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76-444: The World Fair Trade Organization ( WFTO ) is the global community and verifier of enterprises that fully practice Fair Trade. It is an association of SMEs, farmers or retailers that fully practice the 10 Principles of Fair Trade. They also advocate for fundamental change in our current economic system. Members are primarily fair trade enterprises, whose business model is verified by independent audit and peer review . Verification

152-678: A certified fair trade producer , the primary cooperative and its member farmers must operate to certain political standards, imposed from Europe. 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. In the fair trade debate there are many complaints of failure to enforce these standards, with producers, cooperatives, importers, and packers profiting by evading them. There remain many fair trade organizations that adhere more or less to

228-458: A "feel good" movement. Because the movement has an established history, it is not just a fad. It raises awareness about an issue and offers a solution. The solution is an easy one for college students to handle: paying about five cents more for a cup of coffee or tea. Worldshops, or fair trade shops, are specialized retail outlets that offer and promote fair trade products. Worldshops also typically organize educational fair trade activities and play

304-733: A Fair Trade school or Fair Trade university emerged from the United Kingdom , where the Fairtrade Foundation maintains a list of colleges and schools that comply with the requirements to be labeled such a university. In order to be considered a Fair Trade University, a university must establish a Fairtrade School Steering Group. They must have a written and implemented, school-wide, fair trade policy. The school or university must be dedicated to selling and using Fair Trade products. They must learn and educate about Fair Trade issues. Finally, they must promote fair trade not only within

380-552: A definition of fair trade developed by FINE , an informal association of four international fair trade networks: Fairtrade Labelling Organizations International , World Fair Trade Organization (WFTO), Network of European Worldshops and European Fair Trade Association (EFTA). Fair trade, by this definition, is a trading partnership based on dialogue, transparency and respect, that seeks greater equity in international trade. Fair trade organizations, backed by consumers, support producers, raise awareness and campaign for changes in

456-407: A detailed description about what fair trade is. They could, however, identify fair trade based on some of its possible benefits to their community. When asked, farmers responded that fair trade has had a positive effect on their lives and communities. They also wanted consumers to know that fair trade is important for supporting their families and their cooperatives . Some producers also profit from

532-423: A lesser extent, North America. Some felt that these 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 offer fair trade products where consumers normally shop, in large distribution channels. The problem

608-415: A process of convergence among "LIs" ("Labeling Initiatives") led to the creation of Fairtrade Labelling Organizations International, an umbrella organization whose mission is to set fair trade standards, support, inspect, and certify disadvantaged producers, and harmonize the fair trade message across the movement. In 2002, FLO launched an International Fairtrade Certification Mark. The goals were to improve

684-525: A role in trade justice and other North-South political campaigns . Worldshops are often not-for-profit organizations run by local volunteer networks. The movement emerged in Europe and a majority of worldshops are still based on the continent, but worldshops also exist in North America, Australia, and New Zealand. Network of European Worldshops The Network of European Worldshops ( NEWS! )

760-408: A sales value ratio of 80% handcrafts to 20% agricultural goods was the norm, in 2002 handcrafts amounted to 25% of fair trade sales while commodity food was up at 69%. Sales of fair trade products only took off with the arrival of the first Fairtrade certification initiatives. Although buoyed by growing sales, fair trade had been generally confined to small worldshops scattered across Europe and, to

836-538: A simple choice while being spared these burdens and expenses. Consumers of fair trade products usually make the intentional choice to purchase fair trade goods based on attitude , moral norms, perceived behavioral control and social norms. It is useful to include of measure of moral norms to improve the predictive power of intentions to buy fair trade over the basic predictors, like attitude and perceived behavioral control. University students have significantly increased their consumption of fair trade products over

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912-613: A standard-setting body ( Fairtrade International ) and a certification body ( FLO-CERT ), the system involves independent auditing of producers and traders to ensure the standards are met. For a product to carry either the International Fairtrade Certification Mark or the Fair Trade Certified Mark , it must come from FLO-CERT inspected and certified producer organizations. The crops must be grown and harvested in accordance with

988-452: A third of their output as fair trade, because of lack of demand, and sell the rest at world prices. The exporting cooperative can spend the money in several ways. Some go to meeting the costs of conformity and certification: as they have to meet fair trade standards on all their produce, they have to recover the costs from a small part of their turnover, sometimes as little as 8%, and may not make any profit. Some meet other costs. Some

1064-412: A variety of marketing strategies . Most fair trade marketers believe it is necessary to sell the products through supermarkets to get a sufficient volume of trade to affect the developing world. In 2018, nearly 700,000 metric tons of fair-trade bananas were sold worldwide, with the next largest fair-trade commodity being cocoa beans (260,000 tons) then coffee beans (207,000 tons). The biggest product in

1140-518: Is Fair Trade. The system was originally designed for marginalised producers currently not catered for by the Fairtrade Certification system, which was designed for commodity products. Due to the variety and complexity of handcrafts, for example, a product standard is technically difficult to apply. The system, then, provides an alternative that will verify that an organisation practices Fair Trade in all its activities. Once certified,

1216-561: Is a visible way that these farmers are different from their neighbors and it influences the way they farm. They place importance on natural growing methods. Fair trade farmers are also more likely to attribute their higher prices to the quality of their products rather than fair market prices. Fairtrade labelling (usually simply Fairtrade or Fair Trade Certified in the United States) is a certification system that allows consumers to identify goods that meet certain standards. Overseen by

1292-518: Is at enterprise level, which covers all aspects of the business and supply chain. WFTO verification should not be confused with commodity certification systems, such as Fairtrade certification , where only a component of the product is covered. The WFTO product label can only be used by verified fair trade enterprises, which consist of producer cooperatives and associations, export marketing companies, importers, retailers, national and regional fair trade networks and Fair Trade Support Organizations. WFTO

1368-481: Is available to all WFTO members who meet the requirements of the WFTO Standards and Monitoring System and so far over 150 organizations have registered. The WFTO logo is for organizations that demonstrate a 100% commitment to Fair Trade in all their business activities. Only monitored WFTO members are authorized to use the logo . The Fair Trade Organization Mark (WFTO Logo) shows that an organization follows

1444-512: Is democratically run on a one member one vote basis . WFTO was created in 1989 and was formerly the International Federation of Alternative Traders ("IFAT"). WFTO members use commercial activity to achieve a social mission and have been referred to as 'Fair Trade Social Enterprises'. WFTO's stated mission is "to enable producers to improve their livelihoods and communities through Fair Trade". Their five goals are: In 2017,

1520-416: Is spent on social projects such as building schools, health clinics and baseball pitches. Sometimes there is money left over for the farmers. The cooperatives sometimes pay farmers a higher price than farmers do, sometimes less, but there is no evidence on which is more common. The marketing system for fair trade and non-fair trade coffee is identical in the consuming and developing countries, using mostly

1596-412: Is spent. These premiums usually go towards socioeconomic development, wherever the producers or producer-groups see fit. Within producer-groups, the decisions about how the social premium will be spent are handled democratically, with transparency and participation . Producers and producer-groups spend this social premium to support socioeconomic development in a variety of ways. One common way to spend

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1672-421: Is the network of Fair Trade producer organisations operating in Africa and working with disadvantaged small-scale producers. The Asian chapter of WFTO operates in 20 countries and comprises over 140 fair trade organizations. Member nations include: Bangladesh, China, Cambodia, Georgia, India, Indonesia, Japan, South Korea, Laos, Malaysia, Nepal, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam. Their roles in

1748-487: Is used in all these meanings in key documents. In practice, when price and credit are discussed, "producer" means the exporting organization, "For small producers' organizations, payment must be made directly to the certified small producers' organization". and "In the case of a small producers' organization [e.g. for coffee], Fairtrade Minimum Prices are set at the level of the Producer Organization, not at

1824-654: The Earth Charter and the application of fair trade principles, and several upper-level anthropology courses focused on fair trade. In 2010, the University of California, San Diego became the second Fair Trade University in the United States. UC San Diego considered the efforts of the Fairtrade Foundation in the UK, but wanted to be more detailed about how their declaration as a Fair Trade University would change

1900-570: The Fairtrade Schools Scheme . In 2011, more than 1.2 million farmers and workers in more than 60 countries participated in Fairtrade International's fair trade system, which included €65 million in fairtrade premium paid to producers for use developing their communities. Some criticisms have been raised about fair trade systems. One 2015 study concluded that producer benefits were close to zero because there

1976-523: The Mennonite Central Committee (MCC), and SERRV International were the first, in 1946 and 1949 respectively, to develop fair trade supply chains in developing countries. The products, almost exclusively handicrafts ranging from jute goods to cross-stitch work, were mostly sold in churches or fairs. The goods themselves had often no other function than to indicate that a donation had been made. The current fair trade movement

2052-712: The Network of European Worldshops (NEWS) was integrated into WFTO-Europe. WFTO-LA is currently composed of 55 members from 13 countries of Latin America. The Regional Office is located in Areguá, Paraguay. WFTO-PacificRim is currently composed of 23 members from 5 countries around the Pacific - New Zealand, Australia, Japan, Canada, and USA. The Regional Office is located in Irvine, near Los Angeles, California, USA. Fair trade Fair trade labelling organizations commonly use

2128-766: The United Nations charter of human rights , a fair price that covers the cost of production and facilitates social development, and protection of the environment. The Fairtrade certification also attempts to promote long-term business relationships between buyers and sellers, crop pre-financing, and greater transparency throughout the supply chain. The Fairtrade certification system covers a growing range of products, including bananas, honey, coffee, oranges, Cocoa bean, cocoa, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea and wine. Companies offering products that meet Fairtrade standards may apply for licences to use one of

2204-614: The Canadian Student Fair Trade Network (Canada), or Fair Trade Campaigns (USA), which also houses Fair Trade Universities and Fair Trade Schools. The involvement of church organizations has been and continues to be an integral part of the fair trade movement: The first attempts to commercialize fair trade goods in markets in the global north were initiated in the 1940s and 1950s by religious groups and various politically oriented non-governmental organizations (NGOs). Ten Thousand Villages, an NGO within

2280-506: The Earth Charter and created a Campus Sustainability Plan to align with the efforts of becoming a Fair Trade University. The University of Wisconsin-Oshkosh also offers courses in different disciplines that implement fair trade learning. They offer a business course with a trip to Peru to visit coffee farmers, an environmental science class that discusses fair trade as a way for cleaner food systems, an English course that focuses on

2356-836: The European Worldshops (such as the annual European Worldshops Day in May) and supports the professionalisation of national associations of Worldshops. The aim of NEWS! is the promotion of fair trade in general and the development of the Worldshops movement in particular. Worldshops sell fair trade products and organize various educational exhibits, programmes and campaigns to promote fairer trade practices. Worldshops cooperate on local, regional, national, and international levels, supported by their National Associations. NEWS! ceased to exist in its original form in October 2008. It

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2432-556: The Fairtrade Certification Marks for those products. The International Fairtrade Certification Mark was launched in 2002 by FLO, and replaced twelve Marks used by various Fairtrade labelling initiatives. The new Certification Mark is currently used worldwide (with the exception of the United States). The Fair Trade Certified Mark is still used to identify Fairtrade goods in the United States. The fair trade industry standards provided by Fairtrade International use

2508-539: The WFTO board appointed Erinch Sahan as chief executive. In 2004 WFTO launched verification scheme and mark. The FTO Mark identifies registered Fair Trade Organizations worldwide (as opposed to products in the case of FLO International and Fairtrade mark) and guarantees that standards are being implemented regarding working conditions, wages, child labor and the environment. These standards are verified by self-assessment, mutual reviews and external verification. The FTO Mark

2584-420: The WFTO's 10 Principles of Fair Trade, covering working conditions, transparency, wages, the environment, gender equity and more. The WFTO logo is not a product mark - it is used to brand organisations that are committed to 100% Fair Trade. It sets them apart from commercial as well as other Fair Trade businesses, and provides a clear signal to retailers, partners, governments and donors that their core activity

2660-582: The cooperative, other than receiving a better price for their coffee. Many farmers around the world are unaware of fair trade practices that they could be implementing to earn a higher wage. Coffee is one of the most highly traded commodities in the world, yet the farmers who grow it typically earn less than $ 2 a day. When surveyed, farmers from Cooperativa Agraria Cafetalera Pangoa (CAC Pangoa) in San Martín de Pangoa, Peru, could answer positively that they have heard about fair trade, but were not able to give

2736-499: The current fair trade system, but some farmers, such as the Mazaronquiari group from CAC Pangoa, desire yet a higher price for their products in order to live a higher quality of life. A component of trade is the social premium that buyers of fair trade goods pay to the producers or producer-groups of such goods. An important factor of the fair trade social premium is that the producers or producer-groups decide where and how it

2812-414: The defining characteristic of ATOs is equal partnership and respect–partnership between the developing region producers and importers, shops, labelling organizations, and consumers. Alternative trade "humanizes" the trade process–making the producer-consumer chain as short as possible so that consumers become aware of the culture, identity, and conditions in which producers live. All actors are committed to

2888-637: The early nineties. The WFTO has several hundred partnerships across the globe with established practices and procedures meant to protect the groups and individuals associated with Fair Trade. WFTO prescribes 10 Principles that Fair Trade Organizations must follow in their day-to-day work and carries out monitoring to ensure these principles are upheld: The WFTO operates in five key regions: Africa , Asia , Latin America , Europe and North America & Pacific Rim . Members in Africa, Asia, Europe and Latin America have come together to form WFTO regional chapters. The Cooperation for Fair Trade in Africa - COFTA

2964-647: The emphasis on the establishment of fair trade relations with the developing world. 1965 saw the creation of the first alternative trading organization (ATO): that year, British NGO Oxfam launched "Helping-by-Selling", a program that sold imported handicrafts in Oxfam stores in the UK and from mail-order catalogues. By 1968, the Whole Earth Catalog was connecting thousands of specialized merchants, artisans, and scientists directly with consumers who were interested in supporting independent producers, with

3040-471: The fair trade movement also varies around the world. A study of coffee growers in Guatemala illustrates the effect of fair trade practices on growers. In this study, thirty-four farmers were interviewed. Of those thirty-four growers, twenty-two had an understanding of fair trade based on internationally recognized definitions, for example, describing fair trade in market and economical terms or knowing what

3116-637: The fair trade movement that aims "to contribute to the alleviation of poverty in developing regions of the world by establishing a system of trade that allows marginalized producers in developing regions to gain access to developed markets." ATOs have fair trade at the core of their mission and activities, using it as a development tool to support disadvantaged producers and to reduce poverty and combining their marketing with awareness-raising and campaigning. ATOs are often based on political and religious groups, though their secular purpose precludes sectarian identification and evangelical activity. According to EFTA,

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3192-569: The fair trade operations vary, and included are: producers, cooperatives, retailers, NGO's, and faith-based organizations, amongst others. WFTO-Europe, formerly known as IFAT Europe (International Federation for Alternative Trade), is formed by 84 members, amongst them Fair Trade organizations, Fair Trade networks and support organizations. It represents the European chapter of the World Fair Trade Organization. In 2009,

3268-413: The financing of scholarships from funding from their fair trade social premium. In terms of education, the social premium can be used to build and furnish schools too. Most fair trade import organizations are members of, or certified by, one of several national or international federations. These federations coordinate, promote, and facilitate the work of fair trade organizations. The following are some of

3344-621: The goal of bypassing corporate retail and department stores. The Whole Earth Catalog sought to balance the international free market by allowing direct purchasing of goods produced primarily in the U.S. and Canada but also in Central and South America. In 1969, the first worldshop opened its doors in the Netherlands. It aimed at bringing the principles of fair trade to the retail sector by selling almost exclusively goods produced under fair trade terms in "underdeveloped regions". The first shop

3420-400: The handicrafts market forced fair trade supporters to rethink their business model and their goals. Moreover, several fair trade supporters were worried by the effect on small farmers of structural reforms in the agricultural sector as well as the fall in commodity prices. Many came to believe it was the movement's responsibility to address the issue and remedies usable in the ongoing crisis in

3496-423: The implementation of certain fair trade standards can cause greater inequalities in some markets where these rigid rules are inappropriate for the specific market. In the fair trade debate there are complaints of failure to enforce the fair trade standards, with producers, cooperatives, importers, and packers profiting by evading them. One proposed alternative to fair trade is direct trade , which eliminates

3572-461: The indirect benefits of fair trade practices. Fair trade cooperatives create a space of solidarity and promote an entrepreneurial spirit among growers. When growers feel like they have control over their own lives within the network of their cooperative, it can be empowering. Operating a profitable business allows growers to think about their future, rather than worrying about how they are going to survive in poverty. Overall, farmers are satisfied with

3648-442: The industry. In subsequent years, fair trade agricultural commodities played an important role in the growth of many ATOs: successful on the market, they offered a source of income for producers and provided alternative trading organizations a complement to the handicrafts market. The first fair trade agricultural products were tea and coffee, followed by: dried fruits, cocoa, sugar, fruit juices, rice, spices and nuts. While in 1992,

3724-527: The largest: In 1998, the four federations listed above joined together as FINE , an informal association whose goal is to harmonize fair trade standards and guidelines, increase the quality and efficiency of fair trade monitoring systems, and advocate fair trade politically. Student groups have also been increasingly promoting fair trade products. Although hundreds of independent student organizations are active worldwide, most groups in North America are either affiliated with United Students for Fair Trade (USA),

3800-633: The last several decades. Women college students have a more favorable attitude than men toward buying fair trade products and they feel more morally obligated to do so. Women are also reported to have stronger intentions to buy fair trade products. Producers organize and strive for fair trade certification for several reasons, either through religious ties, wants for social justice, wants for autonomy, political liberalization or simply because they want to be paid more for their labor efforts and products. Farmers are more likely to identify with organic farming than fair trade farming practices because organic farming

3876-430: The level of individual producers (members of the organization)" which means that the "producer" here is halfway up the marketing chain between the farmer and the consumer. The part of the standards referring to cultivation, environment, pesticides, and child labour has the farmer as "producer". An alternative trading organization (ATO) is usually a non-governmental organization (NGO) or mission-driven business aligned with

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3952-463: The market in terms of units was fair-trade flowers, with over 825 million units sold. To gain a licence to use the FAIRTRADE mark, businesses need to apply for products to be certified by submitting information about their supply chain. Then they can have individual products certified depending on how these are sourced. Coffee packers in developed countries pay a fee to the Fairtrade Foundation for

4028-556: The notion of fair trade practices as "moral economies". The presence of labeling gives consumers the feeling of "doing the right thing" with a simple purchase. Labeling practices place the burden of getting certification on the producers in the Global South, furthering inequality between the Global North and the Global South. The process of securing certification is burdensome and expensive. Northern consumers are able to make

4104-403: The organisation will be able to use the label on all its products. Fair Trade is a type of partnership based on communication and reverence that ensures fairness in international trade. Since the seventies, there have been several groups and conferences held that discussed the implementation of regulations regarding trade. However, The World Fair Trade Organization (WFTO) was not established until

4180-459: The original objectives of fair trade and that market products through alternative channels where possible and through specialist fair trade shops, but they have a small proportion of the total market. Fair trade benefits workers in developing countries, considerably or just a little. The nature of fair trade makes it a global phenomenon; therefore, there are diverse motives for group formation related to fair trade. The social transformation caused by

4256-492: The overhead of the fair trade certification and allows suppliers to receive higher prices much closer to the retail value of the end product. Some suppliers use relationships started in a fair trade system to autonomously springboard into direct sales relationships they negotiate themselves, whereas other direct trade systems are supplier-initiated for social responsibility reasons similar to a fair trade systems. A large number of fair trade and ethical marketing organizations employ

4332-554: The principle of alternative trade, the need for advocacy in their working relations , and the importance of awareness-raising and advocacy work. Examples of such organisations are Ten Thousand Villages, Greenheart Shop, Equal Exchange , and SERRV International in the U.S. and Equal Exchange Trading , Traidcraft , Oxfam Trading, Twin Trading , and Alter Eco in Europe as well as Siem Fair Trade Fashion in Australia. The concept of

4408-411: The right to use the brand and logo. Packers and retailers can charge as much as they want for the coffee. The coffee has to come from a certified fair trade cooperative, and there is a minimum price when the world market is oversupplied. Additionally, the cooperatives are paid an additional 10c per pound premium by buyers for community development projects. The cooperatives can, on average, sell only

4484-453: The rules and practice of conventional international trade. There are several recognized fair trade certifiers , including Fairtrade International (formerly called FLO, Fairtrade Labelling Organizations International), IMO, Make Trade Fair , and Eco-Social. Additionally, Fair Trade USA , formerly a licensing agency for the Fairtrade International label, broke from the system and implemented its own fair trade labelling scheme, which expanded

4560-471: The same importing, packing, distributing, and retailing firms used worldwide. Some independent brands operate a "virtual company", paying importers, packers and distributors, and advertising agencies to handle their brand, for cost reasons. In the producing country, fair trade is marketed only by fair trade cooperatives, while other coffee is marketed by fair trade cooperatives (as uncertified coffee), by other cooperatives and by ordinary traders. To become

4636-702: The school but throughout the wider community. A Fair Trade University develops all aspects of fair trade practices in their coursework. In 2007, the Director of the Environmental Studies program at the University of Wisconsin-Oshkosh , David Barnhill, endeavored to become the first Fair Trade University. This received positive reactions from faculty and students. To begin, the university agreed that it would need support from four institutional groups—faculty, staff, support staff, and students—to maximize support and educational efforts. The University endorsed

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4712-509: The scope of fair trade to include independent smallholders and estates for all crops. In 2008, Fairtrade International certified approximately (€3.4B) of products. On 6 June 2008, Wales became the world's first Fair Trade Nation ; followed by Scotland in February 2013. The fair trade movement is popular in the UK, where there are over 500 Fairtrade towns , 118 universities, over 6,000 churches, and over 4,000 UK schools registered in

4788-490: The social premium in its entirety on themselves, but the rest invest in public goods, like paying for teachers' salaries, providing a community health care clinic, and improving infrastructure, such as bringing in electricity and bettering roads. Farmers' organisations that use their social premium for public goods often finance educational scholarships. For example, Costa Rican coffee cooperative Coocafé has supported hundreds of children and youth at school and university through

4864-414: The social premium is and how their cooperative has used it. Three growers explained a deep understanding of fair trade, showing a knowledge of both fair market principles and how fair trade affects them socially. Nine growers had erroneous or no knowledge of Fair Trade. The three growers who had a deeper knowledge of the social implications of fair trade all had responsibilities within their cooperatives. One

4940-463: The social premium of fair trade is to privately invest in public goods that infrastructure and the government are lacking in. These include environmental initiatives, public schools, and water projects. At some point, all producer-groups re-invest their social premium back into their farms and businesses. They buy capital, like trucks and machinery, and education for their members, like organic farming education. Thirty-eight percent of producer-groups spend

5016-419: The standards set by FLO International. The supply chain must be monitored by FLO-CERT, to ensure the integrity of the labelled product. Fairtrade certification purports to guarantee not only fair prices, but also ethical purchasing principles. These principles include adherence to ILO agreements such as those banning child and slave labour , guaranteeing a safe workplace and the right to unionise, adherence to

5092-587: The visibility of the Mark on supermarket shelves, facilitate cross border trade, and simplify procedures for both producers and importers. The certification mark is used in more than 50 countries and on dozens of different products, based on FLO's certification for coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, honey, fruit juices, nuts, fresh fruit, quinoa, herbs and spices, wine, footballs , etc. With ethical labeling, consumers can take moral responsibility for their economic decisions and actions. This supports

5168-504: The way on-campus franchises do business with the university. They required constant assessment and improvement. Being a Fair Trade University for UC San Diego is a promise between the university and the students about the continual effort by the university to increase the accessibility of fair trade-certified food and drinks and to encourage sustainability in other ways, such as buying from local, organic farmers and decreasing waste. Fair Trade Universities have been successful because they are

5244-714: 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 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 word

5320-486: The worldshops and into the mainstream, reaching a larger consumer segment and boosting fair trade sales significantly. The labeling initiative also allowed customers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the producers at the end of the supply chain. The concept caught on: in ensuing years, similar non-profit Fairtrade labelling organizations were set up in other European countries and North America. In 1997,

5396-506: Was a manager, one was in charge of the wet mill, and one was his group's treasurer. These farmers did not have a pattern in terms of years of education, age, or years of membership in the cooperative; their answers to the questions, "Why did you join?" differentiate them from other members and explain why they have such an extensive knowledge of fair trade. These farmers cited switching to organic farming, wanting to raise money for social projects, and more training offered as reasons for joining

5472-488: Was an oversupply of certification, and only a fraction of produce classified as fair trade was actually sold on fair trade markets, just enough to recoup the costs of certification. A study published by the Journal of Economic Perspectives , however, suggests that Fair Trade does achieve many of its intended goals, although on a comparatively modest scale relative to the size of national economies. Some research indicates that

5548-494: Was established in 1994 and coordinates the cooperation between Worldshops in Europe . It is a network of national associations of Worldshops representing 2,500 shops in 13 member countries: Austria , Belgium , Denmark , Finland , France , Germany , Ireland , Italy , Netherlands , Spain , Sweden , Switzerland , and the United Kingdom . NEWS! initiates and coordinates joint campaigns and awareness raising activities of

5624-488: Was run by volunteers and was so successful that dozens of similar shops soon went into business in the Benelux countries, Germany, and other Western European countries. In the early 1980s, alternative trading organizations faced challenges: the novelty of fair trade products began to wear off, demand reached a plateau and some handicrafts began to look "tired and old fashioned" in the marketplace. The decline of segments of

5700-534: Was shaped in Europe in the 1960s. Fair trade during that period was often seen as a political gesture against neo-imperialism: radical student movements began targeting multinational corporations, and concerns emerged that traditional business models were fundamentally flawed. The slogan at the time, "Trade not Aid", gained international recognition in 1968 when it was adopted by the United Nations Conference on Trade and Development (UNCTAD) to put

5776-421: Was to find a way to expand distribution without compromising consumer trust in fair trade products and in their origins. A solution was found in 1988, when the first fair trade certification initiative, Max Havelaar , was created in the Netherlands under the initiative of Nico Roozen , Frans Van Der Hoff , and Dutch development NGO Solidaridad . The independent certification allowed the goods to be sold outside

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