The Challenges of Marketing Fair Trade - Wynne, Sandy

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adequate food on the table for his/her family. This problem challenges the consumer’s perception that the farmer, not just the cooperative, receives a fair price. Cooperatives do receive fair prices for their products as defined by FLO. These prices are designed to cover production costs, costs related to complying with certification standards, and the cost of living. Producers are paid after expenses are covered; what is left over is divided among the farmers. Social premiums can only be used for community projects. Unfortunately “the full benefits of higher prices do not always trickle down to small-scale farmers” (Daniels & Petchers, 2005, p.26). Given what some studies point out, concerns of food security suggest that the prices are not as fair as they should be. “Certifications are not likely influencing the level of food security of coffee households” (Mendez et al., 2005, p.30), but it is important to remember that individual farmers in different cooperatives experience varying degrees receiving a greater portion of the net profits from their respective cooperatives. Testimonies on Fair Trade NGO websites often demonstrate how Fair Trade has made a big difference in the lives of producers. While those differences are important, the realities may not always match up with promotional material. Along with the question of how fair the price is, some critics challenge the fairness of FLO’s methods of operation. The notion that, as of 2004, the producers must pay for their certification and annual inspections when their lives are a constant struggle to survive may be seen as inherently unfair. The initial certification can run into thousands of dollars. In addition to the burden of certification and inspection fees, another aspect of the fairness issue relates to exclusivity. When commodity prices are low, the demand for 33
producers getting Fair Trade certified grows yet FLO’s practices often result in restricting the number of producer groups when they are most needed. Meanwhile, coffee farms that include hired help yet believe in and practice the essence of the Fair Trade principles do not qualify for Fair Trade certification. Thus the workers on large coffee plantations are excluded from the Fair Trade benefits. FLO justifies this “unfairness” with its goal to help “build economic independence and empowerment for Fairtrade certified small farm organizations” (http://www.fairtrade.net/introduction.html). 34
Page 1 and 2: The Challenges of Marketing Fair Tr
Page 3 and 4: Acknowledgements The MSA graduate p
Page 5 and 6: anding must be universal, yet there
Page 7 and 8: Table of Contents Executive Summary
Page 9 and 10: APPENDIX C: Traditional v Fair Trad
Page 11 and 12: • Producers/farmers democraticall
Page 13 and 14: of Fair Trade products for their re
Page 15 and 16: Although FTC coffee accounts for un
Page 17 and 18: Another book, The fair trade fraud
Page 19 and 20: did not have a set format of questi
Page 21 and 22: company yet it involves many busine
Page 23 and 24: specifically to products certified
Page 25 and 26: Certified coffee, for example, must
Page 27 and 28: profit margin differential between
Page 29 and 30: experienced similar results. Employ
Page 31 and 32: does that mean all the other produc
Page 33 and 34: in 2006 according to its website. T
Page 35 and 36: Certified coffee, the author was un
Page 37 and 38: farmers enables them to consider th
Page 39 and 40: (Griffin & Pustay, 2007, p.127). So
Page 41: There is one NI in the South that i
Page 45 and 46: The abundance of product labels and
Page 47 and 48: many benefits which are essential t
Page 49 and 50: country. In May 2008 the Fair Trade
Page 51 and 52: increase capacity for launching mor
Page 53 and 54: Certified products. 3) Accessibilit
Page 55 and 56: companies like Divine Chocolate and
Page 57 and 58: their MNC licensees demonstrate a s
Page 59 and 60: positive example of why sales are s
Page 61 and 62: CHAPTER 4: Conclusions and Recommen
Page 63 and 64: made a unilateral decision to mains
Page 65 and 66: American culture. Perhaps this mode
Page 67 and 68: To address the challenges of increa
Page 69 and 70: CHAPTER 5: Future Research Areas In
Page 71 and 72: Downie, A. (2007, October 2). Fair
Page 73 and 74: Jacques, S., Hong,W. (2007, Septemb
Page 75 and 76: International Development). Gale. S
Page 77 and 78: PERSONAL INTERVIEWS/CONVERSATIONS (
Page 79 and 80: FTRN is an organization that provid
Page 81 and 82: APPENDIX B: Logos also called marks
Page 83 and 84: Certified Naturally Grown.A non-pro
Page 85 and 86: APPENDIX D: U.S. Fair Trade Marketi
Page 87 and 88: APPENDIX F: Product Marketing Examp
Page 89 and 90: Awake Coffee Attn: Manager/Owner PO
Page 91 and 92: February 15, 2008 APPENDIX I: Cover
Page 93 and 94:
Books (44%) Network or trade organi
Page 95 and 96:
20. Do you belong to the Fair Trade
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