Fair Trade Federation Conference attendees

Beyond the Label: Building Better Fair Trade Businesses: A look at the 2012 Fair Trade Federation Conference

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In the midst of Fair Trade labeling debate small businesses that link consumers with artisans and farmers in the Global South maintain a clear focus: How do we continue to support the artisan communities we have partnered with in bringing Fair Trade products to our customers?

While the debate between Fair Trade labeling organizations Fairtrade International (FLO) and Fair Trade USA (formerly Transfair USA) rages on, 162 Fair Trade retailers (myself included), wholesalers and producers gathered last month in Bellevue, Washington for the Fair Trade Federation (FTF) Conference to strengthen connections, share information and ultimately better our businesses.

FTF is a trade association that strengthens and promotes North American organizations fully committed to Fair Trade, a just and sustainable global economic system in which purchasing and production choices are made with concern for the well being of people and the environment.

Founded in the late 1970s by a group of alternative trade organizations, including Global Exchange, FTF has 248 current members, with a majority engaged in the production and sales of Fair Trade crafts and an increasing percentage of Fair Trade commodities. The FTF recently opened up membership to include fully committed Fair Trade cafes. FTF business membership is determined by an initial screening and an annual renewal process.

Fair Trade Federation logo

The FTF member logo, while not a label of Fair Trade certification, is used to identify member businesses. This is particularly useful in the identification of Fair Trade crafts, since there is currently no certification label for craft products that represents the diversity in raw materials and production techniques.

Most FTF members seem to agree that a certification of crafts would hurt Fair Trade craft production on all levels by generalizing standards and thus creating an advantage for larger scale factory based production.  Currently under debate is the question about whether FTF member businesses should be allowed to include the FTF member logo on Fair Trade products they sell. The FTF board of directors is in the process of developing a new policy about this based on member feedback.

As the program director of the Global Exchange Fair Trade Stores, I attended the FTF Conference with the intent to build coalitions, share best practices and bring home concrete strategies for building on our 20 years in Fair Trade business….to get beyond the label.

Throughout a series of workshops, transparency was encouraged as a core principle of business growth.  FTF members opened their books to each other, sharing costing procedures, design expertise, inventory control and financial management.  In a world where cutthroat competition rules the marketplace, it is a refreshing reminder that cooperation and full-disclosure are pillars of strength within the Fair Trade movement.

Hmong weaver in Thailand Photo Credit: Global Exchange

The FTF defines transparency and accountability as one of its core principles:

“Fair Trade involves relationships that are open, fair, consistent, and respectful. Members show consideration for both customers and producers by sharing information about the entire trading chain through honest and proactive communication. They create mechanisms to help customers and producers feel actively involved in the trading chain. If problems arise, members work cooperatively with fair trade partners and other organizations to implement solutions.”

In a roundtable session between Fair Trade producers, wholesalers and retailers, a jarring reference was made to the “gas station model” in which four gas stations open on opposite corners of the same intersection.  This intersection becomes a destination and business for all four establishments improved.  Similarly, the bolstering of Fair Trade business must be done collectively and with the well being of artisans and farmer producers at its core.

During conference meal times, Fair Trade percussion instruments were distributed amongst producers, retailers and wholesalers and successively played to create layers of rhythm.  The heartbeat of the rhythm was held by the producers and the wild music-making a blaring representation of how the Fair Trade movement differs from conventional business.  The gas station model is one example of how Fair Trade business can apply conventional business techniques to strengthen our business models which are based on more than just the bottom line, but rather people, planet, AND profit.

While the labeling of Fair Trade certified commodities is critical in defining the future of the Fair Trade movement, we continue to move forward as a growing Fair Trade business network committed to strengthening Fair Trade as a positive alternative business model.

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There has been much debate and talk around this shake-up in the Fair Trade world with both Fair TradeUSA and FLO elaborating on the reasoning behind the transition.

Since the announcement, there has been a lot of change brewing with both labeling organizations. First, Fair Trade USA revealed its new labels that will appear on Fair Trade USA certified products and revealed their new initiative called “Fair Trade for All” which aims to double its impact by 2015. So, for vendors that choose to remain with Fair Trade USA but under its new certification standards, products that previously carried the ‘Bucket Boy’ label will now carry this new label.

And now, after extensive discussions with various stakeholders in the U.S., Fairtrade International has announced it will be launching new operations in the U.S. and maintaining the certification standards that FLO uses.

Fairtrade International outlined the components behind this launch, which include introducing the international FAIRTRADE Mark in the U.S. market, continued work with stakeholders to design and build an organizational structure that will reflect the needs of members and work to further expand Fair Trade in the U.S. consumer market. During the transition to an operating U.S. office, Fairtrade Canada will administer and monitor the certification and membership of the FAIRTRADE mark in the U.S. (Full disclosure: Global Exchange was at a meeting with Fair Trade advocates convened by FLO two weeks before the announcement was made public and participated in two consultations in the lead up).

According the FLO,

We recognize that there are many different approaches to Fair Trade. The global Fairtrade system will compete respectfully with FTUSA, to ensure that our cumulative efforts will continue to strengthen producers’ position in international trade and improve livelihoods. 

Only time will tell what consumers notice in the immediate and long term with another Fair Trade label in the market and different certification standards. Global Exchange will continue to advocate for Fair Trade through our retail stores and campaigns to make sure that more people are educated about the positive benefits of Fair Trade for the producers, people, and the planet.

Photo credit: Fair Trade Resource Network

FAIR TRADE USA ANNOUNCES WITHDRAWAL FROM FAIR TRADE INTERNATIONAL

On September 15, 2011 Fair Trade International (FLO) and Fair Trade USA issued a joint statement about the decision to part ways:

Fairtrade International (FLO) and Fair Trade USA (FTUSA) share a belief in the importance of empowering producers and workers around the world to improve their lives through better terms of trade. However, as we look to the future, we recognize that we have different perspectives on how best to achieve this common mission.

As a consequence, Fair Trade USA has decided to resign its membership of the Fairtrade International (FLO) system effective December 31, 2011.

You can read Fair Trade USA’s statement about why they are leaving FLO here. Also check out the Catholic Relief Services blog post Paul Rice makes the case for Fair Trade for All.

The FTUSA website announced plans to work with Scientific Certification Systems for new standards, and will continue to accept FLO certification for existing standards. Fair Trade USA states on its website, “We have partnered with Scientific Certification Systems, a globally-respected, independent certification agency with more than 25 years of experience, to conduct audits and producer certification against our new standards.”

This announcement has spurred much reaction and debate among the international Fair Trade community. Three major producer networks issued statements opposing
FTUSA’s Withdrawal from FLO.

In response to the news, Fair Trade Resource Network just announced plans to conduct 3 public webinars  in October and November with panelists from FTUSA and FLO, to discuss what implications the split has for producers and the Fair Trade movement.

The first webinar is described as “A Community Discussion of What Fair Trade USA Leaving Fairtrade International Means for Producers and Fair Trade” and Paul Rice, CEO of Fair Trade USA is confirmed as a panelist. To sign up for this webinar go here.

THOUSANDS OF KIDS REVERSE-TRICK-OR-TREATING

Reverse-Trick-or-Treating is a way for kids on Halloween to help end the exploitation of children in the cocoa industry and raise awareness of Fair Trade.

Trick-or-Treaters hand Fair Trade chocolate back to adults, with informational cards attached, to explain the problems of the cocoa industry and how Fair Trade presents a solution.

How you can get involved:  Order your Reverse Trick-or-Treat kit. (Deadline to order your kit is by October 13th.) Each kit contains 15 mini chocolates, informational cards and an instruction leaflet. The kits are free, you pay just $7.50 for shipping, but we are asking participants to round up if they are able, to help cover costs.

If you don’t manage to get one of the kits, you can still take part! Download free flyers and pass them out on Halloween. If you are part of a group, school or organization and want to purchase a group kit, please visit Equal Exchange.

OCTOBER IS FAIR TRADE MONTH
October brings cooler weather, spooky festivities, and Fair Trade! Now in its 8th year, Fair Trade month is a time for folks to take action and get involved in this socially responsible movement. This year’s theme is “Every Purchase Matters.”

Fair Trade USA describes Fair Trade month:

Throughout the month, conscious consumers and ethically-minded brands will unite to celebrate and promote Fair Trade. A variety of education events, in-store sampling programs and online initiatives have been planned to help increase awareness and sales of Fair Trade Certified products, ultimately leading to greater impact for farmers and workers in developing countries.

Here’s a list of top ten ways to get involved in Fair Trade month.

BEN & JERRY BRING FAIR TRADE TO LATE NIGHT T.V. ….AGAIN!
My faves Ben & Jerry are back at it. Once again, they brought Fair Trade into the mainstream spotlight by guest appearing on Late Night with Jimmy Fallon. Some may a recall an earlier Jimmy Fallon visit by this dynamic duo back in March when they released their new Fair Trade ice-cream flavor.

Here’s Ben & Jerry on Jimmy Fallon earlier this week:

LINKS WORTH CHECKING OUT

• SustainableBusiness.com: Hershey Gets Failing Grade on Child Labor
• MarketWatch: Fair Trade Products Just a Click Away With New “Fair Trade Finder” Application
• ROASTe: Fair Trade To Become More Fair to Coffee Lovers
• 3BLmedia: Fair Trade: Even in Tough Times, Growing Fast
• MarketWatch: Michael Franti and Grace Potter Join with Green Mountain Coffee to Raise the Volume on Fair Trade
• Change.org: Mars Commits to More Fairtrade While Hershey Loses Ethical Ground

Over 100 million people worldwide depend on artisanal and small-scale mining.  Many of these people are mired in unfair supply chains, and have great difficulty getting a fair price for the gold they mine.

Businesses can become certified to use the FAIRTRADE and FAIRMINED marks on certified gold products such as jewelry, commemorative coins, ingots, medals, trophies and religious artifacts.

FLO is the organization that coordinates Fair trade labeling at an international level.  A key part of FLO’s role is to develop and review the Fair trade standards.  FLO also helps producers to gain fair trade certification and develop market opportunities.

For more information on this historic news, please visit the Fairtrade Labelling Organizations International (FLO) at www.fairtrade.net.