labelling initiatives were contained to relatively small world shops also called charity shopsoperated by alternative trading organizations ATOs such as Oxfam and Traidcraft.

Many felt that these world shops were too disconnected from the rhythm and the lifestyle of contemporary developed societies.

The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers.

The only way to increase sale opportunities was to start offering fair trade products where consumers normally shop, in the large distribution channels. The problem was to find a way to expand distribution without compromising consumer trust in fair trade products and in their origins.

At the initiative of Mexican coffee farmers, the first fair trade labelling initiative, Stichting Max Havelaarwas launched in the Using algorithms in the stock market on November 15, by Nico RoozenFrans van der Hoff and Dutch ecumenical development agency Solidaridad.

The initiative offered disadvantaged coffee producers following various social and environmental standards an above market price for their crop. The coffee, originating from the UCIRI cooperative in Mexico, was imported by Dutch company Van Weelyroasted by Neuteboomsold directly to worldshops and, for the first time, to mainstream retailers across the Earn money testing games. The initiative was groundbreaking as for the first time Fairtrade coffee was being offered to a larger consumer segment.

Fairtrade labelling certification provided some assurance that the products were really benefiting the farm workers at the end of the supply chain. The initiative was a great financial success and was replicated in several other markets: Initially, while the Max Havelaars and the Witkowski article fair trade marketing an alternative system for globalization and development co-operated product by product with equivalent standards and producer lists there was no contractual agreement to ensure global standards.

FLO is an umbrella organization whose mission is to set the Fairtrade Standards, support, inspect and certify disadvantaged producers and harmonize the Fairtrade message across the movement. InFLO launched a new International Fairtrade Certification Markeffectively replacing most previous Max Havelaar and TransFair certification marks. The goals of the launch were to improve the visibility of the Mark on supermarket shelves, facilitate cross border trade and simplify export procedures for both producers and exporters.

Today, all but one labelling initiative have fully adopted the new mark. TransFair USA has apparently elected to continue with its own Fair Trade Certified Mark for the time being, [42] while the Canadian organization currently allows certified products to carry either mark, it is transitioning toward sole use of the International Fairtrade Certification Mark.

In JanuaryFairtrade Labelling Organizations International was divided into two independent organizations: Fairtrade International FLOwhich sets Fairtrade Standards and provides producer business support, and FLO-CERT, which inspects and certifies producer organizations. The aim of the split was to ensure the impartiality, the independence of the certification process and compliance with ISO 65 standards for product certification bodies. At present, over 25 labelling initiatives and producer networks are members or associate members of Fairtrade International.

There are now FAIRTRADE Certification Marks does it cost money to make a minecraft server dozens of different products, based on FLO's certification for coffee, tearicebananasmangoescocoacottonstock market crash 1929 interest rate governmenthoneyfruit juicesnutsfresh fruitquinoaherbs and spiceswine and footballs.

Inusd eur exchange rate bloomberg trade coffee was sufficiently mainstream that Walmartthe world's largest retailer began selling it, and pricing it about the same as regular.

The Fairtrade and Fairmined dual certification for gold was launched across the United Kingdom on 14 February[44] a joint scheme between The Fairtrade Foundation and The Association for Responsible Mining. From Wikipedia, the free encyclopedia. This article is about FLO International 's Fair trade certification.

For more general fair trade certifications, see Fair trade certification. For the more general article on the fair trade movement, see Fair trade. For other uses, see Fair trade disambiguation.

This article has multiple issues. Please help improve it or discuss these issues on the talk page.

Learn how and when to remove these template messages. Fair trade impact studies. For general fair trade criticism, see Fair Trade Criticism. An alternative to the walmartopia?

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Archived from the original PDF on May 2, URL accessed on August 1, Retrieved January 23, Fairtrade Labelling Organizations International. Accessed October 4, Fee System Small Producer Organization - Explanatory Document.

witkowski article fair trade marketing an alternative system for globalization and development

Retrieved January 3,from http: Financial Times; Weitzman, H. Financial Times, September 8. Positive and normative analysis from a value chain perspective', Journal of Business Ethics, 86, Fairtrade Firm Accused of Foul Play. The mainstreaming of Fair Trade: Journal of Strategic Marketing, pp.

What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective. Journal of Business Ethics, pp.

Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap?. Fairtrade Standard for Small Producer Organizations, version: Public Compliance Criteria List - Small Producers' Organisations. Generic Fairtrade Trade Standard.

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Retrieved December 24,from http: A Cup at a Time? Food and Agricultural Organisation, http: Annual Reports,, Accessed April 26, Retrieved 20 December Business and economics portal.

History of fair trade Fairtrade certification Fair trade and politics Fair trade impact studies Fair trade debate Alternative trading organization Trade justice Trade Justice Movement Sweatshops Body shopping Worldshop. Fairtrade Labelling Organizations International World Fair Trade Organization Network of European Worldshops European Fair Trade Association FINE Fair Trade Federation International Resources for Fairer Trade IRFT.

Fairtrade Town List of Fairtrade settlements Fairtrade fortnight Make Trade Fair No Sweat World Fair Trade Day.

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