Fairtrade is about the fair terms of trade and business. It aims to injustices of conventional trade, which discriminates against the week and poor producers. It gives a chance to the poor producers especially farmers to get a better position and control their lives better. A developing organisation known as “Fairtrade Foundation” is challenged to deal with poverty and injustice trade. The foundation has a certification product labelling; FAIRTRADE MARK which is primary tools for our developing goals. The Fairtrade works in a way that the companies have to be a part of the organisation and the company is given a FAIRTRADE certificate. The fairtrade organisation has decided some minimum prices for different products which are been purchased by the company from the producers. The companies who are certified by the fairtrade organisation have to pay that minimum price to the producer to buy those goods. This way the companies can pay a bit higher price and the producers can maintain the balance of flow of money and keep producers to control themselves. The minimum prices which are been set are been set based on the fairtrade producers and traders which will give a full justice to cover the production price to the producers and when the market prices are higher than the minimum price been decided by organisation than the consumers can have profit as well. The whole system is been well managed that the poor people who are really deserving good price will be benefited as well as the poverty would be reduced as well (Foundation).
As we are all aware of the recent financial crisis going on which is leading to more poverty. The global economic downturn which is going on is making the things worst and worst every year. The year 2009, was really a very challenging and a tough year for everyone. In a recent research it was seen that 50-90 millionpeople are thrown down the poverty line because of the financial crisis. (organisation, 2010). The U.K people have been very loyal and considerably positive towards the value of fairtrade sale‘s increase. In 2008 the increase in value was by 12% to an estimated retail value of around £800. (organisation, 2010). The last year was really a very tough for everyone and the organisation really helped millions of growers and their families and community. In the whole system, British and Irish public has participated the most and the whole credit goes to them. Despite of the financial crisis, they have been helping out from their pocket and want to change the system of injustice and want to be fair to everyone. This is like a wake-up call for everyone and hence the companies are looking forward to join the fairtrade organisation and encourage the step taken against the injustice.
The companies have already converted their product as “fairtrade” including Cadbury Dairy Milk, Starbucks espresso-based coffee, Sainsbury's planning to convert their coffee and tea, Nestle's KitKat, Tesco converting tea and coffee, Lyle converting retail sugar and many more. There are lots of other multinational companies who have been planning to convert their product in to fairtrade business (organisation, 2010). The products who are been converted to fairtrade are tea, coffee, sugar, cotton, nuts, chocolate, cosmetics and other food items.
There are lots of reasons why company support the fairtrade. It is natural that the company has lot of profit, because it wants other people buying their product to support fairtrade. The reasons why people support fairtrade:
- It gives a fair pay and working conditioned to farmers and producers
- It proves better for the environment
- It reflects better product quality
- Its proved to be safe
- It really gives a good satisfaction and justice to the poor producers
- Gives increase in money flow and decreases financial crisis
The companies who support the fairtrade have lots of more benefits than they can expect, this is all because of following reasons (fairtrade, 2009):
- Companies get stronger position in world market
- Producer and Consumer get in a closer link
- Environmental friendly
- Extra income
The fair trade is been encouraged by lots of different companies as the companies get the benefits as well the organisation gets the benefits. The major benefits is to the poor producers who not used to get their money in a justice way. Fairtrade has a unique strategy.
The strategy used the Fairtrade is the the “Fairtrade Mark”, the fairtrade mark means : (Foundation, The Fairtrade Mark, 2005):
- The farmers get extra income and estate workers to improve their lives
- The price of the product received by the producer is fair and stable
- Better environmental values and respect
- The week farmers get a better respect and position the world market
- The other strategy is the encouragement they achieve from the companies who even look for their own benefits
- They even gain a lot of sympathy from people and get a lot of profits which is been used for a very good cause
There are various different causes and benefits from this complete organisation. The companies who collaborate have a very good chance of selling more goods than before as people support the fairtrade and they know it is for a good cause. The companies give good price to the producers.eg. Farmers who can help themselves to get what they deserve. This is meant to be a complete chain. The main thing of the whole cycle is that everybody gets benefits and even the financial crisis can be challenged. The way everything is managed is to be appreciated and should be encouraged more by various companies joining the fairtrade organisation and finally putting our best efforts to take it at a peak level where the poor get a chance to compete world and everyone get a chance to compete the economic downturn and hence a new revolution would take place.