Fair-Trade, its about far more than just coffee

In the supermarket this week I noticed again (but this time it registered) the “Fair Trade Certified” logo on a number of products so this time I thought I’d do my research about the logo after bringing the shopping home. In the world of corporate social responsibility (CSR) – fair trade is a key component; are the goods or in this case food sourced in an ethical way providing a proper and equitable cash value for the services and suppliers be they in the next country or half way round the world?

According to TransFair USA consumers in the United States purchased $1.2 billion in fair-trade products in 2009. TransFair USA are the largest independent certifier of fair-trade standards in the market but there are several others in what is happily a growing industry. Whether retailer or consumer awareness is driving the need for products to be certified is not the concern but the encouraging news is that more and more retailers are having products assessed so that qualification of fair-trade can be awarded to the item being sold, not surprisingly this is especially prevalent in the food industry. Its a remarkable story of growth which began initially with the coffee industry in the 1990’s as attention to the crop sourcing and standards fell under a spotlight which previously had never shone on food or drink suppliers. Fair-trade in its broadest definition ensures that farmers are paid a practical living wage and work within acceptable and ethical conditions. Farm owners are also required to reinvest profit within the community and indeed the business itself. At the turn of the century coffee was the only product being deemed fair-trade, just ten years later over 6,000 different fair-trade certified products are available on US shelves ranging from vegetables to fruits, wines and oils.
Expansion into other arenas such as clothing, sports equipment and furnishings is also on the horizon as the industry and consumers alike both want to know more about what they are purchasing and the ethics of its supply. It is not only the right thing for manufacturers to do but can also set them apart in a hyper competitive consumer led market. Ben and Jerry’s were happy to announce that they will be 100% fair-trade by 2013 the largest company of their type to make such a proclamation.

Fair-trade is a success by definition as farmers form a co-operative and agree to fair-trade regulations. These in turn provide safe and reasonable working conditions and farming practices that are more environmentally friendly. On the other side of the equation buyers will assure a minimum price and further investment in community projects as negotiated by the regulations. More enduring and less market volatile contracts result and the buyers are able to market the product with certification that attests to the standards they follow. That is of course where companies like TransFair come into the picture, as an independent body they provide a continuous independent audit of processes to ensure standards and rules are met so that the certification is valid.

While a certain premium in price is sometimes attached to fair-trade products that margin is growing ever smaller and in many cases is non existent. Considering what has been accomplished in 10 years its reasonable to assume fair-trade practices will continue to grow to the extent that we evaluate most products we purchase with the same considerations. That can only be a good thing.

To learn more about TransFair USA please visit their website.