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All is fair in trade
[Thu 01/01/1970 10:00:00]
 Beyond the complex web of acronyms, abbreviations and technical terms that shroud the fair trade movement is a heart of gold that beats to a generous tune. Not simply governed by a single organisation, the fair trade movement is comprised of a colourful network of various associations and their members. Driven to encourage the production and sale of ethically made goods, protect the environment, foster the growth of the organic sector and empower people in developing countries, this philanthropic bunch work both together and separately for a common good.
What is the difference between ‘Fairtrade’ and ‘fair trade’?
Many a retailer, wholesaler and consumer have gotten themselves into a tangle over the terms ‘Fairtrade’ and ‘fair trade’ and the differences in what they mean. To put it simply, on paper the only difference is in two little capital letters, though in the real world the distinction is vast.
The term ‘Fairtrade’ is used to describe the official certification and labelling system, which is governed by Fairtrade International (FLO). This system operates on a global level and identifies goods that have been through a rigorous certification process, which results in them being heralded with a formal Fairtrade classification. In short, goods that proudly display the Fairtrade Certified label are recognised as ‘Fair Trade’.
The term ‘fair trade’ refers to the fair trade movement as a whole though does not automatically imply that the products concerned meet official Fairtrade certification standards. Products referred to as ‘fair trade’ have usually still been traded fairly and often hail from the work of Alternative Trade Organisations (ATOs) or other trade federations or networks.
What is Fair Trade Fortnight?
Fair Trade Fortnight is a celebration of all things fair trade, which spans the shores of Australian and New Zealand from May 7 to 22 2011. Designed to promote the fair trade movement for retailers, wholesalers and consumers, Fair Trade Fortnight includes events and initiatives that encourage consumers to make the swap to buying Fair Trade products. Likewise, retailers can get involved and reap the benefits too.
“Being part of a national campaign gives retailers exposure, support, access to free promotional materials and the potential to increase sales. Beyond this, it allows the retailer to build relationships with both customers and staff—often increasing morale and retention when they begin to understand the values underlying the business.”
What is Fairtrade Australia & New Zealand and what does it do?
Part of the job of Fairtrade Australia & New Zealand is to oversee the endorsement of Fairtrade Certified products in these countries and work with related organisations in Australia and throughout the world to build the fair trade movement and grow the market. Fairtrade Australia & New Zealand is a member of Fairtrade International (FLO), which sets the international standards and supports producers form around the world.
“Fairtrade Australia & New Zealand is responsible for licensing companies to use the Fairtrade Label,” Swan explains. “To be licensed, a company must disclose the full supply chain of the products it wants to be labelled as Fairtrade Certified—from their direct supplier to the Fairtrade Certified producing communities who grew the ingredients.”
 What is FTAANZ and what does it do?
FTAANZ is simply a concise way of referring to the Fair Trade Association of Australia & New Zealand. The work of the association is split into three primary areas: increase an understanding and awareness of the fair trade movement, support its development and sustainability and link producers of fair trade with various markets. FTAANZ promotes two globally recognised systems of fair trade: Fairtrade International (FLO) and the World Fair Trade Organisation (WFTO).
FTAANZ is a great place to start and should be your first port of call if you are interested in getting involved with the fair trade movement. The association also collaborates with other related organisations and represents a large database of members.
“FTAANZ is responsive to its members in helping them access and promote Fairtrade Certified and fair trade products in Australia and New Zealand,” Swan says. “It also provides opportunities for traders to participate in Fair Trade Fortnight and other campaigns and events.”
Who can become a FTAANZ member and what are the benefits?
Any interested party can become a member of FTAANZ. Membership is organised annually though it is important to note that simply joining the association does not automatically endorse your products or business with Fairtrade Certification.
As a retailer, becoming a member of FTAANZ provides you with opportunities to network with other retailers, individuals and organisations who are also involved with the fair trade movement. FTAANZ also helps its members participate in Fair Trade Fortnight as well as secure and promote Fairtrade Certified products and fair trade goods.
“Joining FTAANZ also gives you an active voice in the development and future direction of fair trade activities in Australia, New Zealand and the region through the Annual General Meeting, general meetings with members, and opportunities to serve on the Executive Committee and various workshops, working groups and sub-committees,” Swan says.
 Who sets the final price off fair trade products?
Retailers ultimately determine the final price of fair trade and Fairtrade Certified products, which can be less or more than their mainstream equivalents. An independent body named FLOCERT verifies that producers of Fairtrade Certified products are paid the correct price, though this has no bearing on the final recommended retail price.
Whenever a Fairtrade Certified product is purchased, the producer receives at the very minimum the Fairtrade Minimum Price or sometimes higher based on market conditions. They also receive additional funds to invest in social, environmental and business development. Nevertheless, it is important to note that these two payments are not linked to the recommended retail price of a product.
Some retail prices are positioned higher than their mainstream counterparts, which is often a marker of their superior quality, particularly if they are organic. Though it is not uncommon to see fair trade products that are more affordable than their conventional cousins as well.
What does Fairtrade Certified aim to do?
In recent times, a handful of organisations, associations and alliances have sprung up with various aims of alleviate poverty, advocating fair trade, growing the organic market and supporting ethical production. While this positive step allows people to support various important causes and make informed choices, it often results in confusion as to the aims at the heart of the Fairtrade Certified label.
“Fairtrade Certification is the only system whose purpose is to tackle poverty and enable the empowerment of producers in developing countries,” Swan says. “While other certifications aim to protect the environment or enable companies to trace their coffee, their central focus is not about helping farmers and workers improve the quality of their lives and take more control over their futures.”
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