Thursday, July 13, 2017
How does FairTrade help sustainable
development?
Lesson objectives;
To develop a greater understanding of sustainable development.
To develop a greater knowledge of how FairTrade helps
sustainable development.
To be able to
explain how
FairTrade
encourages
sustainable
development
economically,
socially and
environmentally.
(level 7)
To be able to
describe how
FairTrade is a form
of sustainable
development.
(Level 6)
To be able to
identify the
advantages and
disadvantages of
FairTrade.
(Level 5)
Starter- Quick re-cap
1. What is trade?
2. What is FairTrade?
1. How does FairTrade help farmers?
Fair Trade is where
producers are paid a price
for their product that
covers the cost of
production- despite changes
in the price at market.
Fair Trade products are
often more expensive
because an additional 20%
is charged to consumers,
called a social premium,
this is invested in the
local communities producing
the products.
‘Everyone should buy FairTrade’
Totally
agree
Totally
disagree
Advantages and disadvantages of
FairTrade?
Advantages
Disadvantages
Fair trade gives farmers a fairer
price for their goods.
Consumers have to pay more for
FairTrade products.
Farmers are trained in the best
farming methods, which are good
for the environment.
The
companies
that
sell
FairTrade products often miss
lead their customers as to where
the product actually comes from.
The social premiums (profit from
Fair Trade) go towards paying for
schools and healthcare.
No child labour is allowed if
farmers are part of FairTrade.
Most FairTrade items such as
soap and clothes are sold in
specialised stores and therefore
brought less frequently.
How do MEDCs benefit...
• Consumers know they are purchasing a product which is ethical,
no child labour, organic, fair price, from co-operatives that are
democratically run.
• Consumers can directly trace their purchase.
• Consumers can have a direct influence on the quality of life of
LEDC producers through the goods they purchase.
• LEDC producers have more income to purchase MEDC processed
goods (?).
Potential Drawbacks....
• Niche market, therefore has a limited impact.
• It continues to support areas where there is overproduction.
• Critics suggest it encourages further overproduction by non-fair
trade producers, therefore lowering prices further.
• It doesn’t encourage the development of secondary processing,
which would generate higher prices.
• Market share drops during economic difficulties.
• It doesn’t solve the unfair trading practices which limit the
development of LEDCs.
What is FairTrade?
• Fairtrade is an alternative approach to trade and is based on a
partnership between producers and consumers.
• Fairtrade offers producers a better deal, for example there is a fixed
price for products like cocoa when the world market prices fall below
a level that would sustain the farmer. Fairtrade also pays the
Fairtrade premium which is an additonal sum of money to be spent
on community projects. This allows them the opportunity to improve
their lives and plan for their future.
• When a product carries the FAIRTRADE Mark it means the
producers and traders have met Fairtrade Standards.
http://www.fairtrade.org.uk/products/chocolate_products
/default.aspx
How do LEDC producers benefit...
•
Farmers receive a fair and stable price for their products.
•
Sell direct to the global buyers, cuts out local markets, maximising profits.
•
Partial pre-payment allows more effective long-term financial planning.
•
Producers have the opportunity to improve their lives through a social
premium.
•
Through co-operatives producers have greater collective bargaining with
purchasers and supplies.
•
Helps diversify into new markets and products, from ones where there is
overproduction, via cheap credit.
•
Help and advice with farming practices, thereby maximising yields.
What is sustainable development?
In order for development to be completely effective it needs to be sustainable.
Sustainable development has three main pillars economic, social and environmental. This
means that trade must help development in a sustainable way. FairTrade therefore
encourages sustainable development.
Economic- improvement
of human welfare- e.g.
farmers are paid more for
their crops
Sustainable
Development
Environmentalprotection of natural
ecosystems e.g. not
spraying pesticide
Socialenrichment
of
lifestyles
e.g.
farmers can send
their children to
school.
Helping sustainable development or not?
1. Farmers spray pesticide all over their crops to
prevent pests eating them.
2. Farmers get a fairer price for their crops and are
able to send their children to school.
3. Social premiums from FairTrade help to improve
schools and hospitals.
4. Farmers are trained in the best methods of
production so that the soil is protected.
5. Farmers use harsh methods to farm the soil
eroding it.
6. Children help out on farms instead of going to
school.
7. Farmers are given free trees to plant to help
prevent soil erosion so that the nutrients stay in
the soil to grow crops.
Chocolate that makes a
difference
Theo Chocolate owner Joe Whinney
believes that customers will pay more for
their candy bars if they know they are
investing in improving the lives of cocoa
bean harvesters in the Democratic Republic
of Congo. Ben Affleck is making the same
bet.
http://www.cbsnews.com/video/watch/?id=5
0136247n (4 minutes, 15 seconds)
Task: Either write a letter to a local Houston supermarket or to the chocolate
companies to persuade them to stock/ produce fair trade
What your letter should include (success criteria):
• An explanation of what fair trade is
• An explanation of who buying fair trade makes the farmers in LEDCs
life better
• Results of your questionnaire about fair-trade (pick suitable
questions and present these as graphs- these graphs should be
annotated to help explain the results.)
• An analysis of your results to explain why fair trade should be
stocked in these supermarkets or produced by the chocolate
companies.
Things to consider:
• Layout and presentation
• Graphs (with annotations)
• Using suitable language
FairTrade case study: Divine
• http://www.divinechocolate.com/us/aboutus
Have a look at the Divine Chocolate website
for a case study
The chocolate companies
CADBURY
http://news.bbc.co.uk/2/hi/
business/7923385.stm
http://www.forumforthefut
ure.org/greenfutures/art
icles/fairtrade-getsboost-cadbury-dairymilk
http://www.forumforthefut
ure.org/greenfutures/art
icles/making-chocolatelast
HERSHEY
http://www.fastcompany.c
om/1693089/hersheygets-not-so-sweet-kissfair-trade-month
Solutions to problems in the chocolate trade
Chocolate companies to buy cocoa direct from farmers. Chocolate companies should then be
accountable for the working conditions on cocoa plantations that supply them – e.g. by inspecting the
cocoa plantations they receive cocoa from. This is what FairTrade does, however, some companies may
not want to go through the FairTrade system.
Fix the world price for cocoa at a price that provides a living wage for farmers.
Chocolate companies to help farmers e.g. to diversify so that they have the skills to grow new crops such
as pineapples – chocolate companies have already played a role in this e.g. Cadbury.
Chocolate companies to carry the fair trade logo so that a fixed and fair price is paid.
Individuals to buy more fair-trade chocolate. Fair-trade gives farmers a guaranteed price for cocoa that
provides a living wage as well as a fair-trade premium (extra amount of money that can be spent on
community projects).
Harkin-Engel Protocol, also known as the Cocoa Protocol, was signed into law on September 19, 2001. This
states that the governments of cocoa producing states must inspect and report child labour on cocoa
plantations. It includes the involvement of the cocoa companies. However, it does not require cocoa
companies to post ‘slave free chocolate’ on their products as was originally suggested. The requirements of
this protocol have not yet been fulfilled, however, certain directives have received funding – for example:
“the aim to improve the livelihoods of cocoa growers by providing infrastructure, farmers organisations and
educational facilities in cocoa producing communities”.
Change world trade rules to employ a free trade system rather than a FairTrade system
Free Trade versus FairTrade
http://smallbusiness.chron.com/tra
de-vs-fair-trade-1683.html
Criteria
Level
5
6
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7
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Description
You are able to describe how the trade system of the world works.
You are able to describe how FairTrade works.
You are able to describe the benefits and disadvantages of FairTrade.
You use key terms appropriately and are able to structure you essay in an appropriate
way.
You are able to fully describe and begin to explain how the trade system of the world
works.
You are able to fully describe and begin to explain how FairTrade works.
You are able to fully describe and begin to explain the advantages and disadvantages of
FairTrade for the different stakeholders involved economically, socially and
environmentally.
You recognise how FairTrade can lead to sustainable development.
You are able to use key terms appropriately and can reach a plausible conclusion.
You are able to explain how the world trade system works and recognise how it is unfair
for some stakeholders involved.
You are able to explain how FairTrade works.
You are able to explain the advantages and disadvantages of FairTrade for the different
stakeholders involved economically, socially and environmentally.
You are able to describe how FairTrade can lead to sustainable development.
You primary sources of evidence (from questionnaire) to support your arguments.
You present some of your findings graphically through maps and graphs.
You are able to use key terms and reach a consistent conclusion.
Level 8+
7
 You are able to explain and evaluate how the world trade system
works and recognise how it is unfair for some stakeholders involved.
 You are able to explain how FairTrade works.
 You are able to analyse the advantages and disadvantages of
FairTrade for the different stakeholders involved economically,
socially and environmentally and you show an appreciation of the
different views
 You are able to evaluate how FairTrade can lead to sustainable
development.
 You use well researched case studies and primary sources of
evidence (from questionnaire) to support your arguments.
 You present your findings graphically through maps and graphs.
 You are able to use key terms throughout and reach a consistent
conclusion.