Fairtrade Sourcing Programmes threats or opportunities? International Conference Universities Developing Social Entrepreneurship through Cross-Section.

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Fairtrade Sourcing Programmes

threats or opportunities?

International Conference Universities Developing Social Entrepreneurship through Cross-Section Collaboration

Ashraf M Hamad2 Sept. 2015

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What is Fair Trade?

Fair Trade defines a trading partnership, based

on dialogue, transparency and respect, which

seeks greater equity in international trade. It

contributes to sustainable development by

offering better trading conditions to, and

securing the rights of, marginalized producers

and workers – especially in developing countries.

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FAIRTRADE Mark

The FAIRTRADE Mark is recognized by

consumers around the world as the leading

social and sustainable development Mark. It

inspires high trust in consumers around the

world that a considered purchase improves the

lives of people and communities in developing

countries.4,500 Fairtrade products available in more than 120 countries

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Fairtrade Sourcing Programmes (FSPs)

A response to the frustration and disappointment of

Fairtrade cotton, cocoa and sugar farmers that they can

still only sell a small proportion of their crop on the

Fairtrade market.

A new approach to connecting businesses with

producers in sourcing Fairtrade cocoa, sugar and cotton

on Fairtrade terms.

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Opportunities!

The Fairtrade Sourcing Programs bring more of the benefits of

Fairtrade to everyone involved, starting with farmers:

More benefits for farmers

More opportunities for businesses

More choices for shoppers

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Opportunities (cont.)

Starting from October 2015 to

reach 100% Fairtrade cocoa by 2020.

The Fairtrade premium will reach £1.5

after 2016.

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Threats!

Consumer trust and confusion;

Impact on small producers;

Dilution of fairtrade standards;

Competition with the original mark.

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A Final Thought!

In order to achieve the benefits of FSPs without

compromising the original FAIRTRADE Mark

model, would the big companies accept to

communicate their commitment to Fairtrade

ONLY through their corporate responsibility

reports rather than using the new FSPs marks?

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THANK YOU for your attention. Please feel free to raise any questions or comments.

Further inquiries:Ashraf Hamad: [email protected]