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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]